Alan Kohler’s Overview
Published every Saturday
In this week’s overview, Alan outlines the cycle that central bankers are trying to break the world out of.
Plus a look at:
- The politics of investment
- Italy – and its fundamental problem
- Gold – the consumer commodity
- Results from some of Australia’s biggest companies
- What’s going on in the disruptor world
- Plus lots of R&D (Research and Diversions) as well as what went on this week in the markets and what’s coming up next week.
Coming up this week
Talking Finance Podcast
Alan Joyce, CEO of Qantas Airlines kicks off another reporting special on Talking Finance. I’m also speaking with Mark Fitzgibbon of NIB Holdings as well as Sue Channon from Virtus Health to see how their companies fared. And in this week’s finance 101 Michael Panaccio, Investment Principal of Starfish Ventures, explains how venture capital works.
Talking Finance Podcast (snippet)
Success Stories Podcast
Our brand new podcast Success Stories, presented by Catherine Robson, Principal of Affinity Private is here and it’s free! Each week Catherine speaks to people who are at the pinnacle of their careers and asks, “how did you get here?”. This week you’ll meet Alice Williams – a director on numerous boards who has helped steer Melbourne Ports to greater productivity, and advised Treasury on foreign investment in Australia. Subscribe now on iTunes.
Exclusive Facebook Group
Question of the week
Q. What do you feel is a reasonable fee for an advisor to charge for managing a self-managed super fund?
Alan advised that it depended on whether the advisor was deciding on the investments or was purely focused on administrative tasks.
“If it’s administration it could be between $300 to $400 a year, possibly a bit more for the audit.”
“If the advisor’s making decisions on the investments that go into your superfund, then it was not really self-managed. You need to compare the cost you’re paying the advisor with other superfunds such as Australian Super, Hesta and AMP Super for example. Those outfits charge between 1 to 1.5%”.
“There’s no point paying an advisor unless you give them a bonus for producing a better result than a regular super fund”.
Charts For Charts Sake
Chart of the week
Marathons in China
The Beijing Marathon—the most prestigious marathon event in China, despite the capital’s atrocious air quality—has so many runners wanting one of its 30,000 spots that it now holds a lottery to allocate them. In 2011, it took six whole days for those spots to be filled up, which in 2012 shrank to three days, and then 13 hours in 2013. In 2014, as part of Premier Li Keqiang’s deregulation drive, the central government canceled some of the approvals required to hold sporting events, which made it much easier for localities to organize them, which they quickly did. The number of marathons registered at the China Athletics Association surged to 134 in 2015 from 51 in 2014, with the number of runners rising nearly 70% to 150mn. So far in 2016, the number of marathons is on pace to triple again.