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Recent Questions & Answers

Labor’s Proposed Franking Credit Change

I’ve seen a lot of debate about Labor’s proposed change to franking refunds and suggestions SMSFs should close their fund and transfer to industry or corporate funds. Isn’t this just jumping from frying pan to pot as there will be significant fees to be paid to that fund more or less offsetting any franking credit loss ? This is without considering the loss of control in decision making etc.


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Thoughts on KDR

I’d like your current thoughts on KDR.
I have a substantial holding in the company purchased, over time, at an average price of $1.64.
Should I continue to hold, waiting for a performance similar to FMG, or should I start selling to give me a more balanced portfolio?


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Listed Property Trust and Unlisted Property Trust

Listed Property Trust (LPT): Quite easily traded/sold if cash is needed within a few days.
Unlisted Property Trust (UPT): Not so quickly traded to obtain cash, compared to LPT.

1. Apart from the above two points, what are the pros and cons of investing in Listed vs Unlisted Property Trusts?
2. There are ETFs for LPT. Do UPT invest in ETFs for properties?
3. How would a potential investor determine what level of gearing ratio (in particular with UPT) is reasonably safe for the ULP?
4. Would it be prudent to invest approx. similar proportions in LPT and UPT for a balanced “property” (non-residential) investment?


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Franking a Dividend

Could you please tell me if the following could happen.

Could a company such as CBA pay an increased dividend before tax to a smsf, in lieu of a franked dividend?


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Share Bonus Plan

I am a SHL shareholder. Do you think the share bonus plan is worth taking up?
I am a long term perspective, so am prepared to hold approximately 5 years.


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