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Recent Questions & Answers

Growth over income?

I manage a SMSF in pension phase and have been reviewing your model Income portfolio with a view to using it as a model for our exposure to the Australian share market.

I also reviewed your model growth portfolio. The main focus of the SMSF is income and it would appear the projected income/franking credits from the growth portfolio is not much lower than the income portfolio. Is my observation here correct? If so I would be comfortable with the income produced by the growth portfolio as it includes more potential for growth.

Regards

 


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Sydney Airport

When Sydney Airport (SYD) announced that they might not exercise their option to develop Badgerys Creek airport, the share price fell to under $6.

If SYD decides that the business case doesn’t stack up and does not take up their option, what likely effect will that have on the share price? If they do take up the option, what will be the effect of that?


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Glenworth Mortgage Insurance: Buy or Avoid?

Recently, GMA’s price has been smashed from a high of AUD$3.50 to the current AUD$2.90 today; various factors like increased likelihood of mortgage distress, etc contributing to the lower than anticipated bottom line.

Compared to other popular peers like CVO (covermore), it’s P/E ratio looks tantalizing, it’s dividend yield is fantastic (8.6% if it holds at around AUD$2.80 to AUD$3 bucks) and the EPS is still relatively strong at 30.1 cents.

What are your thoughts?
Oversold on fears?
Market moving to other peers?

Or, perhaps, if one holds a contrarian view, time to dip in and buy some?

Your thoughts,

Kind regards


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The future growth of CGF

I am keen to understand the factors that have driven CGF’s spectacular hockey stick growth in share price post-GFC, where it was at AUD$0.87, to its spectacular rise between 2012 and 2017, from AUD$5 to AUD$11.

What could possibly drive the growth/appreciation in share price of Challenger Growth Fund (CGF)?

Do you think in the current/short term low interest rate environment, this growth could possible still have legs? Or, would it be a Domino Pizza, Blackmore or REA story, where too much growth, and shifting of assets results in share price tumble?

Kind Regards


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SMSFs whilst living abroad

My wife and I are considering living abroad in either Vietnam or Cambodia, for a period of anywhere from a few months to a couple of years.

Am I permitted to do this with an ongoing SMSF?


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Mantra

I currently have a paper loss of about 20% on Mantra. I have been caught before selling out of shares only to later see them recover.

What is your view on Mantra?


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