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Issue: May 2012
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Welcome to the May edition of 2020's Investor Intelligence newsletter.

This month we'd like to introduce Man Series OM-IP 220, open until 15/06/2012. This is the first time Man investment is offering a capital guarantee fund to new investors.

We'll be presenting our Year-End Investment Strategies seminar in Melbourne and Brisbane later this month. After the highly successful Sydney and Perth seminars, we encourage you to register today to quickly reserve your place.

MARKET INSIGHTS
Market finished higher as investors chased higher yield
 
 

The Australian sharemarket recorded a fourth consecutive month of gains in April, with the S&P/ASX 200 Index adding 1.4%. Investors tended to favour stocks with a high yield, supporting demand for telecoms and healthcare stocks as well as Australian Real Estate Investment Trusts (A-REITs). Lower-than-expected inflation for the first quarter of 2012 supported the case for an interest rate cut in early May.

 

   
     

INVESTMENT COMMENTARY
The 'surplus we had to have'
 
 
Wayne Swan and the Labor Government handed down their 5th budget last month and presto just like magic projected a surplus of $1.5 billion for 2012-2013. Last year’s budget projected a deficit of $22 billion and the actual deficit was almost double that. This budget surplus was more about politics and is perhaps best described as the “surplus we had to have”.
 
   
 
 
FEATURED INVESTMENT
Capital growth in both rising and falling markets^
 
  For the first time, Man Investments Australia is offering Man Series 8 OM-IP 220 to new investors. Since its inception in November 2002, an original A$1.00 Share is now worth A$1.79 as at 31/12/11^. This demonstrates the Company was still capable of producing returns during the global financial crisis^.

 
 
DISCOUNTED MARGIN LENDING RATES
Reduce this year's tax by prepaying your interest costs
 
 

Fixing your margin loan and prepaying interest before 30 June may provide a number of benefits. They include a potential tax reduction for this financial year, depending on your personal circumstances.

For more on how this works, please read Asgard's Fact Sheet.

By prepaying interest you are locking in the interest rate for the following year, giving you greater certainty around the cost of your investment. Benefit from a further saving by taking advantage of our special discount interest rate of 0.4% below St George Margin Lending's standard headline rate.

 
 
FREE INVESTMENT SEMINAR
Smart Year–End Investment Strategies
 
 
Following on from the success in Sydney and Perth, we're taking our seminar to Melbourne and Brisbane later this month. We encourage members to register today to reserve their place because seats are strictly limited. In this one hour free seminar, investment professionals will share with you the strategies they use for creating and managing their wealth, as well as their viewpoint on current market conditions
 
 
2012-13 Federal Budget Summary
 
 
There were changes to income tax, small business tax, superannuation, and family benefits. There was also some focus on aged care, health services and education. 2020 have been able to make available to members MLC's simple breakdown of the key measures outlined in the Budget.
 
 
 
 
Fund Bites
 
  Challenger Challenger has proposed issuing new standalone PDSs for their managed funds range, most of which will be in the new shorter 8 page PDS form. More information will be available shortly.
  IOOF A new Supplementary Product Disclosure Statement (SPDS) for IOOF WealthBuilder, effective 11 May 2012.
  Colonial FirstState New FirstChoice PDSs, effective 28 May 2012.
     

 

Copyright 2012 2020 DIRECTINVEST

 ^ Performance figures are calculated net of all fees as at 31 December 2011. Past performance is not a reliable indicator of future performance

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