Author Topic: Australian Investing Thread  (Read 1522978 times)

Alchemisst

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Re: Australian Investing Thread
« Reply #4550 on: June 23, 2019, 08:42:06 PM »
Indexing seems so much easier for Americans haha

Eh I don't really agree.
They have the 3 fund portfolio - bonds, US equities, ex-US equities
We can have the 3 fund portfolio - bonds, global equities, global equities AUD-hedged

You can swap out some AUD-hedged for VAS to get some franking credits (although much of the franking credits are priced in now), so a 4 fund portfolio instead of a 3 fund portfolio. I don't see why it needs to be any more complicated.

What about VTS? VTS has much lower expense ratio, also most bogleheads seem to own VTS rather than global. Also what's the reason for owning hedged and ingested? Wouldn't you go with one or the other?

Andy R

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Re: Australian Investing Thread
« Reply #4551 on: June 24, 2019, 12:20:56 AM »
What about VTS? VTS has much lower expense ratio, also most bogleheads seem to own VTS rather than global.

Bogleheads use VTS because they are American, so overweighting US shares is their way of lower currency risk. It doesn't make sense for us to separate into US & ex-US.

Also what's the reason for owning hedged and ingested? Wouldn't you go with one or the other?

I think I mentioned that earlier.
AUD based assets help for when the AUD rises over long periods.
ex-AUD assets help for when the AUD lowers over long periods.

Alchemisst

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Re: Australian Investing Thread
« Reply #4552 on: June 24, 2019, 03:15:37 AM »
Indexing seems so much easier for Americans haha

Eh I don't really agree.
They have the 3 fund portfolio - bonds, US equities, ex-US equities
We can have the 3 fund portfolio - bonds, global equities, global equities AUD-hedged

You can swap out some AUD-hedged for VAS to get some franking credits (although much of the franking credits are priced in now), so a 4 fund portfolio instead of a 3 fund portfolio. I don't see why it needs to be any more complicated.

What about VTS? VTS has much lower expense ratio, also most bogleheads seem to own VTS rather than global. Also what's the reason for owning hedged and unhedged? Wouldn't you go with one or the other?

Sorry that was a typo I meant to say why have both hedged and unhedged
« Last Edit: June 24, 2019, 03:17:44 AM by Alchemisst »

Trevor Reznik

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Re: Australian Investing Thread
« Reply #4553 on: June 24, 2019, 04:23:42 AM »
The AU$ generally ranges between 60c and $1 US.  Outside of that is serious outlier moments.  So I'd surmise that outside of that range ie/ under 60c it would be a good time to at least stop buying VGS and start buying VGAD, or for the brave sell some VGS and buy VGAD. 

It also trends hard within the range. 

Between Dec 96 and March 2001 it went from roughly 81c to 48c.
Then it trended all the way to July 2008 at 98c
GFC hit and plummeted to 60c by Oct 2008 where it found support
Ran back up hard July 2011 $1.10!
Sep 2015 hit 70c and we've been between 70-80c ever since.

I do like how when the GFC hit the AU$ plumetted along with the stocks, the flight to safety (US$) in times of panic is a huge bonus for us Australians investing in US$.

Sorry just random thoughts haha




Richmond 2020

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Re: Australian Investing Thread
« Reply #4554 on: June 24, 2019, 08:17:40 PM »
I notice that Vanguard are reducing/slashing their fees again. VAS down from .14% to .10%

Competition pushing the fees down for ETFs across the board.
« Last Edit: June 24, 2019, 08:30:45 PM by Richmond 2020 »

Andy R

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Re: Australian Investing Thread
« Reply #4555 on: June 24, 2019, 10:04:32 PM »
I notice that Vanguard are reducing/slashing their fees again. VAS down from .14% to .10%

I wonder if they are taking less profit from it or if they negotiated with S&P.

It would be great if they'd do outside the US what they did in the US and abandon MSCI/S&P and go with FTSE/CRSP instead. The investment will be the same, but the fees would drop like a stone, and it would serve MSCI/S&P right for being such greedy bastards.

marty998

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Re: Australian Investing Thread
« Reply #4556 on: June 25, 2019, 05:30:59 AM »
I notice that Vanguard are reducing/slashing their fees again. VAS down from .14% to .10%

I wonder if they are taking less profit from it or if they negotiated with S&P.

It would be great if they'd do outside the US what they did in the US and abandon MSCI/S&P and go with FTSE/CRSP instead. The investment will be the same, but the fees would drop like a stone, and it would serve MSCI/S&P right for being such greedy bastards.

Interesting question. I see firsthand how much the market data providers are "extracting" from the industry (and hence our investments), it's quite an extraordinary number from Moodys, S&P, Bloomberg, and those are just the well known ones.

Nonethless a drop in fees is always welcome :)

Alchemisst

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Re: Australian Investing Thread
« Reply #4557 on: June 26, 2019, 07:50:46 PM »
What about IWLD vs. VGS? IWLD expense is .09% vs .18% for VGS..

mjr

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Re: Australian Investing Thread
« Reply #4558 on: June 28, 2019, 02:06:23 AM »
Vanguard estimated dividends announced.

How about that VAP dividend ?  $2.52, 2.72%. Anyone know why it's so high ?  I assume there's some capital repaid in that.

hm520

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Re: Australian Investing Thread
« Reply #4559 on: June 28, 2019, 04:48:38 PM »
Happy new (financial) year - well almost. 19/20 should be good for me - I'll only have $5k left on HECS at the most after 18/19 so it will be paid off and there'll be a nice tax return bump.

marty998

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Re: Australian Investing Thread
« Reply #4560 on: June 29, 2019, 06:13:03 AM »
Vanguard estimated dividends announced.

How about that VAP dividend ?  $2.52, 2.72%. Anyone know why it's so high ?  I assume there's some capital repaid in that.

Top 10 stocks are 85% of the fund. I guess somewhere in those there must be a big corporate action that has triggered it. Final announcement will be on Monday, it may/may not get revised so we'll see.

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marty998

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Re: Australian Investing Thread
« Reply #4561 on: July 21, 2019, 06:06:43 PM »
Vanguard tax statements are out (got mine for VAS today).

Never seen this before but I've given a $552 AMIT upwards cost base adjustment! Nice little bonus there.

Gremlin

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Re: Australian Investing Thread
« Reply #4562 on: July 22, 2019, 08:00:38 PM »
Vanguard tax statements are out (got mine for VAS today).

Never seen this before but I've given a $552 AMIT upwards cost base adjustment! Nice little bonus there.

Yes.  I got that too!  Not quite sure how I deal with it on my tax return, but I'm sure I'll work it out.  It's a nice problem to have...

Notch

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Re: Australian Investing Thread
« Reply #4563 on: July 22, 2019, 08:50:44 PM »
Vanguard tax statements are out (got mine for VAS today).

Never seen this before but I've given a $552 AMIT upwards cost base adjustment! Nice little bonus there.

Yes.  I got that too!  Not quite sure how I deal with it on my tax return, but I'm sure I'll work it out.  It's a nice problem to have...

I don't understand the excitement.  As I understand it, the adjustment to your cost base is to compensate for that fact you are going to be taxed this year on a capital gain in the fund that you did not receive a cash distribution for.
« Last Edit: July 22, 2019, 08:52:27 PM by Notch »

marty998

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Re: Australian Investing Thread
« Reply #4564 on: July 23, 2019, 03:31:02 PM »
Vanguard tax statements are out (got mine for VAS today).

Never seen this before but I've given a $552 AMIT upwards cost base adjustment! Nice little bonus there.

Yes.  I got that too!  Not quite sure how I deal with it on my tax return, but I'm sure I'll work it out.  It's a nice problem to have...

I don't understand the excitement.  As I understand it, the adjustment to your cost base is to compensate for that fact you are going to be taxed this year on a capital gain in the fund that you did not receive a cash distribution for.

Oh? Is that how it works? Boo. I should read up on this. Thank you for correcting me there.

Well, since I'm still eating into a pile of PY capital losses, I'm not actually paying tax on those non-cash distributed gains. So it's not a total loss.

marty998

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Re: Australian Investing Thread
« Reply #4565 on: July 30, 2019, 02:16:30 AM »
I am getting the heebee jeebies about this market. Since the start of the year Telstra is up over 40%. CSL 33%, BHP 36% and even Woolies is up over 25%.

Seems very very frothy and there's no real sign of it slowing down.

Perhaps earnings season will be the reality check next week when results start getting released.

Until then, enjoy the bubbly gains!

bigchrisb

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Re: Australian Investing Thread
« Reply #4566 on: July 30, 2019, 04:40:12 AM »
I'm in the same boat.  Have gone quiet on the purchases, and indeed actually sold down a holding.  The holding I sold was BKI, which I have been unimpressed by - too many games by the manager including externalization of management and dilutive capital raising.  Never the less, as it got close to its NTA, I've offloaded.  Put a little into VGS, but most of it is sitting in cash.  That said, that was a $50k transaction on a roughly $3m equity portfolio, so I'm hardly switching to cash!

In the main I'll be letting things ride, letting DRPs do their job of automating re-investment.   The gains this year have been strong, but its off a pretty hard decline late last year - I put about $100k into the markets then.  When you look at it over a longer term, or in terms of valuation metrics (PE, yield etc), its pricier than it was, but not crazy expensive by historical norms.

marty998

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Re: Australian Investing Thread
« Reply #4567 on: August 04, 2019, 10:35:15 PM »
I'm in the same boat.  Have gone quiet on the purchases, and indeed actually sold down a holding.  The holding I sold was BKI, which I have been unimpressed by - too many games by the manager including externalization of management and dilutive capital raising.  Never the less, as it got close to its NTA, I've offloaded.  Put a little into VGS, but most of it is sitting in cash.  That said, that was a $50k transaction on a roughly $3m equity portfolio, so I'm hardly switching to cash!

In the main I'll be letting things ride, letting DRPs do their job of automating re-investment.   The gains this year have been strong, but its off a pretty hard decline late last year - I put about $100k into the markets then.  When you look at it over a longer term, or in terms of valuation metrics (PE, yield etc), its pricier than it was, but not crazy expensive by historical norms.

Raising my eyebrows at the falls the past week, including the 1.5% today. Have cash on the sidelines waiting to go, just need to determine an entry point (probably if VAS goes down to around $80).

mjr

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Re: Australian Investing Thread
« Reply #4568 on: August 05, 2019, 12:11:10 AM »
Yep, I have a few hundred k from matured term deposits that will go in when this current dip turns the corner.

Richmond 2020

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Re: Australian Investing Thread
« Reply #4569 on: August 05, 2019, 07:58:06 PM »
I finally got around to selling and closing my high fee paying Managed fund and my individual stock holdings in early July. I have used a portion of the proceeds to finalise paying off my home loan, I have paid off and closed my margin loan, and put a large chunk back into Vanguard indexed funds.

Thanks to everyone who has contributed to this tread over the years as it has helped me to simplify and improve my investments greatly.

I also have some more funds I can deploy if the markets drop far enough.

Thanks.
« Last Edit: August 09, 2019, 03:20:42 AM by Richmond 2020 »

Ozlady

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Re: Australian Investing Thread
« Reply #4570 on: August 05, 2019, 10:06:52 PM »
Yep, I have a few hundred k from matured term deposits that will go in when this current dip turns the corner.

Me too:)  Too cash heavy atm:(

Had a small nibble this morning; bought VAS for one of my kids...nothing big though...

Figured his investing horizon is MUCH longer than mine...makes it easier to pull the trigger..also got in at 6% yield (incl FC) ...

But with Trump and his histrionics , wouldn't be surprised at more buying opportunities to come:)

mjr

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Re: Australian Investing Thread
« Reply #4571 on: August 05, 2019, 11:17:38 PM »
But with Trump and his histrionics , wouldn't be surprised at more buying opportunities to come:)

Can we please keep the Australian Investing thread free from the Trump Derangement Syndrome that pollutes most of this forum ?

I placed 6 figure buy orders today, but it looks like Westpac Online Trading collapsed under the strain.  Someone's going to lose their job over this.

marty998

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Re: Australian Investing Thread
« Reply #4572 on: August 06, 2019, 02:55:27 AM »
But with Trump and his histrionics , wouldn't be surprised at more buying opportunities to come:)

Can we please keep the Australian Investing thread free from the Trump Derangement Syndrome that pollutes most of this forum ?

I placed 6 figure buy orders today, but it looks like Westpac Online Trading collapsed under the strain.  Someone's going to lose their job over this.

I actually support Trump in what he is trying to do here. For various reasons that I am afraid to detail here for want of being locked up in a Chinese gulag.

Also bought some today, $25k of VAS. Managed to almost hit the low of the day ($81.58 buy price vs $81.52 low). Felt quite good about that little piece of market timing.

CBA 2019 results gets released tomorrow. In the absence of any further conniptions on Wall Street tonight, it will be a pointer to how the market will go on open.

mjr

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Re: Australian Investing Thread
« Reply #4573 on: August 07, 2019, 03:18:29 PM »
Vanguard pre-fills are in

chevy1956

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Re: Australian Investing Thread
« Reply #4574 on: August 07, 2019, 07:11:44 PM »
Vanguard pre-fills are in

Thanks for that.

Julard

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Re: Australian Investing Thread
« Reply #4575 on: August 11, 2019, 01:35:30 AM »
My VGE and VAS have prefilled, but VGS isn't there - anyone else?

chevy1956

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Re: Australian Investing Thread
« Reply #4576 on: August 12, 2019, 01:53:22 AM »
My VGE and VAS have prefilled, but VGS isn't there - anyone else?

It was there for me.

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4577 on: August 13, 2019, 04:30:14 AM »
But with Trump and his histrionics , wouldn't be surprised at more buying opportunities to come:)

Can we please keep the Australian Investing thread free from the Trump Derangement Syndrome that pollutes most of this forum ?

I placed 6 figure buy orders today, but it looks like Westpac Online Trading collapsed under the strain.  Someone's going to lose their job over this.

I actually support Trump in what he is trying to do here. For various reasons that I am afraid to detail here for want of being locked up in a Chinese gulag.

Also bought some today, $25k of VAS. Managed to almost hit the low of the day ($81.58 buy price vs $81.52 low). Felt quite good about that little piece of market timing.

CBA 2019 results gets released tomorrow. In the absence of any further conniptions on Wall Street tonight, it will be a pointer to how the market will go on open.

Et tu, Marty?

Richmond 2020

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Re: Australian Investing Thread
« Reply #4578 on: August 15, 2019, 10:10:38 PM »
But with Trump and his histrionics , wouldn't be surprised at more buying opportunities to come:)

Can we please keep the Australian Investing thread free from the Trump Derangement Syndrome that pollutes most of this forum ?

I placed 6 figure buy orders today, but it looks like Westpac Online Trading collapsed under the strain.  Someone's going to lose their job over this.

I actually support Trump in what he is trying to do here. For various reasons that I am afraid to detail here for want of being locked up in a Chinese gulag.

Also bought some today, $25k of VAS. Managed to almost hit the low of the day ($81.58 buy price vs $81.52 low). Felt quite good about that little piece of market timing.

CBA 2019 results gets released tomorrow. In the absence of any further conniptions on Wall Street tonight, it will be a pointer to how the market will go on open.

Got myself $10k of VAS as well @ $81.20.

marty998

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Re: Australian Investing Thread
« Reply #4579 on: August 16, 2019, 03:18:13 AM »
But with Trump and his histrionics , wouldn't be surprised at more buying opportunities to come:)

Can we please keep the Australian Investing thread free from the Trump Derangement Syndrome that pollutes most of this forum ?

I placed 6 figure buy orders today, but it looks like Westpac Online Trading collapsed under the strain.  Someone's going to lose their job over this.

I actually support Trump in what he is trying to do here. For various reasons that I am afraid to detail here for want of being locked up in a Chinese gulag.

Also bought some today, $25k of VAS. Managed to almost hit the low of the day ($81.58 buy price vs $81.52 low). Felt quite good about that little piece of market timing.

CBA 2019 results gets released tomorrow. In the absence of any further conniptions on Wall Street tonight, it will be a pointer to how the market will go on open.

Et tu, Marty?

I presume that comment is about my comment on Trump.....

Someone needs to stand up to the autocratic regime and the market / trade abuses being perpetuated. I don't like Trump but the appeasement of the last 10 years has most certainly not worked.

Playing nice to China means that end up owning your economic ass. Or at the very least, the Port of Darwin as we've come to find out.

superannuationfreak

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Re: Australian Investing Thread
« Reply #4580 on: August 17, 2019, 09:40:34 PM »
Preparing for a crash...Family Trust?
Bitcoin, Gold, Bullets and Canned Food?

Kidding, I'm not actually changing my asset allocation (which is probably on the conservative side here, and does include somewhat more cash than it did two years ago).

What I was actually thinking about was tax-related opportunities if global shares do fall more than 25% (in AUD-terms, so would probably need to be more in local currency terms since the AUD tends to crash concurrently).

Currently my wife and I have similar amounts of international equities in each name, and some cash that is mostly in the lower-earning spouse's name (today, and probably for the next decade, my wife).  If shares fall we can use at as an opportunity to move more assets into my wife's name.  I was wondering if we should instead consider a family trust and at what level of financial assets people here have found it beneficial from a tax perspective?

Superficially it sounds good.  Investment income can be streamed to my wife for the next decade or so (all going well) and then split with me if I cut back/RE after FI.  When my son is 18 some of the income can accrue to him also.

However in practice I'm not sure it's worth the expense or legislative risks (e.g. minimum tax rate proposed at last election).  My son will hit 18 after we reach preservation age so I would guess, to the extent that we are allowed to, we will be better-off shifting assets into Super to the extent possible closer to the time.  We're not early-retirement-extreme but I'm also not planning to hit the 2x $1.6m pension cap.

There's also asset protection which I don't think is an issue today.  If I ever became a director on a board I guess it would be prudent but I think getting on good boards will be challenging as the super industry consolidates, so I don't think I can expect that.  Plus our house is in joint names so a trust is probably not much protection.

Appreciate any thoughts from those who've considered it or done it themselves.