Hi Adrian, Trust all is going well
We have been working hard on getting files up to date and hope to have draft returns available soon.
It is our aim to be providing management style accounts during the year so that as trustees, you can be much more pro active with a goal of increasing investment return.
As I am drafting this, Craig is making some notes to incorporate into this Nesletter
A few years ago I attended with a group of fellow accountants specializing in Super, a private session with the ATO head of superannuation compliance. She flagged that both ATO and ASIC will enhance compliance. We are now seeing this with several auditors being sanctioned, even de-registered.
Simply put they are requiring trustees to adhere to regulations including comparing to Investment Strategies.
We will be taking the lead here for our clients with reports, minutes, resolutions etc. to better demonstrate that our clients in their capacities of trustees are managing their super funds in a proper manner.
More on this later.
For the past two years you have "topped up" your contributions in June. If you intend repeating this strategy you can contribute earlier than June, the effect of which is being to benefit from the lower tax rate applying to super.
No doubt you will be aware of the governments intention to tax unrealized gains. Presently this will not affect you, however we are watching this closely and when you are fortunate enough to join the $3mill. cohort we will advise you of implications and alternatives.
I do fear this is the thin end of the wedge. No doubt the principle will be applied more widely.
I can state this with confidence because Treasury have canvassed the concept over the years, especially applyng to Family Trusts which the ATO, ASIC and Treasury despise.
FY25 – A good year
MHi Adrian,
I write to provide a portfolio update
Income is an important part of investment returns – ASX Bank hybrids pay quarterly distributions – shares half yearly
Banks have rounded out a good dividend period although ANZ, MQG and NAB hit accounts in early FY26.
Stand out performers included COL, MQG, ORG, QAN and WES
The RBA cut the cash rate twice in FY25 with the cash rate falling from 4.35% to 3.85%
There is an expectation that there will be more rate cuts in FY26 perhaps as early as the August meeting after the RBA held rates steady at the July meeting. The RBA is ‘data driven’ and appears to be waiting for more data before cutting rates. We welcome the prudent approach by the RBA.
We are stock pickers.
Your concentrated portfolio of around 30 securities is diversified across stocks and sectors
Diversification is part of our risk mitigation strategy
We expect periods of volatility – Trump Tariffs, Geopolitical events & interest rate expectations
ASX Bank Hybrids are an important allocation and reduce overall portfolio volatility