Hedging

Set out below are SuperGuide articles explaining Hedging.

SMSFs: Purchasing options is OK, and even sometimes CFDs

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Q: Can a SMSF buy/sell call/put options? I understand that CFDs are not permitted because it breaches the charge over asset regulation. However, is that true that options are derivatives and in giving shares as a collateral (when writing options) to the Options Clearing House, it will treated … [Read more...]

Asset classes: Naming the investment winners for the 2011/2012 year

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This article contains 2011/2012 performance data for 13 asset classes (or sub-categories). At the end of the article we have included performance data for the 2010/2011 year as a handy historical reference. If you’re a regular reader of the daily newspapers, or an avid watcher of the financial … [Read more...]

Ban unhedged international shares in default investment options

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A failure by large super funds to fully hedge against the Australian dollar on international share investments is what I consider to be a major investment boo-boo. Hedging is used to fully or partially eliminate the impact of foreign currency movements (especially the Australian dollar) on the value … [Read more...]

THE SOAPBOX: Is your super fund gambling with your retirement savings?

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Complacency is a dangerous state of mind when you’re investing billions of dollars on behalf of millions of Australians, especially in the wake of the global financial crisis (GFC). Apparently many of our large super funds have not yet grasped the lessons of this new investment world and have not … [Read more...]