
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 on the value of investments.

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).

If you’re a regular reader of the daily newspapers, or an avid watcher of the financial news on television, you may hold the view that the international sharemarkets have been doing rather poorly lately, and that international property as an investment is generally something to avoid.

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) [...]