Tag: KeyInvest

As Division 296 looms, KeyInvest reveals why top-tier advisers are moving beyond policy jargon to implement a more sophisticated asset location strategy.

Private credit promises yield and diversification, but it also brings complexity, illiquidity and a growing manager universe. For KeyInvest and Atchison, the challenge is making that opportunity set more useable for advisers and retirement-focused investors.

The coming succession wave will test more than asset allocation models. It will test relationships, governance and clarity of purpose.

So, the scuttlebutt had substance: the government has backed down several controversial elements of its Division 296 super tax reform package.

Private credit can meet core client objectives if it is approached with discipline, transparency and a deep understanding of both the manager and the end-investor.

A confluence of compounding returns, further contributions and tax-paid status make investment bonds an attractive option for grandparents looking to give their loved ones a financial leg-up in life.

Private credit has been crying out for reporting standards that are clear and homogenous, but the industry is so disparate that a solution always seemed far away. That is, until the team at KeyInvest decided to do something about it.

Funeral bonds offer a host of potential benefits, including preferential tax treatment and capped exemption from the Centrelink assets test. But not all funeral bonds are created the same.

There are three things that an Australian private credit provider should be focussed on, and capital preservation is the “absolute number one”, according to Craig Brooke from KeyInvest.

The new rules around superannuation balances over $3 million have many searching for ways to mitigate the impact. The tax advantages of investment bonds may provide a viable alternative.

While private credit is becoming more and popular, it’s not always becoming more and more transparent. And investors will only feel comfortable – and realise that it’s fairly “vanilla” – when they get a good look under the hood.

Spurred by the speed and flexibility of private credit, developers are eschewing banks in favour of trusted non-bank lenders. The lending market’s evolution is good news for housing in Australia.

Market forces and changing winds in the banking sector have supercharged private credit, which is growing faster than any other arm in private capital. For advisers, that might mean reassessing which portfolio sleeve it slots into.