Eureka Correspondence

Getting into annuities, asset allocation, and the McMillan Shakespeare shake-out.

Getting into annuities

As always, thanks for the wonderful and interesting article on lifetime annuities. Due to the space provided, you were unable to go into too much details on this subject. Would it be possible for you or other experts to do an article and discuss this further in Eureka Report? Topics of interests are:  type of annuity products available, the providers, costs, comparison to age pension, how to qualify for the age pension etc. Thanks you in advance for your kind consideration.


Editor’s response: Thank you for your enquiry. Annuity products remain a hot topic among investors, especially those nearing retirement. In addition to our most recent article on Westpac’s entry into annuities on Monday, you may also want to search our site for some past articles on this subject. Some of the most recent include The annuity products with variable benefits, Deferred annuities get new lease of life, and Are annuities bad, or just misunderstood?

Asset allocation

I'm looking for some information on asset allocation as I look to establish a new portfolio (balanced or perhaps growth). Just wondering whether you may be able to assist.  Thanks


Editor’s response: Eureka Report now has a dedicated edition on asset allocation, every Monday, in which we cover a diverse range of products and asset classes to assist investors. I would also recommend our articles by Doug Turek as a reference point, given his regular focus on asset allocation. To read Doug’s articles, go to The Team on our home page navigation and select Doug Turek.

McMillan Shakespeare shake-out

The McMillan Shakespeare debacle should be a lesson for commentators who concentrate on balance sheet data for their recommendations. It has always been the case that the business depends on exploitation of a disgraceful tax lurk (which Tony Abbott not surprisingly wants to reinstate). Time and again your pages have included favourable mention of this company without qualification. This is really not professional.


Editor’s response: McMillan Shakespeare shares have slumped more than 50% since the Federal Government’s recent announcement over its planned changes to FBT, particularly around novated leases for employees. This represents a major component of the company’s business. John Abernethy, who has held McMillan Shakespeare in his portfolio for some time, provided his incisive view on the latest turn of events in his column last week McMillan Shakespeare: tragedy or farce?

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles