News Round Up

Technolgy down but not out, Compulsory super with tax incentives please, US giant lands in Australia, Health professionals investment options widen.

Sunday, December 3rd 2000, 10:58PM

The continuing fall of the technology sector is presenting some good buying opportunities, Capital International senior vice-president Lionel Sauvage says.

The Nasdaq index continued its fall last week finishing up at a level which is 50% lower than the high it reached in March this year. The latest news to hit the index was a severe profit downgrade warning from Gateway computers (the company which bought PC Direct in New Zealand and distributes its computers through the Warehouse).

Sauvage, who was in New Zealand last week doing a series of presentations for Guardian Trust Funds Management, says technology shouldn't be written off as a sector.

He says the volatility shown by the sector at the moment illustrates that it is cyclical (although many people thought it wasn't), and the Nasdaq will turn around.

Sauvage also says that the technology industry will continue to maintain rapid growth, therefore making it an attractive investment proposition.

Compulsory super with tax incentives please

A top fund management boss in Australia has suggested that that country's compulsory superannuation scheme may have to be supplemented with tax incentives for voluntary long-term savings.

AXA chief executive Les Owen says the current system is "overtaxed and overly complex", and it won't address some of the long term issues the country faces.

He says that instead of increasing the mandated level of contributions individuals have to make to their savings, the the government should look at introducing tax incentives.

We have a new question in our SuperTalk opinion poll: Do you believe the Big Cullen Fund will provide you with sufficient Super when you retire? To cast your vote in this poll - click here

US giant lands in Australia
Giant US online broking firm Charles Schwab has finally entered the Australian market after eyeing it up for almost two years.

Schwab Australia chief executive Linda Sarinske says the group entered Australia because of the sophistication of Australia's investors.

"We have found that Australian investors are very quick adaptors of the technology, as well as there is an interest in financial markets and a willingness to learn," she says.

Schwab is looking to compete on service rather than price. Currently it is offering trades at A$30 a pop.

Schwab Australia has 150 employees and was established in February this year as a 50/50 joint venture between Charles Schwab and ecorp Limited.

Health professional investment options widen
The Medical Assurance Society has set up a new range of savings and investment options with Armstrong Jones.

There are four options in its new package. A cash account, two master funds, two diversified funds and a financial planning service.

Besides this new range of services, Medical Assurance still continues to use a master fund service it has with New Zealand Funds Management.

« The war for talent fires up pay

Get your tax questions answered online »

Special Offers