Bond investors like Labor’s franking cut

Original article by John Kehoe
The Australian Financial Review – Page: 5 : 7-Nov-18

The Federal Opposition’s plan to abolish cash refunds for excess dividend imputation credits if it wins the next election has widespread support among bond fund managers. Elizabeth Moran of FIIG Securities says the dividend imputation system has prompted many investors to be highly exposed to risker asset classes; she notes that while bonds offer lower yields, they also offer less volatility. Australian Securitisation Forum CEO Chris Dalton agrees that Labor’s policy will make bonds more attractive to investors.

CORPORATES
AUSTRALIAN LABOR PARTY, FIIG SECURITIES LIMITED, AUSTRALIAN SECURITISATION FORUM, REALM INVESTMENT MANAGEMENT PTY LTD, AUSTRALIAN TAXATION OFFICE, ALTIUS ASSET MANAGEMENT PTY LTD, PLATO INVESTMENT MANAGEMENT LIMITED, AUSTRALIAN STOCK REPORT LIMITED, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

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