a new era , page-8

You are correct on one of the points, phishfeet

Most of my posts are indeed on hybrids: To quote GrahamCC who explained it better than me:

phishpheet & Watford - I suspect your are at cross purposes.

There are a finite number of fixed interest investments available on the ASX. Discounting the bank issues, there are only about 12-15 corporate hybrids worth considering. FCLPA is one of them.

I have a large portfolio of non-bank hybrids in my super fund for income & GUARANTEED capital gain on maturity/redemption. They are excellent vehicles for this purpose, and now is the time to be buying them.

Regarding FCL - it is one of about 1800 equity issues on the ASX. I like FCL along with many other heavily discounted speciality investments trading at less than NTA & owning excellent brands.

The question is not FCL -v- FCLPA, but is FCL the best equity investment for the next three years.

I'll leave that for others to decide.



phishpheet, maybe the stock market stays flat or goes down in real terms for 15 years. It has happened many times before.

At least Watford & I get our FCLPA returns in preference to FCL shareholders, both as to income & capital. And we are guaranteed 100 cents in the $ - one day.

The better question to FCL -v- FCLPA is overall asset allocation. Generally speaking, most Australians have too much of their net worth in the family home & Australian equities.

If you are serious about wealth preservation, the first decision is asset allocation between property, equities & fixed interest; then exotics such as currencies & commodities. Many of these decisions depend upon your age & stage in life.

One thing is certain, there are no guarantees & our love affair with equities & residential real estate may be over for a very long time. If you are under 35 this may be a revelation to you - but in the long run (30 years) it won't matter.

Cheers