Here’s what you need to know today

• Australia’s Reserve Bank held the cash rate steady at 3.6%. This was widely expected, especially after Australia’s inflation ticked back up to 3% in August. (Capital Brief)
  
  

• In its commentary, the RBA said it expected inflation to be higher than it forecast in August, “inflation in the September quarter may be higher than expected”. This commentary saw economists temper their expectations for a November rate cut with some flagging the chance of no more rate cuts in 2025. (Capital Brief)
  
  

• The gold price continues to set records. As it breaks above $3,800 per ounce, it has now gained more than 45% in 2025 so far. Fears about a looming American government shutdown has seen investors flee to the safety of the precious metal. (The Guardian)
  
  

• Macquarie has announced it will cut hundreds of investment options on its Super wrap platform. This decision comes as the investment giant deals with the fallout from the collapses of Shield and First Guardian, two products that were available on their investment platform. (AFR)
  
  

• Australian legacy media companies Seven West Media and Southern Cross Austereo have agreed on a merger. This brings together Australia’s largest radio broadcaster and its second-largest commercial TV network into a combined $400 million company. The merged company hopes to reduce costs (an estimated $25-30 million) while managing the slow decline of ad revenue for traditional media. (ABC News)
  
  

• The US Securities and Exchange Commission will fast-track the change from quarterly reporting to half-yearly reporting. Paul Atkins, chairman of the SEC, said disclosures by public companies should be market-driven (i.e. when something happens) rather than by “prescriptive regulatory mandates”. (Quartz)
  
  

• Video game maker Electronic Arts will officially be the largest leveraged buyout in history, with a consortium including Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners and private equity giant Silver Lake agreeing to take the company private for US$55 billion. (Reuters)
  
  

• One of Britains largest companies, AstraZeneca, will list shared in New York as well as maintaining its main listing in London. The pharmaceutical company was reportedly considering moving to New York because of frustrations with Britain’s regulatory regime. (The Guardian)
  
  

• The US and Israel have launched a 20-point plan to end the war in Gaza. Key points include the release of all Israeli hostages, the demilitarisation of Gaza, and a ‘Board of Peace’ chaired by President Trump. Hamas said it was not consulted on a deal. (ABC News)

What the…?

The business of professional sport has been a fruitful industry for investors over the past decade, as huge TV rights deals have pushed up the value of teams and leagues. The business opportunity has been best exemplified by Wrexham, a fifth division Welsh football team, that was bought by Rob McElhenney and Ryan Reynolds in 2020 and now plays in second division English football.

That story has inspired rugby league great Darren Lockyer, who alongside a business partner, has bought a 90% stake in the London Broncos. The team currently plays in the second-division of English rugby league, so it is a significantly shorter path back to the first division. And much like Wrexham, they hope to document the journey with talks for a London Broncos documentary. (AFR)

Investing is a lifelong journey

Here’s what you can learn today

Comparing Superannuation fees

This is an excerpt from a recent Ask an Adviser episode on Equity Mates Investing with Alex Luck and Scott Taylor from Everest Wealth. (Apple | Spotify | YouTube)

Question: How can someone compare super funds when the fee structures are so confusing?

Super is confusing. One of the reasons we have a job, to be honest. The superannuation system in Australia scores very poorly on a global scale just in terms of how opaque it is. It’s very unclear and just very confusing for the average person to figure out what they’re paying, what they’re invested in, what their options are.

To be honest, the only real way to do this properly is to trawl through the PDS to find all the fees. That’s what we do as part of our day job. We do that to make sure we have a very good idea of what you’re being charged. It's not one fee that you’re being charged most times—it’s generally anywhere from four to eight different fees that you need to add up.

And then where most people slip up is the ability or inability to compare an apple with an apple. So they might be going, “Alright, I'm going to compare my Aussie Super fund to HostPlus.” They go through the PDS and stuff, but then they make the mistake of actually comparing an Australian Super Balanced product to a HostPlus High Growth product. So then that gives them technically the wrong answer because a higher growth fund will have a higher fee than a more defensive option.

There can be instances with a lower balance that if the super fund charges just a percentage fee, that actually works out better—even if it’s a higher percentage—than one that charges a smaller percentage plus a fixed fee. Because that fixed fee as a percentage on a smaller balance ends up being a much higher total. It’s tough. There’s no simple answer without diving into the details.

Want to speak to the Alex, Scott or another of our hand-picked financial advisers? Fill out the form on our website and we’ll put you in touch.

Want to watch the full episode? Check it out on the Equity Mates YouTube:

A message from Betashares

Betashares has launched GGBL, the newest addition to its Wealth Builder range of ETFs.

GGBL is designed to help investors access the benefits of gearing as part of their long-term wealth creation strategy. By borrowing at institutional rates that are typically much lower than those available to individual investors, GGBL provides cost-effective access to geared investing.

The Fund offers moderately geared exposure to a globally diversified portfolio of around 1,300 companies across more than 20 developed markets, excluding Australia. 

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