Ethical investments perform best even during the pandemic, says RIAA

Wednesday, 23 September 2020

Ethical and sustainable investments are the way of the future, according to the Responsible Investment Association of Australia (RIAA).The group has released new research showing responsible investment funds outperform their mainstream competitors across 1, 3, 5 and 10-year timeframes. This includes analysis of fund stability during the economic disruption caused by COVID-19.“The pandemic has resulted in significant economic turmoil, severely impacting many people’s livelihoods and financial markets globally. However it’s become clear that responsible investors are ahead of the game,” RIAA chief executive, Simon O’Connor said.“They are identifying the key themes influencing markets and returns, which helps them to better navigate turbulent times, avoid the biggest risks and capture more opportunities” The RIAA report assessed Australia’s responsible investment market in 2019. It found over $1 billion in assets under ethical management, which was a rise of 17% from 2018. This kind of investment now represents 37% of more than $3 trillion in Australia’s professionally managed assets.O’Connor said companies and investments simply won’t thrive in the future if issues like climate change, health, working rights, diversity and corruption aren’t taken into account. “Investors are fast realising that consideration of these issues provides more informed investment decisions, such as valuation and asset allocation," he said.RELATED: Accessed your super early? Here’s how to rebuild your nest egg.

How to get your savings ready in time for summer

Tuesday, 22 September 2020

For many, the warmer spring days are a great motivation to drink more water and snack on more juicy fruits. Now while we also love a good smoothie, we’d rather talk about whether or not your savings account is getting its five-a-day.

5 things to buy and sell preloved this month and save

Thursday, 17 September 2020

Here at Mozo we reckon buying and selling preloved all year round is not only good for the planet, but also for your wallet. So we took a look at Gumtree’s latest Secondhand Economy Report to see what items Aussies are most interested in buying or selling used.

How to teach kids the value of dollars and cents

Monday, 14 September 2020

When it comes to finances, there is one thing you simply cannot buy and that’s good money habits from an early age. Just like riding a bike or learning a second language, some things are just easier to pick up when you’re little.

8 million Australians vulnerable as JobKeeper and JobSeeker cuts loom

Last updated Wednesday, 9 September 2020

The government’s fiscal stimulus efforts have helped put a floor to Australia’s financial problems, but a fast approaching deadline will put households to the test.From 28 September, JobKeeper payments will be reduced from $1,500 a fortnight to $1,200 a fortnight for full-time workers and just $750 a fortnight for part-time workers. Meanwhile, an unemployed person on JobSeeker who is currently receiving $1,115.70 a fortnight will have their payment cut to $815.70.The JobKeeper and JobSeeker payments have been a much-needed lifeline for millions of Australians, with half of all recipients Mozo surveyed admitting the payments were keeping them financially afloat. But for many, the support measures have been less than adequate. One-third of respondents (33%) felt that the amount they are currently receiving is not enough to keep on top of their finances. The changes to payment rates from late September will only make things more difficult for this cohort. They will also be keenly felt across Victoria, where the prospect of an extended lockdown has renewed fears of widespread business closures. “More than one in four Australians currently receiving the government assistance say what they’re receiving is not enough to come and go on, painting a bleak picture for October onwards,” said Mozo Director, Kirsty Lamont.

Australia’s best savings accounts for 2020

Tuesday, 8 September 2020

If 2020 is the year you get savvier with your savings, then you’ve probably already begun your search for the best savings accounts around.

Your savings in 2020: Death by a thousand rate cuts

Friday, 4 September 2020

Interest rates on savings accounts and term deposits have plummeted in recent years. That won’t come as any surprise to the country’s long-suffering savers, but the sheer number of cuts that have been passed down by banks in the last six months might.

5 ways to future-proof your finances for the next 12 months

Thursday, 3 September 2020

Two-thirds of working Australians have had their employment affected by the Coronavirus, that’s according to research from Roy Morgan. Back in March there was a lot of uncertainty around how long the situation would last in Australia and how far reaching the effects would be.

Most Aussies plan to save their tax return. Here’s what to do with yours

Last updated Tuesday, 1 September 2020

As a grim economic outlook looms with nearly 1 in 10 Australians forecasted to be unemployed by December, it’s no surprise many are tightening their purse strings. The latest figures show most Aussies won’t be spending their 2020 tax return.ME Bank research released this week found that 58% of Aussies plan to add their tax return to savings, compared to 49% last year. There’s also been a switch in gears to more mindful spending. ME reveals a growing number of Aussies are looking to boost their financial position with their tax return, rather than splurge it on discretionary items. For instance, 21% intend to use the money on home loan repayments (up from 17% a year ago), while 18% want to invest it in shares or their super (up from 16%). But a small segment (22%) still plan to use their tax return on non-essentials like eating out, entertainment and travel - 1% lower than last year. These findings were based on surveys with 1,000 Australians in June 2020. The report comes as ANZ-Roy Morgan numbers released today indicate consumer confidence has dropped back down to 90.2 points (or 24.2 pts less than a year ago), following new COVID-19 outbreaks in NSW and Queensland. ME’s general manager of personal banking, Claudio Mazzarella said the current climate is propelling this shift from spending to saving.“The pandemic is clearly changing the financial habits of the nation. This survey illustrates how wary Australians are feeling in this economic climate,” he said.

September savings snapshot: Aussies get stung with more cuts ahead of spring

Tuesday, 1 September 2020

It’s been another painful month for savers, with interest cuts dominating all changes in the at-call deposits world.*This brings the average ongoing savings account rate to 0.63%, down 19 basis points from last month.Australian Unity’s Active Saver is now leading the interest rate ranks at 1.75%. It’s overtaken former headliners like 86 400 and Bank of Queensland, which respectively shaved off 10bp and 15bp from their top savings accounts. However, to access Australian Unity’s bonus rate, customers need to deposit at least $250 a month and not dip into the account at all. Interest reduces to 0.25% if either of these criteria are not satisfied, making this a less accessible option for anyone experiencing income or employment instability.

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