🦘 Aussie Retirement Dreams Fading, Young Aussies Face Increasing Credit Risk, Betashares Secures Game-Changing Investment

G’day everyone!

Here’s what we’ve got in store for you today:

• Aussie Retirement Dreams Fading

• Young Aussies Face Increasing Credit Risk

• Betashares Secures Game-Changing Investment

Let’s have a look at the market snapshot before jumping into the news:

Golden Years on Hold? Retirement Dreams Fading for Many Aussies

Australians might need to rethink those retirement plans, as new data exposes some hard truths.

Working mum Jodie Imam is one of many who no longer see traditional retirement as achievable. “I don't see myself having this big amount of money to be able to retire with," she said.

Instead, she's focusing on balancing work and life indefinitely.

This sentiment is echoed by a Vanguard survey, which reveals that one in three working Aussies anticipate paying off a mortgage well into their retirement.

Alarmingly, one in five retirees are already renting, and a whopping four out of five worry about outliving their savings.

Daniel Shrimski from Vanguard breaks down the misconception: many Australians expect to be homeowners and debt-free by retirement but may end up relying heavily on savings.

Dr. Liz Allen from ANU also warns that this trend could strain government resources, hinting at a potential crisis.

Adding to the mix, 40% of Australians lack a retirement plan altogether.

Instead of Googling for answers, Shrimski advises tapping into super funds and financial advisors for solid planning.

For many, it seems retirement might just be a perpetual balancing act between work and life.

Defaulting in Your 20s: Young Aussies at High Risk

Credit default risk among Australians under 30 is shooting up faster than any other age group, according to the latest analysis from credit bureau illion.

The first quarter of this year saw default risk for those under 25 spike by 2.5%, while those in the 26-30 bracket saw a 2% increase. In stark contrast, the 41-50 crowd actually saw their risk dip by nearly 1%, with no change for those over 50.

So why are young folks feeling the pinch?

Rising rents, high-interest rates on personal loans, and the relentless cost-of-living pressures are hitting wallets hard.

Hasseldine from illion notes that since most under-30s are renters with few assets, they're more vulnerable to these financial strains.In fact, rents alone have jumped 12% from a year ago.

Add to that a grim underemployment rate for youth - surging to 15.7% from 14.8% - and it's clear: young Aussies are in a tough spot.

Default risk by state paints a worrying picture too, with Western Australia and NSW experiencing the highest increases.

illion warns that this credit stress among the young could spell trouble for the economy, potentially leading to a downturn by late 2024.

So, young adults might want to brace themselves and budget smart, because the financial storm clouds don't seem to be parting anytime soon.

Temasek's A$300 Million Bet on Australian ETF Giant Betashares

Singapore's investment powerhouse Temasek Holdings is making waves down under with a planned investment of up to A$300 million in Betashares, one of Australia's leading exchange-traded fund (ETF) managers.

This hefty injection of funds, announced on June 17, is set to propel Betashares' expansion efforts both locally and internationally.

With this infusion, Temasek will gain an undisclosed minority stake, rubbing shoulders with existing shareholders like Betashares' staff and private equity firm TA Associates.

The Australian ETF market is booming, clocking in at A$177.5 billion in 2023, thanks to a solid net inflow of A$15 billion.

Riding this wave, Betashares currently manages over A$38 billion in assets and caters to over a million Aussie investors.

Betashares CEO Alex Vynokur is all smiles, highlighting that Temasek’s investment will turbocharge their growth agenda through both organic expansion and strategic acquisitions.

Temasek’s portfolio, worth an eye-watering S$382 billion, already features heavy-hitters like Alibaba, DBS Group, and Tencent.

With a track record like that, Betashares is in stellar company.

This partnership looks set to be a game-changer for both the firms and the Aussie ETF landscape.

Investor Loses Court Battle Over Sleeping Duck Drama

Grab your popcorn because this startup saga has all the drama!

Dr. Adir Shiffman, the angel investor who revived e-commerce mattress company Sleeping Duck, just lost his Supreme Court case against the company's founders.

Shiffman alleged he faced unfair treatment and was frozen out from selling his shares.

The chair of sports-tech company Catapult, Shiffman exercised his 10% options for $100,000 in 2020 and received a sweet $2.14 million in dividends.

He got 10,000 additional options in 2020, boosting his potential stake to 20% - until dilution hit due to new share issuances.

Shiffman accused founders Selvam Sinnappan and Winston Wijeyeratne of rejecting a $60 million loan note deal that could've been a game-changer.

Last March, he tried to offload his stake for $56 million, but the founders deemed the offer "excessive, unrealistic, and uncommercial."

During the trial, Shiffman painted a picture of initial success followed by a plunge as the pandemic dust settled. Valuations supported the downturn: from a 2020 high of $462 million to under $101 million in late 2021.

Justice Delany dismissed all claims, including Shiffman's "oppression" allegations, and denied his buy-out request.

Sinnappan welcomed the verdict, relieved that the court saw through to their fair practices.

So, there you have it—an investor-turned-legal thriller with a verdict that underscores the unpredictable nature of startup investments.

You Made It!

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Time to go to work and show off how clued up you are about what’s going on in the business world 💪

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