K64 Auxiliary Finance and Insurance Services

Opportunity for financial planners to gain trust

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Original article by Roy Morgan
Market Research Update – Page: Online : 1-Dec-17

The new 2017 edition of the Roy Morgan "Superannuation & Wealth Management in Australia" report has found financial planners need to gain a greater level of trust among Australians. Trust in financial planners for ethics and honestly has shown no real improvement since the survey began in 2009, declining by 2% points in the past 12 months to 25%, back to the 2009 level. The report suggests ongoing confusion about which financial planners offer independent advice may have a part to play in this issue. Despite low trust in the industry, those who purchase their superannuation through an independent financial planner/adviser are the most satisfied (71.3%). The next most satisfied group are those who purchased through an accountant, with a satisfaction level of 68.8% in the latest 12-month period.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Don’t quit party early: Quinton sees more gains

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Original article by David Rogers
The Australian – Page: 24 : 15-Nov-17

The benchmark S&P/ASX 200 fell below 6,000 points on 14 November, following a gain of seven per cent over the last five weeks. Peter Quinton of Bell Financial Group believes that the S&P/ASX 200 is trading at fair value, which suggests that investors should continue to buy equities. He adds that the local bourse’s attractive earnings per share growth forecast and its grossed-up dividend yield also support the case for equities. Although Quinton’s "bear market checklist" suggests that a correction of 10 per cent is likely, it should not be any larger than this and will create more buying opportunities.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEXBELL FINANCIAL GROUP LIMITED – ASX BFGSTANDARD AND POOR’S 500 INDEXWOODSIDE PETROLEUM LIMITED – ASX WPLROYAL DUTCH SHELL PLC

Shopping centres will survive peak Amazon

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Original article by Vesna Poljak
The Australian Financial Review – Page: 15 & 24 : 13-Nov-17

The Australian real estate investment trust sector has responded more proactively to the threat posed to retail trade by Amazon than many have given it credit for, according to Pete Davidson of BT Investment Management. REIT stocks currently favoured by BTIM include Westfield, Mirvac and Charter Hall, along with Arena and Folkestone, which both have interests in childcare centres. Other stocks that BTIM like include Precinct Properties and Vital Healthcare.

CORPORATES
AMAZON.COM INCORPORATED, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, WESTFIELD CORPORATION – ASX WFD, MIRVAC GROUP – ASX MGR, CHARTER HALL GROUP – ASX CHC, ARENA REIT – ASX ARF, FOLKESTONE LIMITED – ASX FLK, PRECINCT PROPERTIES, VITAL HEALTHCARE PROPERTY TRUST, MYER HOLDINGS LIMITED – ASX MYR, SCENTRE GROUP – ASX SCG, MITCHELL MONTAGU

ASX seven years behind the world

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Original article by Sally Patten
The Australian Financial Review – Page: 23 : 9-Nov-17

Morgan Stanley Wealth Management’s MD Matthew Koch has downplayed the significance of the S&P/ASX 200’s first close above 6,000 points in almost a decade. He argues that key overseas indices passed their pre-global financial crisis highs between 3-4 years ago. Morgan Stanley’s Christopher Bell adds that the Australian sharemarket’s limited earnings growth means the benchmark index is unlikely to reach its record high of 6,828.7 points for some time. Koch and his colleagues manage some $A1.5bn on behalf of 55 clients.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY WEALTH MANAGEMENT AUSTRALIA PTY LTD, STANDARD AND POOR’S 500 INDEX, NIKKEI 225 INDEX, FTSE 100 INDEX, EURO STOXX 50 INDEX, MERRILL LYNCH (AUSTRALIA) PTY LTD

Surge to 6000 puts GFC to rest

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Original article by David Rogers
The Australian – Page: 19 & 27 : 8-Nov-17

A number of factors contributed to the S&P/ASX 200’s rise above the 6,000-point level on 7 November 2017, including the Reserve Bank’s decision to leave the cash rate on hold, a rise in the iron ore price and a new record high for the S&P 500. The S&P/ASX 200 has taken nearly 10 years to reach 6,000 points again. Tony Brennan of Citigroup still expects it to reach 6,250 by mid-2018, while Hasan Tevfik of Credit Suisse forecasts that it will rise to 6,500 in 2018.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, LEHMAN BROTHERS INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Bulls to run all year but risks build for 2019

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Original article by David Rogers
The Australian – Page: 30 : 3-Nov-17

The S&P 500 has gained 15.2 per cent so far in 2017, while the S&P/ASX 200 has risen by just 4.7 per cent. They have gained 17 per cent and 8.5 per cent respectively when dividends are included. John Normand of JP Morgan expects equities to continue to rally in 2018, although he says the S&P 500 is likely to record growth in the low double-digits when dividends are taken into account. Meanwhile, he is bearish about the outlook for government bonds, and warns that there are a number of risk factors for global financial markets in 2019.

CORPORATES
STANDARD AND POOR’S 500 INDEX, STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AND COMPANY INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK, BANK OF JAPAN, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Future Fund’s Apple bite triples

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Original article by Vesna Poljak
The Australian Financial Review – Page: 15 : 31-Oct-17

The Commonwealth Bank, Westpac and the ANZ bank remained the top holdings of the Federal Government’s $A134.5bn Future Fund in 2016-17. National Australia Bank replaced Telstra as the sovereign wealth fund’s fourth-largest holding, while Apple rose from 86th to eighth position in the list of its top 100 holdings. New entrants to the list in 2016-17 include GGP, Amcor, Sydney Airport and JP Morgan.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, APPLE INCORPORATED, GGP INCORPORATED, AMCOR LIMITED – ASX AMC, SYDNEY AIRPORT – ASX SYD, JP MORGAN AND COMPANY INCORPORATED, AMP LIMITED – ASX AMP, EQUITY RESIDENTIAL PROPERTIES TRUST, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, MAGELLAN GLOBAL FUND, SCENTRE GROUP – ASX SCG, SAMSUNG ELECTRONICS COMPANY LIMITED, VISA INTERNATIONAL

Institutional investors buy back into rally

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Original article by David Rogers
The Australian – Page: 27 : 31-Oct-17

Australia’s S&P/ASX 200 index has gained 4.3 per cent so far in October, putting the local bourse on track for its best month since July 2016. Tony Brennan of Citigroup still expects the benchmark index to reach the 6,000-point level by the end of 2017. However, the market may face a number of headwinds. The S&P/ASX 200 Bank Index has risen by 3.5 per cent in October, but November is traditionally a bearish month for the sector. On the other hand, the resources sector is benefiting from the continued strength of commodity prices, while the growing prospect of tax cuts in the US should boost the earnings of companies with significant exposure to the US.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 BANKS INDEX

The most common question on Wall Street: when will rally end?

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Original article by Philip Baker
The Australian Financial Review – Page: 31 : 27-Oct-17

Australia’s benchmark S&P/ASX 200 Index has gained four per cent so far in 2017, and it has not ended a month in positive territory since April. Meanwhile, the major US indices have finished in the black every month except for March, and the S&P 500 has gained nearly 15 per cent in the year to date. Wall Street’s sustained rally has prompted speculation as to when it will end, but there are strong indications that the current bull run will extend beyond seven months.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, NASDAQ COMPOSITE INDEX, CLIME INVESTMENT MANAGEMENT LIMITED – ASX CIW, CITIGROUP INCORPORATED, EPFR GLOBAL

Brexit shut one door, opened another for Auscap

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Original article by Glenda Korporaal
The Australian – Page: 17 & 21 : 24-Oct-17

Auscap Asset Management, which was founded by Tim Carleton and Matthew Parker in 2012, boasts about $A450m worth of funds under management. Carleton says Auscap saw Britain’s vote to leave the European Union as an opportunity to buy several Australian stocks with exposure to the UK at a healthy discount to their pre-Brexit share price. Likewise, the firm capitalised on bearish sentiment toward retail stocks following the Federal Government’s 2014 Budget to buy oversold stocks in the sector.

CORPORATES
AUSCAP ASSET MANAGEMENT PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, ANSELL LIMITED – ASX ANN, JB HI-FI LIMITED – ASX JBH, CALEDONIA INVESTMENTS LIMITED, COTA CAPITAL, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD, COLONIAL FIRST STATE GROUP LIMITED, BLACK DOG INSTITUTE, VICTOR CHANG CARDIAC RESEARCH INSTITUTE LIMITED, MULTIPLE SCLEROSIS RESEARCH AUSTRALIA LIMITED, JUVENILE DIABETES RESEARCH FOUNDATION INTERNATIONAL