K64 Auxiliary Finance and Insurance Services

Looking to profits to solve economy’s jumbled puzzle

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Original article by Vesna Poljak
The Australian Financial Review – Page: 15 & 20 : 25-Jul-17

PM Capital’s Uday Cheruvu says the August 2017 earnings season will be more important than usual given that business confidence seems to be improving but consumer confidence remains subdued. Cheruvu adds that capital expenditure intentions will also be a key metric in the upcoming reporting season, suggesting that building materials group in particular may increase capex. Meanwhile, Goldman Sachs says companies whose earnings could exceed expectations include BlueScope Steel, Crown Resorts, Telstra and South32.

CORPORATES
PM CAPITAL LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, BLUESCOPE STEEL LIMITED – ASX BSL, CROWN RESORTS LIMITED – ASX CWN, TELSTRA CORPORATION LIMITED – ASX TLS, SOUTH32 LIMITED – ASX S32, BRAVURA SOLUTIONS LIMITED.- ASX BVS, COSTA GROUP HOLDINGS LIMITED – ASX CGC, SKYCITY ENTERTAINMENT GROUP LIMITED – ASX SKC, COCA-COLA AMATIL LIMITED – ASX CCL, MEDIBANK PRIVATE LIMITED – ASX MPL, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, CITIGROUP PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, MYER HOLDINGS LIMITED – ASX MYR, ADAIRS LIMITED – ASX ADH, CREDIT SUISSE (AUSTRALIA) LIMITED, CYAN INVESTMENT MANAGEMENT PTY LTD, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, UNITED STATES. FEDERAL RESERVE BOARD, RIO TINTO LIMITED – ASX RIO, RESMED INCORPORATED – ASX RMD, SUNCORP GROUP LIMITED – ASX SUN, TABCORP HOLDINGS LIMITED – ASX TAH

Pressure mounts on hedge funds over fees

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Original article by James Thomson
The Australian Financial Review – Page: 20 : 24-Jul-17

Investors in hedge funds are seeking a better deal on fees, as well as more flexible fee structures, according to a survey by Credit Suisse. The survey, which encompassed upwards of 200 corporate investors, also found that just under 90 per cent of investors who had withdrawn monies from poorly performing hedge funds intended to reinvest in the sector, and that 57 per cent of hedge funds envisage at least a "moderate" increase in their allotment to quantitative strategies.

CORPORATES
CREDIT SUISSE AG

Active management still delivers: Ophir

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Original article by Damon Kitney
The Australian – Page: 20 : 14-Jul-17

Ophir Asset Management’s co-founders Andrew Mitchell and Steven Ng are upbeat about the outlook for active fund managers. They argue that the active investment style is more effective at picking stocks that offer good value, as passive managers tend to allocate capital to sectors based on a market’s weightings. Ophir’s Opportunities Fund has achieve a total return of 352.2 per cent since it was established, while the Ophir High Conviction Fund has returned 62.5 per cent since inception.

CORPORATES
OPHIR ASSET MANAGEMENT PTY LTD, UNISUPER LIMITED, COLONIAL FIRST STATE GROUP LIMITED, STANDARD AND POOR’S ASX 20 INDEX

Overreaction presents chance to buy on dip

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Original article by David Rogers
The Australian – Page: 27 : 13-Jul-17

Australia’s benchmark S&P/ASX 200 Index reached an intra-day low of 5,665.6 points on 12 July 2017, before closing one per cent lower. The domestic bourse has shed 0.8 per cent so far in July, which may be a timely opportunity for investors to buy into the market. Meanwhile, although investors remain concerned about the political risk associated with US President Donald Trump, Citigroup believes that impeachment is unlikely despite the revelations concerning a meeting between Trump’s son and a Russian lawyer.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, REPUBLICAN PARTY (UNITED STATES)

Global bull market still charging ahead

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Original article by Myriam Robin
The Australian Financial Review – Page: 15 & 20 : 7-Jul-17

Sentiment among Wall Street’s sell-side equity analysts rose by 2.4 per cent to a five-year high of 56.4 in June 2017, according to Bank of America Merrill Lynch. Australian fund managers are also upbeat about the outlook for shares. AMP’s Shane Oliver notes that the long-running global bull market is unlikely to be affected when major central banks begin to increase interest rates. Citigroup also believes that the bull run will continue, with just two of its 18 risk indicators pointing to a bear market in the near-term.

CORPORATES
BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, AMP LIFE LIMITED, CITIGROUP INCORPORATED, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIANSUPER PTY LTD, PERPETUAL INVESTMENTS, MORGAN STANLEY AND COMPANY INCORPORATED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED STATES. FEDERAL RESERVE BOARD

New financial year ‘reset’ for investors

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Original article by Myriam Robin
The Australian Financial Review – Page: 27 : 4-Jul-17

Australia’s S&P/ASX 200 shed 3.4 per cent in May 2017 and 0.1 per cent in June, due to factors such as tax-loss selling in the lead-up to the end of the financial year. Ophir Asset Management’s Andrew Mitchell is upbeat about the outlook for local equities in July, noting that fund managers will begin reweighting their portfolios. Institutional investors may also buy into stocks prior to the reporting season in August.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, OPHIR ASSET MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, TPG TELECOM LIMITED – ASX TPM, ACONEX LIMITED – ASX ACX, SANTOS LIMITED – ASX STO, APN OUTDOOR GROUP LIMITED – ASX APO, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, AVEO GROUP – ASX AOG

Will the RBA join the global rates party?

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Original article by Timothy Moore
The Australian Financial Review – Page: 20 : 3-Jul-17

Futures pricing suggest that the Australian sharemarket will be bolstered by a positive lead from Wall Street when trading resumes on 3 July. The Reserve Bank’s monetary policy meeting will be a key focus for investors in coming days, although the cash rate is expected to be left on hold in July. Meanwhile, Australian retail sales, building approvals and trade data will be released during the next week.

CORPORATES
RESERVE BANK OF AUSTRALIA, DOW JONES INDUSTRIAL AVERAGE INDEX, UNITED STATIONERS, EUROPEAN CENTRAL BANK, NIKE INCORPORATED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CAPITAL ECONOMICS LIMITED

Calling a truce in the fund war

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Original article by David Rogers
The Australian – Page: 17 & 20 : 3-Jul-17

The issue of active versus passive fund managers attracts considerable debate in Australia. However, BetaShares MD Alex Vynokur argues that the focus for fund managers should be on acting in the best interests of clients rather than the merits of each investment strategy. He notes that many active funds charge high fees while failing to deliver strong returns. BetaShares’ exchange-traded funds feature low fees and have a proven track record for good returns.

CORPORATES
BETASHARES CAPITAL LIMITED, BETASHARES FTSE RAFI AUSTRALIA 200 ETF – ASX QOZ, S&P DOW JONES INDICES LLP

Domestic woes to weigh on stocks

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Original article by Myriam Robin
The Australian Financial Review – Page: 24 : 30-Jun-17

Australia’s S&P/ ASX200 index has gained 10.8 per cent in 2016-17, with resources stocks generally performing well while defensive stocks have disappointed. JP Morgan Asset Management’s Kerry Craig notes that some stocks have failed to match their first-half performance in the second half of the financial year. He adds that sector-specific issues and the Australian economy are likely to weigh on the sharemarket in 2017-18.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN ASSET MANAGEMENT INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, TELSTRA CORPORATION LIMITED – ASX TLS, WESTFIELD CORPORATION – ASX WFD, WHITEHAVEN COAL LIMITED – ASX WHC, THE A2 MILK COMPANY LIMITED – ASX A2M, BLUESCOPE STEEL LIMITED – ASX BSL, QANTAS AIRWAYS LIMITED – ASX QAN, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, DEUTSCHE BANK AG

Tech boom still has long way to run, says disruption fund

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Original article by James Frost
The Australian Financial Review – Page: 34 : 27-Jun-17

Evans & Partners’ executive chairman David Evans says digital disruption will affect sectors such as banking, insurance, health and retailing. Evans & Partners aims to capitalise on this with the launch of a global disruption fund, which will invest in US technology stocks such as Apple and Netflix, as well as Chinese technology stocks. The new fund will have an annual fee of 128 basis points and aims to initially raise $A100m from investors.

CORPORATES
EVANS AND PARTNERS PTY LTD, APPLE INCORPORATED, NETFLIX INCORPORATED, FACEBOOK INCORPORATED, ACTIVISION BLIZZARD INCORPORATED, ALIBABA GROUP HOLDING LIMITED, BAIDU.COM INCORPORATED, TENCENT HOLDINGS LIMITED, NETEASE.COM INCORPORATED, ALPHABET INCORPORATED, AMAZON.COM INCORPORATED, MICROSOFT CORPORATION, ZILLOW.COM, PAYPAL INCORPORATED, MASTERCARD INTERNATIONAL INCORPORATED, VISA INTERNATIONAL, MAGELLAN ASSET MANAGEMENT PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, GOOGLE INCORPORATED, REA GROUP LIMITED – ASX REA, CARSALES.COM LIMITED – ASX CAR, TELSTRA CORPORATION LIMITED – ASX TLS, SEEK LIMITED – ASX SEK, WESFARMERS LIMITED – ASX WES