Magellan’s new whale rebuffs LICs for trust

August 10, 2017roymorgansocial Leave a comment

Original article by Vesna Poljak
The Australian Financial Review – Page: 15 & 20 : 10-Aug-17

The Magellan Global Trust will seek to achieve an annual cash yield of four per cent. The trust, which is being listed by Magellan Financial Group, will be similar in structure to a real estate investment trust, although it will primarily invest in international shares. This investment trust model is widely used in the UK, although the listed investment company model tends to be favoured in Australia. The new trust is expected to have between 250,000 and 300,000 underlying investors.

CORPORATES
MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, MAGELLAN GLOBAL TRUST, CRICKET AUSTRALIA

World shrugs off Dow high

August 4, 2017roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 19 & 31 : 4-Aug-17

Sharemarkets in Australia and Asia closed lower on 3 August, despite the Dow Jones Industrial Average reaching the 22,000-point milestone. The Dow Jones has gained 20 per cent since the US presidential election in November 2016, and much of this can be attributed to a rise in stocks that have exposure to global economic growth. However, the upbeat sentiment on Wall Street has not been reflected by the Dow Jones Transportation Average Index, which has fallen close to its 200-day moving average. A significant divergence between the two indices has often signalled a pullback in the past.

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, DOW JONES TRANSPORTATION AVERAGE INDEX, SUNDIAL CAPITAL RESEARCH INCORPORATED, EDWARD JONES AND COMPANY, CMC MARKETS PTY LTD, STANDARD AND POOR’S 500 INDEX, APPLE INCORPORATED, BOEING COMPANY, McDONALD’S CORPORATION, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, KOSPI INDEX, STANDARD AND POOR’S ASX 200 INDEX, RIO TINTO LIMITED – ASX RIO, SUNCORP GROUP LIMITED – ASX SUN

Sharemarket’s worst July for six years cements investor gloom

August 1, 2017roymorgansocial Leave a comment

Original article by Philip Baker
The Australian Financial Review – Page: 35 : 1-Aug-17

Australia’s benchmark S&P/ASX 200 Index defied the medium-term trend to lose ground in July 2017. Since 2000, the index has gained an average of 1.3 per cent in July, but its underperformance over the last month means it has finished in the red for the last three months. The S&P/ASX 200 met with resistance at the 5,700-point level in July, and indeed in the last several months. The Australian market remains about 16 per cent below its peak prior to the global financial crisis, while key US share price indices are at record highs.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, NASDAQ COMPOSITE INDEX, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, BELL POTTER SECURITIES LIMITED, BHP BILLITON LIMITED – ASX BHP, CSL LIMITED – ASX CSL, TELSTRA CORPORATION LIMITED – ASX TLS, ARISTOCRAT LEISURE LIMITED – ASX ALL, AMCOR LIMITED – ASX AMC, MACQUARIE GROUP LIMITED – ASX MQG, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

China pullback won’t dent local M&A

July 31, 2017roymorgansocial Leave a comment

Original article by Joyce Moullakis
The Australian Financial Review – Page: 20 : 31-Jul-17

Data from Dealogic shows that $US40.7bn ($A50.9bn) worth of mergers and acquisitions involving Australian companies have been announced so far in 2017. Minter Ellison partner Alberto Colla expects Japanese corporate raiders to continue to target local companies following a number of deals over the last 18 months. The law firm anticipates that US and Canadian companies will also be key drivers of M&A activity in Australia, particularly if Chinese deal-making is affected by China’s new regulations on financial outflows.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, MINTER ELLISON, TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, BRADKEN LIMITED, HITACHI CONSTRUCTION MACHINERY COMPANY LIMITED, ASG GROUP LIMITED, NOMURA RESEARCH INSTITUTE, PROGRAMMED MAINTENANCE SERVICES LIMITED – ASX PRG, PERSOL, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, DOWNER EDI LIMITED – ASX DOW, VOCUS GROUP LIMITED – ASX VOC, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, CORNERSTONE RESEARCH GROUP, STANFORD UNIVERSITY, KATANA ASSET MANAGEMENT LIMITED, SLATER AND GORDON LIMITED – ASX SGH, QUINDELL PLC, CIMIC GROUP LIMITED – ASX CIM

Small caps ‘offer best opportunity’

July 27, 2017roymorgansocial Leave a comment

Original article by James Frost
The Australian Financial Review – Page: 24 : 27-Jul-17

Allan Gray Australia’s Simon Mawhinney is upbeat about the outlook for small-capitalisation stocks, forecasting that they are set to outperform their larger peers. Smaller Australian companies have tended to have lower returns over the last several decades, but Mawhinney expects non-S&P/ASX 100 companies to outperform over the next five years. Allan Gray particularly likes stocks such as Capral, Mineral Deposits and HT&E.

CORPORATES
ALLAN GRAY AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 100 INDEX, CAPRAL LIMITED – ASX CAA, MINERAL DEPOSITS LIMITED – ASX MDL, HT&E LIMITED – ASX HT1, ALUMINA LIMITED – ASX AWC, WOODSIDE PETROLEUM LIMITED – ASX WPL, NEWCREST MINING LIMITED – ASX NCM, ORIGIN ENERGY LIMITED – ASX ORG, METCASH LIMITED – ASX MTS, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, STANDARD AND POOR’S ASX 300 ACCUMULATION INDEX

Small miners, pot stocks dominate IPOs

July 26, 2017roymorgansocial Leave a comment

Original article by James Frost
The Australian Financial Review – Page: 22 : 26-Jul-17

The materials sector accounted for 15 of the 57 companies that debuted on the Australian sharemarket in the first half of 2017. They included five gold stocks and three lithium hopefuls. Marcus Ohm of HLB Mann Judd notes that IPOs raised $A1.9bn in total during the first half, compared with $A2.5bn in the first half of 2016 (from 34 IPOs). The majority of IPOs in the year to date have been worth less than $A100m. Meanwhile, the number of "back-door" listings fell from 69 to just 10.

CORPORATES
HLB MANN JUDD, OFFICEWORKS SUPERSTORES PTY LTD, WESFARMERS LIMITED – ASX WES, THE GOOD GUYS, JB HI-FI LIMITED – ASX JBH

Looking to profits to solve economy’s jumbled puzzle

July 25, 2017roymorgansocial Leave a comment

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

July 24, 2017roymorgansocial Leave a comment

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

July 14, 2017roymorgansocial Leave a comment

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

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