K64 Auxiliary Finance and Insurance Services

Finding the best return in a low-return world

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 17-May-16

Research by Societe Generale’s global asset allocation strategy team has concluded that investors can expect an annualised total return of 5-7 per cent from the majority of developed equity markets in the medium- to long-term. The research also suggests that emerging market equities and bonds are likely to deliver the best returns, with Societe Generale preferring bonds issued by India. However, the group says Australian investors should favour shares rather than bonds.

CORPORATES
SOCIETE GENERALE SA

Companies need to come up with growth strategies

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 13-May-16

Many Australian-listed companies have prioritised dividend yields in recent years, rather than investing in growth strategies. However, Macquarie Securities’ Jason Todd believes that investors are poised to reward companies that pursue growth via strategies such as acquisitions and capital expenditure. He identifies a number of stocks that could benefit from a growth strategy, including Transurban Group, Wesfarmers, Amcor, Carsales.com, CSL and Orora.

CORPORATES
MACQUARIE SECURITIES PTY LTD, TRANSURBAN GROUP LIMITED – ASX TCL, WESFARMERS LIMITED – ASX WES, AMCOR LIMITED – ASX AMC, CARSALES.COM LIMITED – ASX CAR, CSL LIMITED – ASX CSL, ORORA LIMITED – ASX ORA, ASCIANO LIMITED – ASX AIO, ASX LIMITED – ASX ASX, WOOLWORTHS LIMITED – ASX WOW, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, SEEK LIMITED – ASX SEK, INCITEC PIVOT LIMITED – ASX IPL, TREASURY WINE ESTATES LIMITED – ASX TWE, RAMSAY HEALTH CARE LIMITED – ASX RHC

Nikkei, banks rally lifts ASX to a 2016 high

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 26 : 11-May-16

The Australian sharemarket posted solid gains on 10 May 2016, with the S&P/ASX 200 adding 0.4 per cent to close at 5,342.8, which is its highest level for the year to date. The Commonwealth Bank was 2.9 per cent higher at $A78 and Qantas advanced 2.4 per cent to end the session at $A3.41. However, Rio Tinto eased 2.9 per cent to finish at $A45.40 and Sims Metal Management shed 10.1 per cent to close at $A8.45.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, QANTAS AIRWAYS LIMITED – ASX QAN, RIO TINTO LIMITED – ASX RIO, SIMS METAL MANAGEMENT LIMITED – ASX SGM, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, WOODSIDE PETROLEUM LIMITED – ASX WPL, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, TELSTRA CORPORATION LIMITED – ASX TLS, SCENTRE GROUP – ASX SCG, LEND LEASE GROUP LIMITED – ASX LLC, VICINITY CENTRES – ASX VCX, INCITEC PIVOT LIMITED – ASX IPL, BLUESCOPE STEEL LIMITED – ASX BSL, MORGANS FINANCIAL LIMITED, IG MARKETS LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, NIKKEI 225 INDEX

Investors to get lead on smart play for May

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 3-May-16

The Australian sharemarket gained 3.3 per cent in April 2016, but historical analysis shows that it has lost ground in the month of May in six of the last eleven years. A number of factors may influence the direction of the sharemarket in May, including the release of interim financial results in the banking sector, the outlook for commodity prices and the outcome of the Reserve Bank’s monthly monetary policy meeting.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, STANDARD AND POOR’S ASX 200 INDEX, RIVKIN SECURITIES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WATERMARK FUNDS MANAGEMENT PTY LTD

IPOs reward wary investors

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Original article by Michael Bennet
The Australian – Page: 20 : 26-Apr-16

Some 13 companies debuted on the Australian sharemarket in the March 2016 quarter, with a total capitalisation of $A796m. A report from Deloitte notes that the 12 IPOs during the same period in 2015 were worth a combined $A754m. Meanwhile, new IPOs in the first quarter of 2016 posted an average gain of 7.6 per cent, while the benchmark S&P/ASX 200 shed four per cent. Afterpay, StatePlus and Reliance Worldwide Corporation are among the companies that are currently considering an IPO.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, STANDARD AND POOR’S ASX 200 INDEX, AFTERPAY HOLDINGS LIMITED – ASX AFY, STATEPLUS, RELIANCE WORLDWIDE CORPORATION LIMITED – ASX RWC, BRAVURA SOLUTIONS LIMITED, SCOTTISH PACIFIC BUSINESS FINANCE PTY LTD, FASTACASH, CAMPERDOWN DAIRY INTERNATIONAL, DICK SMITH HOLDINGS LIMITED – ASX DSH, DEALOGIC (AUSTRALIA) PTY LTD, ONEVIEW HEALTHCARE PLC – ASX ONE, DING SHENG XIN FINANCE COMPANY LIMITED – ASX DXF, WISETECH GLOBAL LIMITED – ASX WTC, GLOBAL FORTUNE INVESTMENT LIMITED – ASX GFI, JC INTERNATIONAL GROUP LIMITED – ASX JCI, CADENCE ASSET MANAGEMENT PTY LTD, CITIBANK PTY LTD, THOMSON REUTERS PLC, McGRATH LIMITED – ASX MEA, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO

Banks, property still the top investment picks

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Original article by Simon Evans
The Australian Financial Review – Page: 30 : 20-Apr-16

The Australian sharemarket has been trading within a range of 4,900 to 5,200 points in recent months. However, VISIS Private Wealth’s Chris Smith argues that investors should be focusing on the outlook for the market in the next 3-5 years, rather than its short-term performance. Smith says the nation’s four major banks should achieve good returns over the longer-term, while he is also upbeat about the long-term outlook for the residential and commercial property markets.

CORPORATES
VISIS PRIVATE WEALTH, STEPHAN STRATEGIC, RMIT UNIVERSITY, 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

Executives retain appetite for deals

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 15 : 18-Apr-16

A new report by law firm Herbert Smith Freehills and the research division of the Financial Times shows that takeovers remain on the agenda for many companies. The survey of senior executives found that 75 per cent of respondents who are based in Australia expect to pursue mergers and acquisitions in the next three years, although only 33 per cent expect to make acquisitions that will boost group revenue by at least five per cent.

CORPORATES
HERBERT SMITH FREEHILLS PTY LTD, FINANCIAL TIMES GROUP, DEALOGIC (AUSTRALIA) PTY LTD, ASCIANO LIMITED – ASX AIO, CBH LIMITED, INTRALINKS INCORPORATED

ASX ‘likely’ to choose a local chief executive

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Original article by Jessica Gardner, Ruth Liew
The Australian Financial Review – Page: 23 : 15-Apr-16

ASX Limited has posted a statutory profit of $A317.4m for the first nine months of 2015-16, which is 6.2 per cent higher than previously. The stock exchange operator will shortly appoint an executive search firm to find a successor to CEO Elmer Funke Kupper. ASX chairman Rick Holliday-Smith says the highly regulated nature of the Australian market means a local candidate will probably be preferred, but he has not ruled out an offshore hire if they have the right skills and experience.

CORPORATES
ASX LIMITED – ASX ASX, RUSSELL REYNOLDS ASSOCIATES INCORPORATED, RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Hard-charging miners push ASX over 5000

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 28 : 14-Apr-16

The Australian sharemarket rallied on 13 April 2016, with the S&P/ASX 200 adding 1.6 per cent to close at 5,054.7. The Commonwealth Bank was 2.1 per cent higher at $A73.73 and BHP Billiton rose six per cent to end the session at $A17.92. Fortescue Metals Group rose 7.7 per cent to finish at $A3.19 and Bellamy’s Australia advanced 5.5 per cent to close at $A9.37.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, TELSTRA CORPORATION LIMITED – ASX TLS, BLACKMORES LIMITED – ASX BKL, MORGANS FINANCIAL LIMITED, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, STANDARD AND POOR’S 500 INDEX, TOKYO STOCK PRICE INDEX

Markets have gone a bit too quiet for some

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Original article by Vesna Poljak
The Australian Financial Review – Page: 26 : 1-Apr-16

Global financial market volatility has declined, as measured by the Chicago Board Options Exchange’s "fear index". However, Escala Partners’ Giselle Roux cautions investors to expect further volatility. She anticipates mixed fortunes in the upcoming US profit reporting season, while other factors that may weigh on market sentiment include the US presidential election and a UK referendum on staying in the European Union. Australia’s benchmark S&P/ASX 200 shed four per cent during the March 2016 quarter, or one per cent in US dollar terms.

CORPORATES
CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, ESCALA PARTNERS LIMITED, STANDARD AND POOR’S ASX 200 INDEX, DEUTSCHE BANK AG, GROUP OF TWENTY (G-20), UNITED STATES. FEDERAL RESERVE BOARD, BELL POTTER SECURITIES LIMITED