K64 Auxiliary Finance and Insurance Services

Millionaires roll shrinks by 5000

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Original article by Ruth Liew
The Australian Financial Review – Page: 19 : 15-Feb-16

Data from Investment Trends shows that Australia boasted 440,000 individuals whose investable assets topped $A1m at the end of October 2015. This compares with 445,000 in 2014, while the combined assets of the nation’s millionaires has fallen from $A1.57trn to $A1.55trn. Investment Trends’ Irene Guiamatsia notes that property and direct ownership of shares accounts for two-thirds of the investment portfolios of most high net worth individuals.

CORPORATES
INVESTMENT TRENDS PTY LTD, RESERVE BANK OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX

Property returns trounce shares

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Original article by Simon Evans
The Australian Financial Review – Page: 29 : 11-Feb-16

The Australian sharemarket has delivered a total return of 58 per cent over the last decade. However, residential property prices in Melbourne and Sydney have risen by 92 per cent over the same period. Domain Group’s chief economist Andrew Wilson does not expect the housing market to enjoy such gains in the next decade, warning that growth is likely to be much lower. Perpetual’s Matt Sherwood says equities investors should also expect lower growth in dividends in the near-term.

CORPORATES
DOMAIN.COM.AU, PERPETUAL LIMITED – ASX PPT, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

The ayes have it: companies wave goodbye to show-of-hands voting

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Original article by Andrew White
The Australian – Page: 21 : 10-Feb-16

The Australian Council of Superannuation Investors believes that companies should use a poll rather than the show-of-hands system to vote on resolutions at AGMs. It is estimated that about 20 per cent of Australia’s top 200 listed companies still use the traditional show-of-hands, although this methods is now used by less than 10 per cent of top-100 companies. Lobbying by TIAA-CREF has convinced many large companies that used a show-of-hands at their 2014 AGM to abandon the practice.

CORPORATES
AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, TEACHERS INSURANCE AND ANNUITY ASSOCIATION – COLLEGE RETIREMENT EQUITIES FUND, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIA. CORPORATIONS AND MARKETS ADVISORY COMMITTEE

Sevior digs resources again but wary of BHP

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Original article by Matthew Smith
The Australian Financial Review – Page: 15 & 20 : 10-Feb-16

Cash holdings account for some $A1bn worth of the $A5bn-plus investment portfolio of Airlie Funds Management at present. Founder John Sevior is keen to return to the equities market when valuations fall further, and Airlie could potentially be fully invested again by the end of 2016. Sevior intends to gain exposure to resources stocks, having shunned the sector since 2012, but he has ruled out buying BHP Billiton’s shares unless its progressive dividend policy is scrapped.

CORPORATES
AIRLIE FUNDS MANAGEMENT PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, ORIGIN ENERGY LIMITED – ASX ORG, SANTOS LIMITED – ASX STO, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DULUXGROUP LIMITED – ASX DLX, SUNCORP GROUP LIMITED – ASX SUN, PREMIER INVESTMENTS LIMITED – ASX PMV, HENDERSON GLOBAL INVESTORS LIMITED, HENDERSON GROUP PLC – ASX HGG, CALTEX AUSTRALIA LIMITED – ASX CTX, PERPETUAL INVESTMENTS

Goldman upbeat, we won’t get a recession

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 32 : 10-Feb-16

Modelling by investment bank Goldman Sachs suggests that there is a 25 per cent chance that developed economies will experience a recession in the next 12 months. This compares with the historical average of 28 per cent. The risk of Australia experiencing a recession is just 13 per cent, while the long-term average is 23 per cent. Goldman Sachs chief economist Jan Hatzius argues that the recent volatility in global financial markets presents an opportunity for risk-averse investors.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, TAILORED INVESTMENT SOLUTIONS PTY LTD, RESERVE BANK OF AUSTRALIA, MONTGOMERY INVESTMENT MANAGEMENT PTY LTD, WILSON ASSET MANAGEMENT

Growth, earnings fears depress ASX darlings

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 30 : 9-Feb-16

Australia’s benchmark S&P/ASX 200 Index has shed six per cent so far in 2016. However, some of the stocks that were among the best performers in 2015 have fallen by more than 10 per cent in 2016, including Domino’s Pizza Enterprises and Blackmores. In contrast, mining stocks – and gold producers in particular – have achieved some of the strongest gains in the year to date.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, BLACKMORES LIMITED – ASX BKL, SUPER RETAIL GROUP LIMITED – ASX SUL, NEWCREST MINING LIMITED – ASX NCM, NORTHERN STAR RESOURCES LIMITED – ASX NST, EVOLUTION MINING LIMITED – ASX EVN, SOUTH32 LIMITED – ASX S32, MINERAL RESOURCES LIMITED – ASX MIN, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, WINGATE ASSET MANAGEMENT PTY LTD, NASDAQ COMPOSITE INDEX, FACEBOOK INCORPORATED, AMAZON.COM INCORPORATED, NETFLIX INCORPORATED, LINKEDIN LIMITED, ASIA PACIFIC PRUDENTIAL SECURITIES

Pimco forecasts slow year but no recession

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 5-Feb-16

Mihir Worah and Geraldine Sundstrom of Pimco believe that the seven-year bull run is over and volatility will be a characteristic of financial markets in 2016. They also warn that investors can expect a period of lower returns, while the crude oil price is forecast to reach $US50 per barrel by the end of the year. Meanwhile, Pimco forecasts that the global inflation rate will rise to between 1.75 per cent and 2.25 per cent, although it has downplayed the prospect of a recession.

CORPORATES
PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, UNITED STATES. FEDERAL RESERVE BOARD

ASX loses $32b in worst day of 2016

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 26 : 4-Feb-16

The Australian sharemarket retreated on 3 February 2016, with the S&P/ASX 200 shedding 2.3 per cent to close at 4,876.8. A continued decline in the price of Brent crude oil weighed on energy stocks and reduced the market’s capitalisation by $A32bn. The Commonwealth Bank was 2.9 per cent lower at $A75.73, BHP Billiton eased 4.4 per cent to finish at $A14.27 and Liquefied Natural Gas fell 8.5 per cent to end the session at $A0.59.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, LIQUEFIED NATURAL GAS LIMITED – ASX LNG, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, KAROON GAS AUSTRALIA LIMITED – ASX KAR, DEUTSCHE BANK AG, MORGANS FINANCIAL LIMITED, BP PLC, EXXONMOBIL CORPORATION, STANDARD AND POOR’S CORPORATION, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, WORLD BANK, BANK OF JAPAN, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, HANG SENG INDEX, NIKKEI 225 INDEX, SHANGHAI COMPOSITE INDEX

Investor sentiment hits a record low

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Original article by Ruth Liew
The Australian Financial Review – Page: 16 : 3-Feb-16

A survey by Investment Trends has found that the average investor expects the Australian sharemarket to gain just 1.2 per cent in 2016. However, Recep Peker of Investment Trends notes that 33 per cent of investors still intend to invest in equities. The survey also shows that 70 per cent of respondents have identified the outlook for the Chinese economy as their biggest concern, while the potential for another global financial crisis or market crash was cited by 54 per cent.

CORPORATES
INVESTMENT TRENDS PTY LTD, HLB MANN JUDD, RESERVE BANK OF AUSTRALIA, HSBC HOLDINGS PLC, SHANGHAI COMPOSITE INDEX, CSI 300 INDEX

Reporting season ups and downs

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Original article by Philip Baker
The Australian Financial Review – Page: 34 : 2-Feb-16

Australia’s benchmark S&P/ASX 200 Index has shed five per cent so far in 2016, and share price performances are likely to come under scrutiny during the February reporting season. Matt Ross of Goldman Sachs says price-earnings multiples are five per cent lower than they were in the lead-up to the August 2015 reporting season. He adds that growth in earnings-per-share is now at its lowest level since the global financial crisis.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BEGA CHEESE LIMITED – ASX BGA, COLES GROUP LIMITED, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, MG UNIT TRUST – ASX MGC, REA GROUP LIMITED – ASX REA, ISENTIA GROUP LIMITED – ASX ISD, RAMSAY HEALTH CARE LIMITED – ASX RHC, CSL LIMITED – ASX CSL, CARSALES.COM LIMITED – ASX CAR, SEEK LIMITED – ASX SEK, ARB CORPORATION LIMITED – ASX ARB, TATTS GROUP LIMITED – ASX TTS, QUBE HOLDINGS LIMITED – ASX QUB, IRESS LIMITED – ASX IRE, PREMIER INVESTMENTS LIMITED – ASX PMV, HEALTHSCOPE LIMITED – ASX HSO, TABCORP HOLDINGS LIMITED – ASX TAH, TRADE ME GROUP LIMITED – ASX TME, BRAMBLES LIMITED – ASX BXB, MYOB GROUP LIMITED – ASX MYO, WESFARMERS LIMITED – ASX WES, SELECT HARVESTS LIMITED – ASX SHV, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, JB HI-FI LIMITED – ASX JBH, SONIC HEALTHCARE LIMITED – ASX SHL, VOCUS COMMUNICATIONS LIMITED – ASX VOC, CHALLENGER LIMITED – ASX CGF, MONADELPHOUS GROUP LIMITED – ASX MND