ASSET ALLOCATION – AUSTRALIA

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

Junior miners ripe for picking, says Lanstead

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Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 30-Mar-16

British fund manager Lanstead Investors aims to invest about $A300m in Australian-listed stocks over the next several years. Its portfolio currently comprises about $A50m worth of Australian shares, and co-founder Greg Kofford is bullish about local resources groups. He believes that smaller resources companies in particular offer good value at present. Lanstead director Andrew Sparke notes that lack of access to capital has forced many smaller miners to shelve quality projects.

CORPORATES
LANSTEAD INVESTORS PTY LTD, WESTERN MINING NETWORK LIMITED – ASX WMN, CARBINE TUNGSTEN LIMITED – ASX CNQ, MUSTANG RESOURCES LIMITED – ASX MUS, LITHIUM AUSTRALIA NL – ASX LIT, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Deutsche tips value stocks to outperform

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Original article by Jessica Sier
The Australian Financial Review – Page: 31 : 15-Mar-16

Australian equities with high price-earnings ratios have significantly outperformed the broader sharemarket in the last several years. However, Deutsche Bank says investors should consider buying into value stocks, forecasting that they are set to deliver the best returns. Deutsche Bank favours stocks such as Boral, Harvey Norman, Flight Centre Travel Group and AGL Energy.

CORPORATES
DEUTSCHE BANK AG, BORAL LIMITED – ASX BLD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, AGL ENERGY LIMITED – ASX AGL, FORAGER FUNDS MANAGEMENT PTY LTD, WHITEHAVEN COAL LIMITED – ASX WHC, SOUTH32 LIMITED – ASX S32, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, COCHLEAR LIMITED – ASX COH, TREASURY WINE ESTATES LIMITED – ASX TWE, CSL LIMITED – ASX CSL, REA GROUP LIMITED – ASX REA, RAMSAY HEALTH CARE LIMITED – ASX RHC

Investors advised to widen stocks horizons

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 4-Mar-16

The Australian sharemarket has shed five per cent so far in 2016, with the market volatility adversely affecting exchange-traded funds in particular. However, experts say investors who use an active investment strategy can diversify their portfolios by gaining exposure to passive investment options such as exchange-traded funds. The Market Vectors Gold Miners ETF has delivered the best performance among such funds in the year-to-date.

CORPORATES
MARKET VECTORS GOLD MINERS ETF – ASX GDX, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 300 INDEX, MORNINGSTAR PTY LTD, BETASHARES CAPITAL LIMITED, ISHARES INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BETASHARES AUSTRALIAN EQUITIES STRONGBEARHEDGEFUND – ASX BBO, MARKET VECTORS CHINAMC A-SHARE ETF – ASX CET, STANDARD AND POOR’S 500 INDEX, PROTEGE FUNDS LLC, VANGUARD S&P 500 ADMIRAL INDEX FUND

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

Future Fund shifts to 20pc cash weighting as global risks grow

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 15 & 18 : 28-Jan-16

The Australian Government’s Future Fund reduced its investment portfolio’s equities holdings from 39 per cent to 31 per cent in 2015. The fund has in turn lifted its exposure to cash holdings to around 20 per cent, or $A24.4bn. CEO David Neal says the fund has taken into account the high-risk global environment and the low yields that currently prevail. The fund posted a return of 8.4 per cent for calendar 2015, although its return for the second half was one per cent.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, CHANT WEST FINANCIAL SERVICES PTY LTD

AFIC hunts for quality mid-cap investments

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Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 21-Jan-16

The Australian Foundation Investment Company has posted a 2015-16 interim profit of $A145.5m, which is 10.3 per cent higher than previously. The listed investment company’s revenue was 7.2 per cent higher at $A156.6m, although its investment portfolio generated a loss of 1.3 per cent for the half-year. The group has reduced its exposure to large banks and retailers, and increased its holdings of stocks such as Qube Holdings, Suncorp Group and Treasury Wine Estates.

CORPORATES
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, QUBE HOLDINGS LIMITED – ASX QUB, SUNCORP GROUP LIMITED – ASX SUN, TREASURY WINE ESTATES LIMITED – ASX TWE, HEALTHSCOPE LIMITED – ASX HSO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, CHALLENGER LIMITED – ASX CGF, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MAINFREIGHT LIMITED, INTEGRAL DIAGNOSTICS LIMITED – ASX IDX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, OIL SEARCH LIMITED – ASX OSH, SANTOS LIMITED – ASX STO, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, UNITED STATES. FEDERAL RESERVE BOARD

Ausbil’s Xiradis sees value in bank stocks

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Original article by Philip Baker, Vesna Poljak
The Australian Financial Review – Page: 22 : 16-Nov-15

Ausbil Investment Management boasts some $A10bn worth of funds under management, and its Active Equity Fund has achieved an annual return of 11.1 per cent since inception. Ausbil co-founder Paul Xiradis is upbeat about Australia’s four major banks, as well as other blue-chip stocks such as Woolworths and BHP Billiton. He also likes QBE Insurance Group and BlueScope Steel, and believes that Woolworths should exit the Masters hardware business.

CORPORATES
AUSBIL INVESTMENT MANAGEMENT LIMITED, 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, WOOLWORTHS LIMITED – ASX WOW, BHP BILLITON LIMITED – ASX BHP, TELSTRA CORPORATION LIMITED – ASX TLS, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, QBE INSURANCE GROUP LIMITED – ASX QBE, BLUESCOPE STEEL LIMITED – ASX BSL, WESFARMERS LIMITED – ASX WES, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, TREASURY WINE ESTATES LIMITED – ASX TWE, CSL LIMITED – ASX CSL, RAMSAY HEALTH CARE LIMITED – ASX RHC, CROWN RESORTS LIMITED – ASX CWN, WESTPAC INVESTMENT MANAGEMENT PTY LTD, BUNNINGS GROUP LIMITED

Diversify call to super funds

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 : 19-Oct-15

Australian superannuation funds are forecast to have some $US2.5trn ($A3.4trn) worth of assets under management by 2020, compared with $A2bn at the end of March 2015. Itay Tuchman of Citigroup says the strong growth in assets under management in coming years will require super funds to further expand the range of international asset classes in which they invest. Meanwhile, Tuchman says Westpac’s move to increase its mortgage interest rates will strengthen the case for a further reduction in the cash rate.

CORPORATES
CITIGROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, JP MORGAN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD, INDIANA TOLL ROAD CONCESSION COMPANY, CANADA PENSION PLAN INVESTMENT BOARD

SMSFs opt for better returns

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Original article by Kate Cowling
The Australian Financial Review – Page: 6 : 28-Jul-15

A report by the SMSF Association and nabtrade shows that 15 per cent of self-managed superannuation fund members opted to outsource the investment process in 2014. This compares with just 7.3 per cent in 2012. Almost 40 per cent of SMSF investors chose to handle investment decisions themselves in 2014, which has not changed much since 2012. The report also shows that falling interest rates have prompted many SMSF members to increase their exposure to assets such as shares.

CORPORATES
SELF-MANAGED SUPER FUND ASSOCIATION OF AUSTRALIA PTY LTD, NABTRADE