FUND MANAGEMENT – AUSTRALIA

Perth fundies see more upside in resources

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 : 24-Oct-16

Australia’s S&P/ASX 300 Metals & Mining Index has gained 45.3 per cent so far in 2016, while the benchmark S&P/ASX 200 has risen by just 6.2 per cent. The rebound in the share prices of resources and energy stocks has rewarded investors who capitalised on a sell-off in the sector earlier in the year. WestOZ Funds Management has been progressively lifting its funds’ weightings toward the sector over recent months, while scaling back their exposure to cash.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 300 METALS AND MINING INDEX, WESTOZ FUNDS MANAGEMENT PTY LTD, WESTOZ INVESTMENT COMPANY LIMITED – ASX WIC, PACKER AND COMPANY INVESTIGATOR TRUST, NORILSK NICKEL, CAMECO CORPORATION, BELL POTTER SECURITIES LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, INDEPENDENCE GROUP NL – ASX IGO, WESTERN AREAS LIMITED – ASX WSA, SANDFIRE RESOURCES NL – ASX SFR

Two-thirds of funds beaten by the index

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 29 : 20-Sep-16

Data from Morningstar shows that 36.25 per cent of Australia’s actively-managed large-capitalisation funds matched or exceeded the return from the S&P/ASX 200 Accumulation Index in the year to 31 August 2016. This compares with 37.16 per cent over a three-year period, and 35.9 per cent over five years. In contrast, the five-year performance of US actively managed large-cap equity funds against the S&P 500 was just 9.5 per cent. Julian Beaumont of Bennelong Australian Equity Partners notes that Australia’s large-cap funds are more likely to engage in so-called index hugging.

CORPORATES
MORNINGSTAR PTY LTD, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, STANDARD AND POOR’S 500 INDEX, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, STATE STREET GLOBAL ADVISORS LIMITED, STANDARD AND POOR’S ASX SMALL ORDINARIES ACCUMULATION INDEX, RAMSAY HEALTH CARE LIMITED – ASX RHC, PRIMARY HEALTH CARE LIMITED – ASX PRY, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Padley ruffles feathers of the fund managers

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 20 : 19-Sep-16

Stockbroker Marcus Padley says the emergence of separately managed accounts represents a major change for the funds management industry. Padley is best known for the "Marcus Today" investment newsletter, which was launched in 1998. Marcus Today Investment Strategists has launched two SMAs, in which the client directly owns the shares. Padley favours IT stocks such as NextDC and Aconex, and healthcare stocks like Cochlear and Mayne Pharma.

CORPORATES
MARCUS TODAY INVESTMENT STRATEGISTS PTY LTD, BELL SECURITIES LIMITED, MORNINGSTAR PTY LTD, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, AITKEN INVESTMENT MANAGEMENT PTY LTD, NEXTDC LIMITED – ASX NXT, ACONEX LIMITED – ASX ACX, COCHLEAR LIMITED – ASX COH, MAYNE PHARMA GROUP LIMITED – ASX MYX, MEGAPORT LIMITED – ASX MP1, NANOSONICS LIMITED – ASX NAN, SPARK INFRASTRUCTURE GROUP – ASX SKI, VOCUS COMMUNICATIONS LIMITED – ASX VOC, CHORUS LIMITED – ASX CNU, SUPERLOOP LIMITED – ASX SLC, SPEEDCAST INTERNATIONAL LIMITED – ASX SDA, NETCOMM WIRELESS LIMITED – ASX NTC, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, CREDIT CORP GROUP LIMITED – ASX CCP, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, MACQUARIE GROUP LIMITED – ASX MQG, TELSTRA CORPORATION LIMITED – ASX TLS

Investors defy Brexit to scoop bargains

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 8-Jul-16

CYBG and Henderson Group are among the Australian-listed stocks that have been heavily sold down in the wake of the UK’s vote to leave the European Union. Some local fund managers have capitalised on the bearish sentiment to increase their holdings of unloved stocks that have exposure to the UK. However, Bennelong Australian Equity Partners’ Julian Beaumont remains cautious about such stocks, while some fund managers are increasing their holdings of gold stocks or real estate investment trusts.

CORPORATES
CYBG PLC – ASX CYB, HENDERSON GROUP PLC – ASX HGG, PERPETUAL INVESTMENTS, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, AVIVA PLC, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, ARISTOCRAT LEISURE LIMITED – ASX ALL, PHOENIX PORTFOLIOS PTY LTD, DESANE GROUP HOLDINGS LIMITED – ASX DGH, BLACKWALL PROPERTY TRUST – ASX BWR, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, CHARTER HALL RETAIL REIT – ASX CQR, VAN ECK ASSOCIATES CORPORATION, REGIS RESOURCES LIMITED – ASX RRL, MOONSTAR INVESTMENTS PTY LTD, PANTERRA GOLD LIMITED – ASX PGI, UBS HOLDINGS PTY LTD, SYRAH RESOURCES LIMITED – ASX SYR, MACQUARIE GROUP LIMITED – ASX MQG, GRYPHON MINERALS LIMITED – ASX GRY

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

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

High value bank customers lack loyalty

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 5-Nov-15

A Roy Morgan Single Source survey has found that the top quintile of Australian banking and finance customers – which accounts for 63 per cent of total market value – show very little loyalty to financial institutions. The Commonwealth Bank group has the highest share of wallet among top quintile customers (32.1 per cent), ahead of the Westpac group (31.1 per cent) and the National Australia Bank group (30.9 per cent). However, the NAB group has the highest share of the wealth management wallet among top quintile customers, at 17.1 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF QUEENSLAND LIMITED – ASX BOQ, MACQUARIE GROUP LIMITED – ASX MQG

Calls to limit $21b super fees ‘gouge’

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 28-Aug-15

National Seniors Australia has called for rules to force superannuation managers to cut back on fees, which amounted to $A21 billion a year. If funds did not voluntarily moderate fees, the regulator might have to step in, CEO Michael O’Neill said. Grattan Institute CEO John Daley told the National Reform Summit there was insufficient competition in the super industry to drive down fees. He has proposed a plan to save $A5 billion in fees which involves a tender process and a series of no-frills super products.

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, GRATTAN INSTITUTE, SUPERRATINGS PTY LTD, KPMG, AUSTRALIAN LABOR PARTY

SMSFs told to hold their nerve and buy

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Original article by Jonathan Barrett
The Australian Financial Review – Page: 9 : 26-Aug-15

Self-managed superannuation funds have been advised to remain calm during a period of extreme volatility on the Australian sharemarket. Wayne Leggett, principal at Paramount Wealth Management in Perth, says the Australian economy is in a good shape. Australian stocks are still relatively cheap and there are many attractive buying opportunities.

CORPORATES
PARAMOUNT WEALTH MANAGEMENT, STANDARD AND POOR’S ASX 200 INDEX, SMSF ASSOCIATION, UBS HOLDINGS PTY LTD, HLB MANN JUDD