INVESTMENTS – AUSTRALIA

Stocks to buy in uncertain times

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 33 : 29-Sep-15

John Conomos of Macquarie Securities says a number of Australian-listed stocks should perform well amid the current volatility and uncertainty in global financial markets. Telstra, ResMed and Aristocrat Leisure are deemed to have the lowest sensitivity to uncertainty, based on Macquarie’s metrics. Other stocks include TPG Telecom, CSL, Stockland, Federation Centres, Caltex, Wesfarmers and Bank of Queensland.

CORPORATES
MACQUARIE SECURITIES PTY LTD, RESMED INCORPORATED – ASX RMD, ARISTOCRAT LEISURE LIMITED – ASX ALL, TPG TELECOM LIMITED – ASX TPM, CL PLASTICS AND CONSULTANTS PTY LTD, STOCKLAND – ASX SGP, FEDERATION CENTRES – ASX FDC, CALTEX AUSTRALIA LIMITED – ASX CTX, WESFARMERS LIMITED – ASX WES, BANK OF QUEENSLAND LIMITED – ASX BOQ, UNITED STATES. FEDERAL RESERVE BOARD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Re-think urged on share income tax

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Original article by Joanna Mather
The Australian Financial Review – Page: 11 : 25-Sep-15

Australia’s dividend imputation system is under scrutiny in the wake of BHP Billiton’s proposal to use a payment from its Australian-listed company to fund a dividend payout for British shareholders. This would result in Australian shareholders losing some franking credits. Fidelity Australian Opportunities Fund portfolio manager Kate Howitt says the dividend imputation system should be retained, as shareholders in large companies often use their dividends to invest in smaller and more innovative businesses.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FIDELITY AUSTRALIAN OPPORTUNITIES FUND, KPMG AUSTRALIA PTY LTD, CORPORATE TAX ASSOCIATION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Dividends seek caring home

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 23-Sep-15

Australian-listed companies are poised to pay investors some $A18bn worth of dividends. However, UBS Wealth Management’s David Sokulsky says that in the near-term investors may be better off retaining their dividends in cash rather than reinvesting in shares. He says investors should wait until the US Federal Reserve increases the cash rate, as bank stocks may offer value when the central bank finally tightens monetary policy. He also says equity markets may have further downside.

CORPORATES
UBS WEALTH MANAGEMENT AUSTRALIA LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, AMP CAPITAL INVESTORS LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, EUROPEAN CENTRAL BANK, SUNCORP GROUP LIMITED – ASX SUN, WOODSIDE PETROLEUM LIMITED – ASX WPL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Get used to lower growth, returns

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 23 : 18-Sep-15

UBS Global Asset Management’s Tracey McNaughton believes that the US Federal Reserve should raise the cash rate in September 2015, but warns that financial markets may experience further volatility in the near-term regardless of its decision. McNaughton also says Australian investors can expect to receive lower returns in the future and should no longer rely on the traditional "set and forget" investment strategy.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, NIKKO ASSET MANAGEMENT GROUP

New PM a win for retail, media and tech shares

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 16-Sep-15

David Bassanese of BetaShares expects consumer and business confidence to rise in the near-term under new Prime Minister Malcolm Turnbull. He adds that Turnbull’s success in pursuing economic reform will determine whether a rise in business confidence is sustained. He says stocks in the retail, technology and construction sectors are likely to benefit from the leadership change. ST Wong of Prime Value Management say a Turnbull government may be positive for media stocks in particular.

CORPORATES
BETASHARES CAPITAL LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PRIME VALUE ASSET MANAGEMENT LIMITED, PEAK ASSET MANAGEMENT PTY LTD, IG MARKETS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NEWS CORPORATION – ASX NWS, AUSTRALIAN ETHICAL INVESTMENT LIMITED – ASX AEF, AUSTRALIA. DEPT OF THE ENVIRONMENT

Fight against fossil fuels gains ground

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Original article by Amanda Saunders, Jemima Whyte
The Australian Financial Review – Page: 7 : 28-Aug-15

The City of Melbourne will examine its investment policy with a view to divesting its shares in fossil fuels. Councillor Arron Wood said the council was aiming for zero net emissions by 2020 and it was important to lead by example. Albury City Council has also decided to review its investments following Newcastle’s shock decision to sell its shares in banks which fund miners.

CORPORATES
CITY OF MELBOURNE, NEWCASTLE CITY COUNCIL, ALBURY CITY COUNCIL, MOUNT ALEXANDER SHIRE COUNCIL, WESTPAC BANKING CORPORATION – ASX WBC, CITY OF SYDNEY, CITY OF PERTH, BLUE MOUNTAINS CITY COUNCIL

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

Selfie investors snub cash, shares

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Original article by Kate Cowling
The Australian Financial Review – Page: 22 : 22-Jul-15

The investment portfolios of Australian self-managed superannuation funds (SMSFs) have usually been focused on assets such as local shares, cash and term deposits. However, AMP Capital and BlackRock are among the groups that have noted greater interest in their absolute return funds among SMSFs. Hasan Tevfik of Credit Suisse says SMSFs often change their asset allocations in order to boost income, although he adds that this typically means increased exposure to shares.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, TOWERS WATSON, PERPETUAL PRIVATE CLIENTS, AUSTRALIAN TAXATION OFFICE

Stocks to watch as the $A drops

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Original article by Rose Powell
The Australian Financial Review – Page: 21 : 15-Jul-15

The Australian dollar has shed almost 10 per cent since mid-May 2015, and more than 20 per cent in the last year. Macquarie forecasts that a number of stocks will benefit from the recent downturn in the value of the currency, including CSL, Ramsay Health Care, Telstra and Brambles. On the other hand, stocks that are tipped to fall as a result of currency weakness include SEEK, Fortescue Metals Group, WorleyParsons and Rio Tinto.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, CSL LIMITED – ASX CSL, RAMSAY HEALTH CARE LIMITED – ASX RHC, TELSTRA CORPORATION LIMITED – ASX TLS, BRAMBLES LIMITED – ASX BXB, SEEK LIMITED – ASX SEK, FORTESCUE METALS GROUP LIMITED – ASX FMG, WORLEYPARSONS LIMITED – ASX WOR, RIO TINTO LIMITED – ASX RIO, ALS LIMITED – ASX ALQ, TRANSPACIFIC INDUSTRIES GROUP LIMITED – ASX TPI, SIMS METAL MANAGEMENT LIMITED – ASX SGM, AMCOR LIMITED – ASX AMC, SONIC HEALTHCARE LIMITED – ASX SHL, COMPUTERSHARE LIMITED – ASX CPU, COCA-COLA AMATIL LIMITED – ASX CCL, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, BLUESCOPE STEEL LIMITED – ASX BSL, CHALLENGER LIMITED – ASX CGF, MACQUARIE WEALTH MANAGEMENT, MORGANS FINANCIAL LIMITED, JP MORGAN AUSTRALIA LIMITED

Tough times present high-quality opportunities, says Clime

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 20 : 12-Jun-15

Australia’s benchmark S&P/ASX 200 Index rebounded to 5,557 points on 11 June 2015, having fallen below the 5,500-point level earlier in the week. Clime Asset Management’s Clime John Abernethy notes that the local market is now at its level of mid-2014, and says some stocks now offer value. Abernethy favours National Australia Bank, Telstra, Woolworths, Wesfarmers and CSL. He cites factors such as healthy earnings, strong dividends and expectations of a double-digit rate of return for each of these stocks in the next year.

CORPORATES
CLIME ASSET MANAGEMENT PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, CSL LIMITED – ASX CSL, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, EVIDENTE, MONEY MATTERS FINANCIAL SOLUTIONS PTY LTD