PORTFOLIO MANAGEMENT – AUSTRALIA

Biotech index outperformance in 2015 points to opportunities

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Original article by Jessica Sier
The Australian Financial Review – Page: 18 : 8-Jan-16

Australia’s benchmark S&P/ASX 200 Index shed 2.7 per cent during 2015. However, an index of 40 biotechnology companies which was compiled by "Biotech Daily" gained 22 per cent. ImpediMed, Opthea, Nanosonics, Starpharma and Mesoblast are among the biotechnology stocks that could potentially perform well in 2016.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BIOTECH DAILY, IMPEDIMED LIMITED – ASX IPD, OPTHEA LIMITED – ASX OPT, NANOSONICS LIMITED – ASX NAN, STARPHARMA HOLDINGS LIMITED – ASX SPL, MESOBLAST LIMITED – ASX MSB, HATCHTECH PTY LTD, SPINIFEX PHARMACEUTICALS PTY LTD, FIBROTECH THERAPEUTICS PTY LTD, QRXPHARMA LIMITED – ASX QRX, OSPREY MEDICAL INCORPORATED – ASX OSP, GI DYNAMICS INCORPORATED – ASX GID, CANACCORD GENUITY (AUSTRALIA) LIMITED, COCHLEAR LIMITED – ASX COH, CSL LIMITED – ASX CSL, RESMED INCORPORATED – ASX RMD

Resources stocks have huge interest, among their few fans

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Original article by Vesna Poljak
The Australian Financial Review – Page: 11 & 12 : 4-Jan-16

Garth Rossler of Maple-Brown Abbott says resources stocks could perform well in 2016 after a challenging year for the sector in 2015. Meanwhile, Randal Jenneke of T Rowe Price recently warned that the high yields from infrastructure and property stocks may not be sustainable. He says such stocks are likely to be impacted if the US Federal Reserve adopts an aggressive approach to increasing interest rates.

CORPORATES
MAPLE-BROWN ABBOTT LIMITED, T ROWE PRICE GROUP INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, CLSA AUSTRALIA PTY LTD

The good, the bad and the ugly of 2015

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 14 : 22-Dec-15

The rise in Blackmores’ share price from $A35 to more than $A200m was one of the highlights of 2015 for investors and financial markets. Others include the profit turnaround of Qantas, the US IPO of Atlassian, the sale of Toll Holdings to Japan Post for $A6.5bn and the commencement of exports from Gina Rinehart’s Roy Hill iron ore project. On the downside, a number of stocks have fallen sharply in 2015, including BHP Billiton, Dick Smith Holdings and Slater & Gordon, while embattled retailer Woolworths has issued several profit downgrades and is yet to stem losses at its Big W and Masters businesses.

CORPORATES
BLACKMORES LIMITED – ASX BKL, QANTAS AIRWAYS LIMITED – ASX QAN, ATLASSIAN CORPORATION PLC, TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, ROY HILL IRON ORE PTY LTD, BHP BILLITON LIMITED – ASX BHP, DICK SMITH HOLDINGS LIMITED – ASX DSH, SLATER AND GORDON LIMITED – ASX SGH, WOOLWORTHS LIMITED – ASX WOW, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, SWISSE WELLNESS PTY LTD, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, BERKSHIRE HATHAWAY INCORPORATED, APPEN LIMITED – ASX APX, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SANTOS LIMITED – ASX STO, SCEPTER PARTNERS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, ANCHORAGE CAPITAL PARTNERS PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, VOCATION LIMITED – ASX VET, AUSTRALIAN CAREERS NETWORK LIMITED, ORICA LIMITED – ASX ORI, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Credit Suisse picks 2016 stocks, predicts ASX at 6000 end next year

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 29 : 3-Dec-15

Credit Suisse is upbeat about the Australian sharemarket in 2016, forecasting that the benchmark S&P/ASX 200 Index will rise to the 6,000-point level by the end of the calendar year. The firm expects more companies to pursue strategies such as mergers/acquisitions and cost reductions. It has identified Macquarie Group, Nine Entertainment Company, AGL Energy, Carsales.com, Aristocrat Leisure and Lend Lease as stocks that should perform well in 2016.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, AGL ENERGY LIMITED – ASX AGL, CARSALES.COM LIMITED – ASX CAR, ARISTOCRAT LEISURE LIMITED – ASX ALL, LEND LEASE GROUP LIMITED – ASX LLC, WOOLWORTHS LIMITED – ASX WOW, BRAMBLES LIMITED – ASX BXB, CROWN RESORTS LIMITED – ASX CWN, MEDIBANK PRIVATE LIMITED – ASX MPL, HEALTHSCOPE LIMITED – ASX HSO

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

Some growth stocks overpriced, warns UBS

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 27-Oct-15

TPG Telecom and Domino’s Pizza Enterprises are among the companies that have been added to UBS Australia’s list of "quality growth" stocks. The stocks on this list delivered a total return of 21.5 per cent in the year to 14 October 2015, compared with a return of 10.2 per cent for the S&P/ASX 100 ex-resources index. David Cassidy of UBS notes that stocks on the firm’s list have a median price-earnings ratio of 20.5 times.

CORPORATES
UBS HOLDINGS PTY LTD, TPG TELECOM LIMITED – ASX TPM, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, CSL LIMITED – ASX CSL, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, SEEK LIMITED – ASX SEK, DULUXGROUP LIMITED – ASX DLX, CARSALES.COM LIMITED – ASX CAR, RESMED INCORPORATED – ASX RMD, RAMSAY HEALTH CARE LIMITED – ASX RHC, COCHLEAR LIMITED – ASX COH, REA GROUP LIMITED – ASX REA, ASX LIMITED – ASX ASX, TATTS GROUP LIMITED – ASX TTS, TABCORP HOLDINGS LIMITED – ASX TAH, MACQUARIE WEALTH MANAGEMENT, HEALTHSCOPE LIMITED – ASX HSO, SONIC HEALTHCARE LIMITED – ASX SHL, COVER-MORE GROUP LIMITED – ASX CVO, BREVILLE GROUP LIMITED – ASX BRG, STANDARD AND POOR’S ASX 100 INDEX

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

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

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