PORTFOLIO MANAGEMENT – AUSTRALIA

SMSFs head for managed funds in volatile times

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Original article by Sally Patten
The Australian Financial Review – Page: 29 : 12-Aug-16

A survey by Investment Trends and Vanguard shows that 17 per cent of Australia’s self-managed superannuation funds expect to increase their exposure to managed funds in the next 12 months, compared with about 14 per cent in 2015. Meanwhile, the proportion of SMSF trustees who intend to invest in blue-chip stocks has fallen from 65 per cent to 55 per cent. There has also been a decline in investment expectations regarding exchanged traded funds and high-yield shares.

CORPORATES
INVESTMENT TRENDS PTY LTD, VANGUARD INVESTMENTS AUSTRALIA LIMITED

Resources on the rebound, but is it time to get on board?

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 11-Aug-16

A rise in the spot prices of some commodities may signal a recovery in the resources sector. Investors are optimistic. The share prices of Australian-listed mining companies have risen 25 per cent since the beginning of 2016. Fortescue Metals Group’s stellar performance is particularly impressive. The stock has risen from $A1.44 in January to $A4.50 on 9 August.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BELL POTTER SECURITIES LIMITED

There’s still value on Wall Street, fund managers say

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 13-Jul-16

Perpetual’s Garry Laurence says the US sharemarket may have peaked, after the S&P 500 reached a new high in mid-July 2016. He anticipates further market volatility, and identifies Merck, Sanofi, Oracle, EMC and Zhaopin as the best buying opportunities among US-listed stocks. Wingate Asset Management’s Chad Padowitz notes that some sectors of the US sharemarket offer better value than others at present, and he favours stocks such as Citigroup, Bank of America, Allergan and Sanofi.

CORPORATES
PERPETUAL LIMITED – ASX PPT, WINGATE ASSET MANAGEMENT PTY LTD, STANDARD AND POOR’S 500 INDEX, MERCK AND COMPANY INCORPORATED, SANOFI PHARMACEUTICALS, ORACLE CORPORATION, EMC CORPORATION, ZHAOPIN LIMITED, CITIGROUP INCORPORATED, BANK OF AMERICA CORPORATION, ALLERGAN INCORPORATED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, BANK OF ENGLAND, BANK OF JAPAN, RESERVE BANK OF AUSTRALIA, RESERVE BANK OF NEW ZEALAND, JAPAN. OFFICE OF THE PRIME MINISTER

Expensive defensives ‘threatened’

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 1 & 11 : 12-Jul-16

Paul Ashworth of Cameron Harrison is among the financial market experts who question whether the rally in defensive stocks can be sustained. Defensive sectors such as healthcare, utilities and industrials have posted double-digit gains over the last year, while the broader Australian sharemarket has shed three per cent. Prime Value Asset Management’s ST Wong notes that some stocks such as infrastructure and utilities are now trading at high forward price-earnings ratios, but he says they could post further gains if the bond rally continues.

CORPORATES
CAMERON HARRISON PTY LTD, PRIME VALUE ASSET MANAGEMENT LIMITED, STANDARD AND POOR’S ASX 200 INDEX, AGL ENERGY LIMITED – ASX AGL, ALTIUM LIMITED – ASX ALU, TREASURY WINE ESTATES LIMITED – ASX TWE, INFIGEN ENERGY LIMITED – ASX IFN, INVESTORS MUTUAL LIMITED, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, INTEGRAL DIAGNOSTICS LIMITED – ASX IDX, VIRTUS HEALTH LIMITED – ASX VRT, ORORA LIMITED – ASX ORA, VITA GROUP LIMITED – ASX VTG

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

Sell-off is prime time for buying

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Original article by Jessica Sier, Vanessa Desloires
The Australian Financial Review – Page: 29 : 29-Jun-16

Shares in British and Irish banks have fallen sharply in the wake of the "Brexit" referendum, but Platinum Asset Management’s Clay Smolinski says this has created a buying opportunity for investors. Meanwhile, Aurora Funds Management’s Hugh Dive says the fallout from the UK’s vote to leave the European Union should have little impact on the Australian sharemarket and the nation’s four major banks. He notes that the local banks have less reliance on wholesale funding from Europe than during the global financial crisis.

CORPORATES
PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, AURORA FUNDS 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, BANK OF IRELAND PLC, BARCLAYS BANK PLC, ROYAL BANK OF SCOTLAND GROUP PLC, EUROPEAN CENTRAL BANK, MOODY’S INVESTORS SERVICE INCORPORATED

Dud stocks stage tidy turnarounds

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Original article by Simon Evans
The Australian Financial Review – Page: 16 : 15-Jun-16

A number of stocks whose poor performance had made them candidates for tax-loss selling in the lead-up to the end of the financial year have rebounded in recent months. Santos reached a low of $A2.64 early in 2016, but the stock has since risen to around $A4.48. Other resources and mining-related stocks have also staged a turnaround in recent months, while grocery wholesaler Metcash has risen strongly since September 2015. Likewise, speculation of a potential demerger has boosted the share price of Origin Energy.

CORPORATES
SANTOS LIMITED – ASX STO, METCASH LIMITED – ASX MTS, ORIGIN ENERGY LIMITED – ASX ORG, SOUTH32 LIMITED – ASX S32, WORLEYPARSONS LIMITED – ASX WOR, BRADKEN LIMITED – ASX BKN, PERPETUAL INVESTMENTS, IGA, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, ARRIUM LIMITED – ASX ARI

Beaten-down blue chips offer attractive buying opportunities

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 30 : 14-Jun-16

Australia’s S&P/ASX300 has gained 3.76 per cent so far in 2016, while the S&P/ASX 200 has shed 2.4 per cent. However, Olivia Engel of State Street Global Advisors remains upbeat about the top 20 blue chip stocks, arguing that the sell-off means that some of them offer value. Tim Schroeders of Pengana Capital recently noted that blue-chip miners BHP Billiton and Rio Tinto represent "reasonable" value on an enterprise value and EBITDA basis.

CORPORATES
STANDARD AND POOR’S ASX 300 INDEX, STANDARD AND POOR’S ASX 20 INDEX, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, PENGANA CAPITAL LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, 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, TELSTRA CORPORATION LIMITED – ASX TLS, CSL LIMITED – ASX CSL, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, SCENTRE GROUP – ASX SCG, MACQUARIE GROUP LIMITED – ASX MQG, TRANSURBAN GROUP LIMITED – ASX TCL, WOODSIDE PETROLEUM LIMITED – ASX WPL, WESTFIELD CORPORATION – ASX WFD, BRAMBLES LIMITED – ASX BXB, QBE INSURANCE GROUP LIMITED – ASX QBE, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG

Is the yield play back in vogue?

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Original article by Jessica Sier
The Australian Financial Review – Page: 25 : 8-Jun-16

The low interest rate environment has prompted strong support for high-yielding Australian stocks. However. investors recently began selling yield stocks amid expectations of several interest rate rises in the US during 2016. Citi Global Markets’ Karen Jorritsma notes that yield stocks will be back in favour following the release of the latest US jobs data, which will dampen expectations that the Federal Reserve will increase the cash rate.

CORPORATES
CITIGROUP PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, SCENTRE GROUP – ASX SCG, SYDNEY AIRPORT – ASX SYD, TRANSURBAN GROUP LIMITED – ASX TCL, APA GROUP – ASX APA, KATANA ASSET MANAGEMENT LIMITED, DEXUS PROPERTY GROUP – ASX DXS, MIRVAC GROUP – ASX MGR

Coca-Cola Amatil tops 10 stocks to buy if June turns ugly

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Original article by Simon Evans
The Australian Financial Review – Page: 30 : 3-Jun-16

The Australian sharemarket has performed well since mid-April 2016, but some analysts believe that this may not be sustained. Tim Baker of Deutsche Bank has identified a number of defensive stocks that investors should consider if sentiment becomes bearish in June. They are Coca-Cola Amatil, Estia Health, Mirvac Group, DUET Group, AGL Energy, Suncorp Group, Medibank Private, Shopping Centres Australasia Property Group, Vicinity Centres and Healthscope.

CORPORATES
DEUTSCHE BANK AG, COCA-COLA AMATIL LIMITED – ASX CCL, ESTIA HEALTH LIMITED – ASX EHE, MIRVAC GROUP – ASX MGR, DUET GROUP – ASX DUE, AGL ENERGY LIMITED – ASX AGL, SUNCORP GROUP LIMITED – ASX SUN, MEDIBANK PRIVATE LIMITED – ASX MPL, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, VICINITY CENTRES – ASX VCX, HEALTHSCOPE LIMITED – ASX HSO