Volatile reporting season ahead

A leading analyst has forecast a bumpy profit season, as companies downgrade their forecasts. Share price reactions have been sharp following ‘negative surprises’. Macquarie Securities says the industrials sector will be flat, with no overall earnings growth this financial year.…

Real return strategy reduces equity exposure

When fund manager Schroders Investment Management Australia launched its Real Return Fund in 2008, it set a target annual return of CPI plus 5 per cent. It has largely achieved that. After assessing the outlook for global share markets in…

AFIC concentrates its portfolio

One of Australia’s long-standing listed investment companies, Australian Foundation Investment Company, is concentrating its portfolio as its investment team looks for greater conviction in its holdings. Over the past four years, the fund has been going through what is calls…

Driven by dividends: Aussie sharemarket over the past decade

Dividends accounted for more than half the growth of the Australian sharemarket over the past decade. The S&P/ASX 300 produced a total return of 7.8 per cent a year over the 2010s, with dividends accounting for 59 per cent of…

Time to avoid overvalued companies

For equity investors who worry about the prospect of dislocation in the Australian sharemarket in the year ahead, asset manager Aaron Binsted shares your concern. And he has a few suggestions. Binsted is an Australian equity portfolio manager at Lazard…

Stock picks for a low-rate world

Bond yields will continue to fall, driven by the negative impact of recent tariff increases, according to a new equity market report by Macquarie Securities. In an ongoing low-rate environment, Macquarie likes bond proxies and defensive stocks. It says its…

The New Criterion

Oh dear! The stronger-for-longer lithium story is not exactly panning out as such, with a global oversupply emerging and the upbeat blue sky stories supplanted by tales of woe from the emerging producers. The same thing’s happening with that other…

The New Criterion

When it comes to the high multiple tech stocks with ‘cloud’ based subscription models, investors can’t be accused of taking the ‘mister in-between’ approach. The profit reporting season showed that disappointing numbers have been met with resounding double-digit sell-downs, while…

The New Criterion

Funtastic (FUN) 4.5c Can Buzz Lightyear and Woody come to the rescue of the beleaguered toy distributor? As with McPherson’s, fun has been a rare commodity at Funtastic despite its impressive portfolio of brands that includes Razor Scooters, Pillow Pets,…

Kavanagh

A lot of investment managers had trouble navigating the ups and downs of the Australian equity market last financial year, with its big sell-off in the December quarter and strong comeback in the second half of the year. Some believe…