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The Macquarie Companies Conference held annually in Sydney gives many of Australia’s largest listed companies the opportunity to give a trading update to Wholesale/Institutional investors. The overall mood of this year’s meeting could best be described as one of cautious optimism. However, if there was one point of difference between this and past conferences, it was that the bulk of the presentations were aimed at directly addressing current investor concerns – chiefly earnings certainty and yield. In stark contrast to presentations of the past where companies would often map out ambitious growth plans, this year’s generally stressed financial discipline and progressive capital management. Some of the more notable examples are mentioned in the attached note.
Ben Bowen - Portfolio Manager, FYM Financial
In our last update we touched on three of the main reasons why our domestic equity market had underperformed global markets over the past twelve months. This was due to political uncertainty, the uncharted strength in our dollar and fears of a slowdown of the Chinese Economy. Another factor that we did not mention was the yields on offer in the Australian fixed interest market compared to the rest of the world. In contrast to the anaemic rates on offer in places such as the US and Europe where official rates are close to zero, our fixed interest market offers far higher yields and gives investors an attractive alternative to equity investment.
If you would like to know about the:
- various types on offer,
- our current model portfolio, and
- our performance YTD
please click on the link below to continue reading.
- Europe still faces some serious issues, but how much of a concern are they to Australia...particularly when both the US & China have turned the corner!
'Interest rates are at record lows, liquidity is at record highs, Europe just needs to stop making headlines and let the positive news from the US and China get some air time. Once this happens, raw fear will begin to transform in to the fear of missing out'. - Matthew Drennan, Executive General Manager Zurich Investments
It has certainly been a frustrating time for Australian investors, but with an improving global economic backdrop, measures implemented in Europe to stem the sovereign debt crisis and the height of domestic policy uncertainty behind us, 2012 has started well. Please click on the link to read our full March quarter Economic and Market Update.
We wish everyone a happy Easter.
March quarter Economic Update
Attached is a very well written outlook for financial markets in 2012 by Scott Minerd, the Chief Investment Officer of Guggenheim Partners.
Scott has very accurately predicted global market themes and direction for a sustained period and is now a strategist that we follow closely.