One of the features of the FY20 reporting season was the excellent cashflow performance of most Australian small cap companies. With the onset of COVID-19, many companies faced a liquidity crunch as revenue dried up and relief on cost saving measures, government programs including JobKeeper and rent relief took a while to kick in. This […]
The super rules change regularly, and this year is no exception. We are waiting on changes currently before the parliament, anticipating some of the changes announced in last year’s budget, and understanding the impact of SuperStream on self-managed superannuation funds (SMSF), as well as the indexation of the Transfer Balance Cap. Currently before the parliament […]
A low interest rate environment and uncertainty present challenges for investors looking for diversified strategies to defend their portfolios in 2021. As a cyclical asset class, Australian real estate has been subjected to the full effects of the pandemic through the past 12 months, but we believe there are still opportunities for those seeking yield […]
The ASX 200 is now back to about 10% below the record 7,200 level it hit in February last year, just before the virus rocked the world. We think many sectors are in great shape after coming lean and mean out of the crisis with strong earnings momentum. Further, Australia is about six months ahead […]
We believe those who view the exceptional profit upgrades from domestic consumer-related stocks over the last few months as being extremely short-term should consider the current spending capacity – and options for spending – of the Australian consumer. We have found1 that there is a high level of spending capacity left within the domestic consumer. […]
At its meeting today, the Board decided to maintain the current policy settings, including the targets of 10 basis points for the cash rate and the yield on 3-year Australian Government bonds, as well as the parameters of the Term Funding Facility and the government bond purchase program. Globally, the news has been mixed recently. On […]
When the COVID-19 pandemic first started to bite in Australia, we said the banking sector would hold up in relative terms, certainly better than it did during the Global Financial Crisis. I’m pleased to say, those projections are holding true. Seven months on since the COVID-19 pandemic started impacting the global economy, Australian major banks […]
In a massive healthcare breakthrough in the race to save and protect lives from COVID-19, Pfizer has announced some highly promising vaccine trail results. All going to plan, this should save lives, and in time, help return our societies to some form of normality. While it’s not yet a finished product, the vaccine shows great […]
The tightly held office market in Australia, particularly in Sydney and Melbourne, has had a stellar run in recent years, with strong fundamentals and robust tenant demand resulting in record low levels of vacancy. The last six months, however, has seen COVID-19 containment measures resulting in a large portion of the workforce working from home […]
Earlier in the year we wrote about our attraction to the mining services industry given a favourable macro backdrop, earnings growth and cheap valuations. While the macro side was very shaky for a few months through the COVID-19 pandemic, we believe it has actually become even more positive given Chinese stimulus and record low interest […]