Investment Strategies

The return of value

One of the anomalies of the equity market over the past few years is that value stocks have underperformed growth. For the best part of the last century, buying stocks that were cheap was the best way to make gains.…

Suncorp launches hybrid

Suncorp has launched an issue of hybrid securities, offering the same pricing as Commonwealth Bank when it launched PERLS XII Capital Notes last month. Suncorp is looking to raise A$250 million. Suncorp Capital Notes 3 will be priced at a…

Big bank dividend party is over

Australia’s big banks have “reset” their dividends, cutting their payout ratios to more sustainable levels as they face a weak outlook and demands from regulators for more capital. While their dividend yields still look attractive, there is little prospect that…

Buying gold mining stocks as a defensive position

Marc Christopher Lavoie and Robert Brunelle are contrarian equity investors, so naturally with the US market close to a record high they are taking a defensive stance. The problem is traditional defensive stocks are expensive too. The pair are among…

Biomedical company ready for takeoff

Top performing fund manager Selector Funds Management only has a few stocks in its High Conviction Fund, so they have to count. Its latest pick is a biomedical company. The Selector High Conviction Equity Fund produced a return of 17.3…

Alternative investments not for the faint hearted

Self-managed super fund trustees have typically been vanilla investors. As the ATO statistics show, Australian shares, cash and fixed deposits, and property still comprise the bulk of their investments at about two-thirds of the $750 billion in these superannuation funds.…

Investing in the sustainability revolution’s second wave

Investment manager Tom King says investors are getting their heads around investing in electric vehicles, renewables and other energy efficiency businesses – what he calls the first wave of the sustainability revolution. King is the chief investment officer at Nanuk…

Small bank faces its ‘Kodak moment’

It used to be an article of faith among investors that a bank was a safe investment, with earnings tied to steady growth in the home loan market and the prospect of a steady dividend flow. Not any more. Evans…

The return of value

Fund managers have pointed to a “value bounce” in September, with more value-oriented stocks returning to favour. And they see the trend continuing. Reece Birtles, the chief investment officer of fund manager Martin Currie Australia, says value stocks are more…

Nine rules for investing

The low interest rate environment may have investors on edge but Shane Oliver, AMP Capital’s head of investment strategy and chief economist, has reminded them to avoid distraction and stick to the basics when it comes to investing. Make the…