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Australian Investor Market Perspective Greg Matthews Chief Executive Officer Independent Asset Management. Disclaimer.

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  1. Australian Investor Market PerspectiveGreg MatthewsChief Executive OfficerIndependent Asset Management

  2. Disclaimer The material shown in this presentation has been prepared and issued by Ventura Investment Management Limited, ABN 49 092 375 258, AFSL 253045 (Ventura). Equity Trustees Limited ABN 46 004 031 298, AFSL 240975 (EQT) is the responsible entity of the Ventura and All Star series of funds. Information contained in this document is of a general nature only. It is not intended as advice, as it does not take into account your individual objectives, financial situation or needs. Investment can only be made on an application form attached to the Product Disclosure Statement (PDS) or through an IDPS operator . Copies of the PDS are available from Ventura or your financial planner.

  3. ASX200 bull market – 1yr target 6000 3

  4. History shows big rises after 50% falls and 5 year bear markets in 1973, 1987 4

  5. ASX300 remains cheap due to resource shares – P/E can support rise to 6000

  6. Panic is over in US: VIX “panic index”

  7. Consensus earnings growth revisions

  8. More profit upgrades, less downgrades

  9. Ratio of profit revisions back to normal

  10. Market panic chases yield stocks

  11. High yield stocks are very expensive

  12. Banks share of market cap 10 year highResources at 6 year low

  13. OECD Leading Indicator turns higher

  14. ML Global Revisions Ratio at average

  15. China lead indicators show growth to rise

  16. China lending pick up

  17. Base metal prices to rise with global IP

  18. QE1 and QE2 caused big rises in shares and commodities

  19. Chinese market up 17% from end 2012 A good lead for ASX resource stocks

  20. Resources P/E 12x - still over 20% below average despite superior growth prospects

  21. Westpac-MI leading index up to 4.2%

  22. Rate cuts should boost local economy

  23. Housing finance approvals rise 6.8% yr

  24. Rising house prices support spending

  25. Clearance rates up and upper end properties starting to sell

  26. Domestic cyclical industrials still very cheap vs defensive yield stocks

  27. China crude steel output hits a record

  28. Steel inventories falling despite record production levels

  29. Iron Ore Inventories below average

  30. Iron Ore estimates below spot price

  31. Resources still underperforming 31

  32. Bank dividend yields fall; miners rise

  33. Bank sector P/E ratio - expensive

  34. Bank RoE falling, yet price to book is high

  35. Is the bank run near its peak?

  36. Equity flows improving

  37. Safety stocks overpriced vs growth

  38. Very high active share score – walking the talk Active share score – monthly since December 2007 .

  39. IAM - a long term proven performer

  40. IAM performance past 12 months

  41. Outlook for performance • IAM performed very strongly after GFC Portfolio positions similar now to post GFC period • Same factors driving markets now • Shares still undervalued relative to bonds and cash • quantitative easing and rising commodity prices • very low ownership of shares and “risk assets” • bubble in “safe havens” • Expect strong rise in very undervalued market led by resources • IAM positioned for move to 5000 near-term and 6000 in 1 year 41

  42. Thank you • Appendix portfolio positioning 42

  43. Portfolio Construction Sector Allocation since inception of All Star Fund

  44. Portfolio Construction Sector Allocation – 12 month shift

  45. Current Portfolio Positioning Sector positions: X-axis labels show actual positions held, y-axis shows relative to index 28 February 2013 45

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