September 2016 ASA Equity Magazine

Transcription

EQUITY
STANDING UP FOR
SHAREHOLDERS
SEPTEMBER 2016
VOL 30 #08
SHAREHOLDER
ACTIVISM IN
AUSTRALIA
06
08
13
Who’s the dux of
the education sector?
Gold is the strongest
form of money
The Dick Smith lessons
RRP $10
www.australianshareholders.com.au
EQUITY SEPTEMBER 2016 1
EQUITY
STANDING UP FOR
SHAREHOLDERS
FEATURES THIS MONTH
SEPTEMBER 2016
VOL 30 #08
04 Shareholder activism in Australia
Shareholder activism is well established as an investment strategy
in North America and Europe, yet remains in an embryonic form in
Australia. Activism is best applied when shareholder value is being
destroyed as a result of persistent failures by a company’s board
and management in one or a combination of three areas: strategy;
governance; and capital management.
06 Who’s the dux of the education sector?
Australia earns more than $20bn in export revenue from education,
making it the country’s third-largest export industry behind coal and
iron ore. What’s good for students might be even better for investors
in ASX-listed companies. So what opportunities exist in Australia’s
higher education sector?
08 Gold is the strongest form of money
There are some fundamental reasons why the gold price has more
upside. Peter Hall, Founder and Chief Investment Officer of Hunter
Hall, outlines why he believes there are some golden opportunities
to consider.
10
11
12
13
Invest like the
Future Fund
Letter to the Editor
I’m not dead yet – the
Advanced Health Directive
14
15
16
17
AGM reports
Brickbats and Bouquets
Make your vote count
Short selling
18
19
20
21
Robo-advice
News desk
Portfolio Construction
Masterclass
NSW Report
2 SEPTEMBER 2016 EQUITY
CHAIR REPORT
By Diana D’Ambra
BOARD OF DIRECTORS
Diana D’Ambra BCom MCom FCA MAICD, Chairman
Geoffrey Bowd BCom MCom
Betty Clarke-Wood ACIP
Allan Goldin BA BLaw
Don Hyatt BAppSc DipEd M Ed MACE
Stephen Mayne BCom, GAICD
NATIONAL OFFICE
Silvana Eccles
National Operations Manager
Samantha Clark
Events & Member Services Officer
Veronika Ilnycky
Communications Officer
Louise Sinclair
Administration Assistant
EQUITY EDITORS
Silvana Eccles and Veronika IInycky
So how do we enhance our returns and still manage the risk of our portfolio?
Each year, the ASX together with Russell Investments produce a research study on
long term returns. The latest report issued in May shows the performance of each asset
classes over the past 10 years.
The general benchmark return is CPI plus 4%, so for the last 10 years (to 31 December
2015) this amounted to 6.6% pa. According to the study the various asset classes
earned on average each year the following returns over the past 10 years on a gross
basis (ignoring tax but including costs):
1.Not surprisingly residential property hit the number one spot with an average
annual return over 10 years of 8% (and we have seen some spectacular rises
over the past two years);
Anna Lau
Head of Research
STATE BRANCHES
ACT Edward Patching
NSW Richard McDonald
QLD Alison Harrington
SA Kevin Parken
VIC Don Hyatt
WA Barry Nunn We are all aware of the challenge to achieve reasonable returns on our portfolios in
a low interest environment. With the August RBA cash rate drop to 1.5% returns on
bank term deposits in a low inflation and low interest rate environment are inadequate.
[email protected]
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EMAIL
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WEBSITE
www.asa.asn.au
www.australianshareholders.com.au
DISCLAIMER
This material in EQUITY is provided for information
only. No responsibility or any form of contractual,
tortious or other liability is accepted for decisions
made on the basis of the information contained
herein. Nothing in EQUITY is intended or should be
interpreted as being investment advice. Investment
advice can only be obtained from persons who
are licensed in accordance with the Corporations
Act. Views expressed in articles in EQUITY do not
necessarily reflect ASA policy. The ASA does not
endorse or favour any specific commercial product or
company. The ASA is often able to negotiate discounts
or benefits for ASA members however the inclusion
of discounts or advertisements in EQUITY, on the ASA
website or within other ASA communications does not
constitute an endorsement for the products, services
or companies mentioned.
COPYRIGHT
All material published in EQUITY is copyright, as are
ASA Policy Statements whether published in Equity or
not. Reproduction in whole or in part is not permitted
without written authority from the Editor.
All graphs for the Company Reports derive from www.
netquote.com.au. Any correspondence regarding
matters covered in this magazine should be addressed
to the Editor.
2.
Next came global bonds (unhedged) at 7.3%;
3.
Followed by global shares (hedged) and Aussie bonds, both returning 6.2% pa;
4.Aussie shares were not far behind at 5.5% p.a. (although the GFC and the end of
the mining boom have dragged the 10 year average down!) and lastly;
5.
Cash at 3.1%.
The study also looks at the impact of taxes (marginal and taxes on super) and also
measures returns over 20 years. Interestingly Australian property and shares are the
top two asset classes for returns over the last 20 years.
The full Long-term Investing Report is available on the Russell Investments website:
https://russellinvestments.com/au/insights/russell-asx-long-term-investing-report
To mitigate the cash return drag on overall portfolio performance bonds can play a part.
In late July I was fortunate to attend the Kanga News/NAB summit on Fixed Interest
(bonds). At that summit Robert Mead, Head of Portfolio Management, Australia, for
PIMCO noted that over the last eight financial years, bond returns have exceeded equity
returns on average by 2.5% p.a. and they achieved this return at almost one-fifth of
the volatility of equities. Yet, Australian investors continue to have one of the lowest
allocations to bonds in the world.
It is likely that more corporate debt bonds will be listed on ASX and regulators are
looking at ways to allow retail investors to have easier and better access to corporate
bond markets. Typically bonds are issued in minimum lots of $500k, making it difficult
for the retail investor to have a diversified bond portfolio.
One way to invest in bonds is via a bond fund. According to Morningstar there are over
600 managed funds investing in bonds with approximately 350 investing in Australian
bonds alone, 120 funds investing in global bonds and another 160 in a mixture of
Australian and international bonds. For those wanting exposure to emerging markets
or inflation linked bonds there are funds available in this space too.
Fees on Aussie bond funds vary widely from under 0.5% (for around 100 funds) to
over 1.5% (for around 100 funds) with the remainder somewhere in between. Some
funds have entry or exit fees. When selecting a fund you must also understand their
objective, underlying credit risk and liquidity.
On performance I note the top nine Aussie bond funds in terms of size had an average
return over the past five years of 6.2% and over the past 10 years of 6.71%. The top
global funds have performed even better. Clearly the past is not a guide to future
performance, but bond funds have shown considerable stability over the past 10
years. Can this continue?
I wish to inform you that regrettably Barry Nunn resigned from the Board in mid-August
due to personal commitments. Barry joined the Board in early 2012. I have been a coDirector with Barry for two of those four years and will miss Barry’s guidance, energy
and significant contribution as a Director and leader. Barry will continue as WA State
Chairman. On behalf of the Board, staff and members I wish Barry and his family all
the best. E
Shareholder activism
in Australia
By Gabriel Radzyminski Managing Director and Portfolio Manager at Sandon Capital
Shareholder activism is well established as an investment strategy
in North America and Europe, yet remains in an embryonic
form in Australia. An activist investor is one who buys shares
in a company with the express intention of using one or more
of the tools at their disposal to effect positive change at the
company for the benefit of all shareholders. These tools can
range from targeting underperforming boards and management
to suggesting capital management or corporate transaction
initiatives.
I believe shareholder activism is best applied when shareholder
value is being destroyed as a result of persistent failures by a
company’s board and management in one, or a combination
of three areas: (i) strategy; (ii) governance; and (iii) capital
management. As part-owners of a company, shareholders
have rights and I believe all shareholders should actively use
those rights, where appropriate, to bring about the changes
necessary to maximise shareholder value.
The influence that shareholder activists are having in offshore
equity markets has never been greater. Globally, company boards
are increasingly aware of and are being subject to shareholder
activism on many fronts. The value created and investment
returns derived from activist investing are seeing increasing
amounts of capital allocated to the strategy.
According to Activist Insight, funds managed by investors with
a primary focus on activism totalled US$180bn at 30 June 2016.
Since 2010, this number has more than tripled, highlighting the
strong interest in activist investing, particularly in the Northern
Hemisphere.
Funds Managed by Investors with a Primary Focus
on Activism
3.An institutional shareholder base that has historically been
very passive
Each of these attributes is discussed in more detail below.
1. A large and rapidly growing pool
of savings
Australia has the fourth largest pension savings pool in the world,
at approximately A$2 trillion, with a forecast to be circa A$6 trillion
by 20351. Government, industry and corporate funds account
for two-thirds of the market, with self-managed superannuation
funds (SMSFs) making up the balance.
Historically, Australia’s institutional investors have largely avoided
allocating funds to Australian activist investors. With the growing
awareness of the value created and attractive investment returns
available2, I expect Australia’s institutions to increasingly support
activist campaigns and allocate funds to this investment strategy.
2. A shareholder-friendly regulatory
framework
Australia’s Corporations Act (2001) is possibly the most
shareholder-friendly legislation in the world3. Important aspects
of this legislation are those that provide shareholders with
rights to affect the composition of the board and the agenda
of general meetings. In broad terms, a shareholder (or group
of shareholders) owning more than five per cent of the issued
capital of a company can:
• Call for a general meeting
• Put forward shareholders’ resolutions
• Require the company to distribute a shareholder statement
• Seek the removal of directors
• Nominate directors
Using the shareholder rights granted by the Corporations Act
is the public face of investor activism. The reality is that most
activism takes place behind closed doors and it is a tactical
decision if and when activists move the engagement to the
public arena.
3. A passive institutional shareholder base
Source: Activist Insight
Compared to many countries, Australia has a conducive
environment for shareholder activism due to:
1.A large and rapidly growing pool of superannuation savings
2.One of the most shareholder-friendly regulatory frameworks
in the world
The opportunity for activist investors to generate superior
returns in the Australian market is assisted by the passive
indexation and benchmark-aware investment styles adopted
by many institutional investors. As a general rule, institutional
shareholders will typically hold an underweight position, or no
position at all, in a company where persistent failure by the
board and management results in shareholder value being
destroyed. Even when the board of an underperforming company
is confronted, most investors have little appetite for pursuing real
change. These situations often provide fertile hunting grounds for
activist investors.
Pioneering activist investing in Australia
Provocatively, if company boards were performing their
role there would be no opportunity for activist investors4.
When companies persistently fail, they generally do so because
of a failure of one, or a combination, of the following areas of
broad responsibility of the board – strategy, governance and
capital management. The majority of company boards perform
their role with distinction and activist investors typically only come
into contact with companies that are failing in these areas. In the
context of the overall market, they are relatively few in number.
Our aim in any activist campaign is to have influence over the
company that is proportionately greater than our economic
investment. After formulating a strategy, we will usually engage
with fellow shareholders to gauge their likely support for the
changes we believe are necessary. The Australian Shareholders
Association (ASA) can be an important constituent in this process.
When the ASA represents a large number of shareholders
and holds a significant amount of proxies, the holding can be
influential on voting outcomes at Annual and Extraordinary
General Meetings. As such, we always look to engage with
the appropriate ASA company monitor as part of our activist
campaigns.
If we are able to convince fellow shareholders of the merits of
our thesis and boards see there is broad support for the changes
that we are proposing, a negotiated agreement usually prevails.
The canvassing of our proposition will typically assist us in
refining the proposal, thereby lessening the implementation
and execution risks.
Preserving and/or realising value for all
shareholders
become a well-established investment strategy like it is in the
Northern Hemisphere.
Footnotes
1 Superannuation assets totalled A$2.03 trillion at the end of
March 2016, according the ASFA, the peak industry body (www.
superannuation.asn.au/resources/superannuation-statistics).
Superannuation assets are forecast to grow over the next 20
years to more than $6 trillion (http://www.supersystemreview.
gov.au/content/downloads/final_report/part_one/Part_1_
Overview_Recommendations.pdf).
2 There are many academic studies that cite the investment
benefits of activist investing. One example is “Long-Term
Effect of Hedge Fund Activism”, December 2014, Columbia
Law Review www.columbia.edu/~wj2006/HF_LTEffects.pdf
3 Corporations Act 2001. www5.austlii.edu.au/au/legis/cth/
consol_act/ca2001172/
4 We’ve taken the liberty of paraphrasing a quote “If boards were
doing their job, there’d be no need for activists” by Professor
David Beatty in an interview for McKinsey & Co’s Insights
series entitled: Are You Getting All You Can from Your Board
of Directors? www.mckinsey.com/insights/corporate_finance/
are_you_getting_all_you_can_from_your_board_of_directors
SUCCESSFUL CAMPAIGNS
BlueScope Steel Ltd (BSL): Sandon Capital publicly
released its analysis in mid-2015 and then engaged with
the company and other shareholders. Despite difficult
conditions, management at BSL have done a laudable job
of improving value through restructuring operations and
sensibly deploying capital, and this has led to the share
price increasing by >150% since we initially released its
presentation.
Activist investing today is significantly different from the
‘corporate raider’ days of the 70’s and 80’s when the protagonists
employed techniques such as greenmail to enrich themselves
at the expense of other shareholders. The activist techniques
devised and implemented seek to benefit all shareholders equally.
Onthehouse Holdings Ltd (OTH): We campaigned in late
2014 for substantial board change, including appointment
of Sandon Capital and other nominees to the board. In
mid-2016, OTH entered into a scheme implementation
deed with a Macquarie-led consortium to be acquired at a
substantial premium.
I believe that momentum for shareholder activism in Australia
will continue to build rapidly from its current low base. The
large and rapidly growing superannuation pool, the shareholder
friendly regulatory environment, the largely passive institutional
shareholder base and the attractive investment returns on offer
will combine to ensure that activist investing in Australia will
Alchemia Ltd (ACL): We campaigned for substantial board
change in mid-2015. The new board negotiated the sale of
the company’s main undertaking and cash proceeds were
returned to shareholders via a capital return, which was
significantly above the prevailing share price when we first
acquired its stake. E
ASA BOARD SEEKING NEW DIRECTORS
The ASA board is seeking to broaden its board capability
and experience by appointing one or more additional
directors. Interested members are invited to apply.
An external advertisement has also been placed.
Full details on how to apply are available at
https://www.australianshareholders.com.au/seeking-newdirectors.
Who’s the dux of the
education sector?
By James Greenhalgh, Senior Analyst at Intelligent Investor
The verdict is in – international students already think Australia is the
clever country. Australia earns more than $20bn in export revenue from
education, making it the country’s third-largest export industry behind
coal and iron ore.
Demand is booming, with 13% growth in the number of
international students over the past year. The weakening of
the dollar since 2013 means Australia is now much better value
for studying, but that’s not all. Our high-quality universities,
laidback lifestyle and reputation for safety make for an attractive
destination.
What’s good for students might be even better for investors in
ASX-listed companies. So what opportunities exist in Australia’s
service, which sources students from Asia and the Middle East
to study at universities in Australia and other countries.
Almost 70% of revenue, however, comes from IDP Education’s
co-ownership and distribution of the IELTS ‘high stakes’ English
language test. This is no ordinary English test but one of only
a few that is globally accepted for university entry, work or
immigration purposes.
Not app-y
For such an important sector there are fewer quality investment
candidates than you might think. Indeed, there are only two higher
education-focused companies in the S&P/ASX 200 index – and
one of them listed last year.
IDP administers around one-third of the 2.5m tests undertaken
annually at a cost of about $260 each. It’s a diversified revenue
stream although competition is rising. There’s even an argument
that official tests like IELTS and its main competitor, TOEFL,
might eventually be displaced by apps such as Duolingo.
The main reason is that higher education is still largely the
preserve of government. Our 43 universities provide degrees,
while state-based technical and further education colleges
(TAFEs) provide much of Australia’s vocational education and
training (VET).
That’s unlikely over the next few years but the importance of the
IELTS test to IDP’s earnings means the competition will need
to be watched carefully. Like Navitas, IDP Education is a highquality business but not quite cheap enough to buy. HOLD.
The two elephants of the education sector, Navitas and IDP
Education, mainly provide services to international students
before they attend university in Australia or other countries.
Navitas partners with universities in Australia and overseas,
preparing international students for their degrees. The universities
obtain access to a steady flow of international students, while the
students are eased into university life at their chosen destination.
It’s been a successful and lucrative model, with Navitas’s main
business – University Partnerships – growing its operating
earnings (before depreciation and amortisation) from $48m to
$137m over the past 10 years.
The company’s main risk is that its university partners decide
to operate student preparation programs themselves. Running
programs in-house means the universities retain tighter control
over education standards, as well as gaining access to a lucrative
fee stream. Macquarie University took its program back in-house
this year and, while Navitas’s diversification ensured earnings
fell by only 2%, it’s a risk that might surface again.
Nevertheless, this is a very good business and one to put on
your watch list. Whilst currently not cheap enough to buy, the
recommendation remains HOLD.
IDP Education has only been listed on the ASX since December
2015 but it has an excellent pedigree and impressive long-term
performance. Still 50% owned by 38 Australian universities,
IDP runs two main businesses. The first is a student placement
So what of the other companies in the higher education sector?
Well, there’s daylight between the two elephants and the rats and
mice. From here on the risks rise exponentially, so be warned.
Company
ASX code
Market cap. ($m) Comment
Navitas
NVT
2,192
Reco: Hold
IDP Education
IEL
1,067
Reco: Hold
Intueri Education
IQE
28
Not interested
Academies Australasia
AKG
19
Worth further
research
Redhill Education
RDH
26
Worth further
research
Ashley Services
ASH
30
Not interested
Site Group
SIT
110
Not interested
iCollege
ICT
8
Not interested
UCW
15
Not interested
UCW
The remaining companies are mainly private providers of
vocational education, a sector still in its infancy.
Unfortunately, government de-regulation of the VET sector a few
years back unleashed many opportunistic and untested education
providers that flocked to the sector to take advantage of public
funding. By 2014 initial public offerings of VET businesses were
float-bombing the ASX.
Unscrupulous student recruitment practices, aggressive business
models and insufficient attention to long-term reputations was
the result.
Former market darlings Vocation Limited and Australian Career
Network – both of which floated on the ASX during the 2014
boom – have already gone into administration. Others like Intueri
Education Group, remain on life support. The government has
since cracked down on the VET sector but the fallout continues.
Few private education providers have emerged unscathed – and
the risks remain very high – but a couple of the smaller college
operators could be interesting opportunities.
Whilst very small, Academies Australasia Group runs 18
colleges in Australia and Singapore. Debt levels are too high,
and the company will report a loss in 2016 but directors are
showing confidence by buying shares on market.
Also interesting is Redhill Education, which has positioned
itself at the premium end of the private vocational education
market and, interestingly, Academies Australasia owns a 10%
stake. Redhill’s earnings will fall in 2016 but the absence of debt
suggests it’s one of the better quality companies.
Elsewhere, there’s been some director buying in labour hire and
training group Ashley Services – another 2014 listing, although
management changes and multiple profit downgrades are a
worry. Site Group, which provides training to clients in the
energy, mining and construction sectors, is still bedding down
acquisitions and its international operations add risk. iCollege
is apparently ‘positioned to become one of Australia’s leading
educators’ but is a very long way from it and UCW’s acquisitiondriven strategy isn’t reassuring.
So what can we conclude from this roundup of the ASX-listed
Navitas and IDP Education are the standout candidates for your
watch list while the listing of other providers like Study Group –
a company similar to Navitas – should deepen the sector. But
there are slim pickings from the slew of floats of a few years ago.
The larger companies might end up the big winners. Navitas’s
management hinted earlier this year that it might be interested
in acquiring vocational training businesses down the track and
sector consolidation looks inevitable.
Whilst small now, the private education sector almost certainly
has a big future. So keep an eye on the large companies and a
few of the promising smaller players. E
Disclosure: Staff members may own securities mentioned in this
article.
James Greenhalgh is a senior analyst with Intelligent Investor. This
article contains general investment advice only (under AFSL 282288).
Authorised by Alastair Davidson. To unlock Intelligent Investor
stock research and buy recommendations, take out a 15-day free
membership at http://landing.intelligentinvestor.com.au/asa
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Gold is the strongest
form of money
By Peter Hall AM, Founder & Chief Investment Officer at Hunter Hall Investment Management Limited
There are some fundamental reasons why the gold price has more
upside. Here are some golden opportunities to consider.
We started our journey investing in gold in 2014, observing that
a stock we sold out of the funds in 2012 – at average prices of
over $2 per share – had fallen to below 10c. That stock was St
Barbara Limited.
As we researched St Barbara, we discovered that the gold sector
was profoundly out of favour. There were a number of stocks
selling at low valuations compared to their likely cash flows at
the current gold prices.
We did not invest with the expectation that the gold price would
rise. Rather, it was on the premise that it would stay flat, or go
down. We purchased two stocks – St Barbara and Doray Minerals
– which shared the characteristics of the highest production
grades and margins so they would still be profitable even if the
gold price fell.
Why gold should rise
However, at the same time, we recognised the potential for the
gold price to rise at some, unknowable, time in the future. For
two reasons. First the amount of gold in the world is growing
at a very slow rate, particularly when compared to the rate of
growth of paper money, given fiscal deficits, quantitative easing
and the growth of derivatives. Put simply, if the volume of paper
money is growing quickly and the volume of gold (a form of
money) is rising slowly, the price of gold, expressed in paper
money, will inevitably rise.
The interest rate game
Interest rates have declined to very low levels and many
government bonds now have negative real interest rates. This
threatens the balance of interest rates and currencies between
the Big Four. Whenever the Americans put interest rates up
the Chinese devalue their currency and that means their goods
become cheaper which greatly impacts the industrial activity of
Japan, Europe and the United States.
China – the workshop of the world
Over the last 40 years, China has become the workshop of
the world through innovation, human enterprise and central
government assistance.
The graph shows the share of world trade of China and Japan.
In the late 80’s, Japan had a 10% share of world exports. This
has fallen to about 2.5%. China, on the other hand, has risen
to 12.5%, winning share from Japan, Europe and the United
States. Wealth is being transferred to China from the other three
and is destabilising their relationships at many levels.
Japan and China’s Share of World Exports (%)
The second reason for gold to rise is that people want to hold
more gold in an increasingly risky and incomprehensible world.
The world is divided into four large economic and political blocs
- China, Japan, Europe and the United States. Of course there
are many other players but the balance of the world lies in the
relationships between these four. For the last few decades they
have lived in an uneasy and fragile truce where the relativities
of interest rates, currencies, trade and capital flows have been
acceptable to all.
However, I used the word “fragile” to indicate that balance is
not guaranteed and is vulnerable to shocks. One such shock
has just occurred in the form of Brexit which is likely to lead
to significant changes to the European Union and the Euro.
One possible scenario is a collapse of the Euro and/or the
European banking system. This could be followed by a crisis of
national finances as sovereign debt increases rapidly, possibly
exacerbated by a recession which would reduce tax revenues
and increase government spending. The only way out would
be further creation of paper money and further degradation of
its quality.
Source: Grants Interest Rate Observer Conference,
April 2016. Scott Bessent, Keysquare
The bar bell portfolio structure
Hunter Hall is a value manager with a flexible investment mandate
that can invest anywhere in the world. That generally leads us
to investing in small to mid-cap stocks. The stocks that have
driven most of the performance have been stocks where the
ratio between risk and reward is tilted towards reward. These are
stocks that have a payoff profile by having operating or financial
leverage, they may have debt or if sales go up or down there is
a big impact on profit or loss.
Our Value Growth Trust and Global Value Limited portfolios have
a bar bell structure. Part of the portfolio is in the game of making
returns, whilst another part is risk adverse. Almost a quarter of
the portfolio is in cash (20-25%), 20% in gold companies and
the remaining 55%-60% is invested in other equities.
The gold rationale
We think gold has a wonderful future because the ratio of
paper money to physical gold is in gold’s favour. As mentioned
previously, more and more paper money is being generated as
governments overspend and keep interest rates low.
You would think that as the price of something goes up production
would increase but this has not been the case with gold. Mines
are going deeper, which is costing miners more money; gold
is so rare that it is economic to mine ore with one part of gold
per one million parts of rock! (1 gram a tonne); there is only a
finite supply of gold; and there haven’t been any significant
technological innovations in gold production since the 1980s
when heap leaching was developed. The bottom line is that the
rate of gold discoveries has fallen and production is growing very
slowly even while the gold price has moved up considerably.
This chart shows how gold discoveries have fallen over time,
production remains weak, and the price of gold has been rising.
Gold Discoveries—Fallen Since 1980s
April 2016, Pierre Lassonde, Franco Nevada Corp.
DISCLAIMER: The information contained in this report is based on research by Hunter
Hall Investment Management Limited (Hunter Hall) (AFSL: 219462) and represents the
best information available at the time of writing. Hunter Hall is the issuer of financial
products. This report does not take into account a reader’s investment objectives,
particular needs or financial situation. It is general information only and should not
be considered as investment advice and should not be relied on as an investment
recommendation. The relevant PDS should be considered (available at www.hunterhall.
com.au) when making investment decisions. Past performance is not indicative of
future performance.
The demand for gold
Gold demand is rising. In 1980, demand for physical gold was
about 1,800 tonnes a year. It is now over 4,000 tonnes a year,
rising around 3% per year since 1980.
Part of the reason for the recent spike in the gold price is to do
with interest rates, because when you have negative interest
rates which we have in a large part of the world’s bond markets
- why not put your money into gold rather than a currency that
gives you a negative return?
Gold demand up about 3% a year since 1980
April 2016, Pierre Lassonde, FrancoNevada Corp.
To our initial portfolio of two gold stocks (with high margin gold
production which make up 75 - 80% of our gold portfolios) we
have added some more speculative plays which make up 20%
- 25% of our gold portfolios. Beadell Resources owns the third
largest mineral mine in Brazil and has substantial exploration
potential. Two other names we hold are Blackham Resources
and Aphrodite Gold.
Australian domiciled St Barbara has been a strong performer
for Hunter Hall; we have turned $8m into $221m at the time
of writing. St Barbara is one of the lowest cost gold miners in
Australia; it has large reserves; it was financially and operationally
leveraged when we acquired our stake; but it has very impressive
management that has done a brilliant job in turning it around.
The long term development of that company will be to further
pay down debt and then deploy the free cash. Looking at the
valuation numbers, our calculus of the current price is about 4x
their cash flow in 2018, so there is definitely room for the stock
price to move up. E
While this document is based on information from sources which are considered
reliable, Hunter Hall has not verified independently the information contained in the
document and Hunter Hall and its directors, employees and related entities do not
represent, warrant or guarantee, expressly or impliedly, that the information contained
in this document is complete or accurate. Except insofar as liability under any statute
cannot be excluded, Hunter Hall and its directors, employees and related parties do
not accept any liability for any error or omission in this document or for any resulting
loss or damage (whether direct, indirect, consequential or otherwise) suffered by the
recipient of this document or any other person. Further information can be found at
www.hunterhall.com.au or by emailing [email protected].
Invest like the Future Fund
By Freya Poynton, CFP Financial Adviser and Coach at Sornem Private Wealth
The Future Fund hasn’t been voted the worlds’ best sovereign investor for
no reason. The fund started in 2006 with $60.5bn and has since ballooned
to $117bn. Investors might be able learn a thing or two from David Neal
and his team.
The Future Fund was established with the combination of budget
surpluses, when we occasionally had one, and the proceeds
from the sale of the government’s holding of Telstra. The Fund
was launched with the sole purpose to support the unfunded
superannuation liability, the amount owed to public servants
who hold defined super accounts that the government has not
set aside funds to pay. The debt is forecast to hit $195 billion
by 2020. The fund only allows withdrawals after 2020, unless
an agreed Target Asset Level is met. But this is not the purpose
for the fund or even really an objective, but rather a process
if performance is uncharacteristically high. This is important
because the time and return requirements set the entire strategy
for the fund.
Focus on your long-term objectives
The Future Fund has performed 7.4% pa since inception. Pretty
impressive when compared to the market’s performance over the
last 10 years. The ASX-200 has returned 4.25% pa since April
2006. Clearly value can be found moving beyond benchmarks.
Running a benchmark unaware portfolio that is focused on
just buying high quality assets and employing solid investment
strategies can pay off in the long-term, although may lag in the
short-term. So how exactly does the Future Fund manage to
significantly outperform markets? By matching its long-term
objectives with its investments.
The fundamental difference between the Future Fund and
everyone else is that most investors have a tendency to focus
on short-term returns, yet its objectives are generally longterm. Advisers and Super Funds contact members annually
to discuss the portfolio returns over the 12 month period. If
returns have not been positive clients can easily go elsewhere.
So the Advisers and Super Funds tend to focus on investing in
assets that will provide returns over the short-term. The Future
Fund on the other hand has one main objective, to cover the
deficit by 2020. Although it reports annually it doesn’t have the
risk of losing clients or members, so it can remain focused on
aligning investments with objectives. There is often a tendency
for investors to be blindsided by short-term noise in the media
that can trigger decisions without careful consideration and in
turn can destroy value. The Future Fund has developed smart
incentive systems that include tracking long-term performance
compared with objectives, setting longer-term benchmarks and
aligning rewards paid to managers for longer-term performance.
These systems can be implemented by most investors by
asking advisers to focus on reporting on long-term performance,
and tailoring remuneration on the basis of meeting long-term
objectives.
Invest in more illiquid and cash assets
By altering its investment horizon to the long-term, the Future
Fund was able to access structural risk premia, reduce
behavioural errors (buying high, selling low), take advantage
of macro themes and ride out market fluctuations. The Future
Fund cites both Ang and Kjaer (2011) and WEF (2011) in their
strategy papers. Both discuss the inclusion of illiquidity premia
which is an additional return that is paid to reward investors who
hold long-term illiquid assets. A premium we tend to avoid. The
Future Fund has 30% allocated to illiquid assets such as: Private
Equity, Alternatives, Infrastructure and Timberland. SMSF’s have
around a 4% combined allocation in these asset classes. Illiquid
assets pay an illiquidity and investment risk premia, rather than
volatility and price risk premia (where the price does not equal the
intrinsic value) found in listed shares. However the Future Fund
does not discount the importance of liquidity to take advantage
of future opportunities holding what looks like an over allocation
of 15% cash. Cash may seem like a passive investment but the
fund actually holds the cash in foreign exchange. It identifies
Yen and the US dollar as the most countercyclical currencies
and is a solid source of returns. In aggregate, a mix of cash and
illiquid private assets can be equivalent to a portfolio of equities
with a reduced level of volatility.
Move from Australian to global equities
Australian investors tend to have a domestic equity bias with
around 45% invested in Australian Equities and just 1% in global
equities. Compare this to the Future Fund which hold 8% and
30%, respectively. It’s a huge opportunity that investors seem to
be missing. The Australian share market represents a mere 2%
of the global equity market and is heavily weighted towards the
big banks and miners. Whilst dividend imputation and transaction
costs provides some rationale, there are diversification and
risk-mitigation benefits by allocating beyond the Australian
equity market. But, of course, the challenge of selecting quality
companies is more difficult when looking outside Australia - as
there are some 45,000 listed companies. So how do you pick
the right companies?
Employ fund managers
The common belief is that we can outperform by active stock
picking. And why pay someone when you can do it yourself?
But the reality is that there are fund managers who are far more
experienced, and have greater access to more information than
your common Joe. Despite the higher cost, a fund provides a
greater opportunity for smoother and higher returns. Whilst
most industry funds and financial advisers are internalising
investment management through direct holdings, the Future
Fund is doing the opposite. The fund employs 113 managers and
paid $268million in management fees last year. The Future Fund
understands that reducing management fees is important, but it
is only part of the equation. The most important component is
the net impact of employing managers. In an interview with the
AFR, David Neal stated that “we believe our focus on building
the best total portfolio trumps any potential cost saving from
internal management”. Make no mistake choosing the right
managers is no easy task. The managed fund universe is massive
and vastly larger than the amount of listed companies. There
are even funds of funds (managed funds with managed funds
inside of them). When choosing a manager it is important to refer
back to your objectives and find managers who align with these.
Do the assets produce income or growth? Are the managers
active or passive? Does it have a small or a large number of
holdings? Value or growth investors? Short or long only? What
are the assets? Fees? Experience? And last but not least, the
funds historical performance? Utilising investment managers
not only allows access to the most qualified investors but also
enables access to markets that would otherwise be inaccessible
and costly.
What can investors learn?
The Future Fund can be used as a model portfolio. Although there
are some assets that will be inaccessible due to the size of the
Future Fund. Assets like alternatives, non-listed infrastructure
and timberland will be difficult to purchase but these investments
have a clear message - add more investments that aren’t affected
in a share market crash. Assets like farmland, social impact
bonds, peer-to-peer lending and specialist strategy managers, like
targeted return funds, can be a great way to diversify. The Future
Fund’s success has been its ability to be clear about its long-term
objectives, match these with long-term diversified investments,
and invest in strategies and markets that meet its goals. And it
does this better than anyone else. E
Dear Editor
Thank you for publishing my report on the tours that we do to companies in South Australia, and I know that it
keeps the members informed on various industries, but I have found a number of members joining the tours have
taken a new interest in the ASA as they don’t usually come along to regular meetings.
The tours to Silver Fleece captured everybody’s interest as they make not only high quality school and sports
jumpers but scarves, baby, granny, and sports blankets, and the tour is now available to every member with email,
just go to [email protected] and click on factory, and you can do a 4.5 minute tour a regular tour takes one
and a half hours.
Ron Andrews
SA Site Tour Coordinator
ESTATE PLANNING SERIES
I’m not dead yet – the Advanced Health Directive
By Christina Wolfsbauer, Senior Associate and Peter Bobbin, Managing Principal at Argyle Lawyers
What does quality of life mean to you?
It means different things to different people. How can you be sure
that your wishes regarding your quality of life will be honoured
if you can no longer communicate? Putting your wishes into
writing will help to provide this security.
Often referred to as an “Advanced Health Directive”, a
“Declaration of Life” or “Living Will”, such a document allows
you to influence the decisions regarding your future medical
treatment at a time when you cannot otherwise communicate
your needs. For example, it may dictate the point at which you
would like artificial life support systems to be removed. Such
documents can be particularly important in “blended family”
circumstances where differing views may arise.
Dying is an emotionally difficult topic and hence many do not
address it. However, it is a subject which cannot and should
not be avoided.
An informed decision about the medical treatment you wish
to allow, or refuse, should be made now if you want to ensure,
insofar as possible, your quality of life. Often people will have
strong views as to medical treatment they would like to receive,
and which they would not. They may wish to direct certain
medical procedures to occur or not to occur. However, at a given
point of time, due to their physical and mental condition, they
may be unable to communicate those directions.
The legal position of these documents in Australia is not
settled and differs between each State and Territory. Clearly,
the directions that you give in such document can only be
followed if they are legally capable of being followed under the
laws prevailing at that time and must be considered in light
of the various rules and regulations that medical practitioners
must adhere to.
As an example, we will consider the position in Queensland,
Victoria and New South Wales.
Queensland has specific legislative guidance within the Powers
of Attorney Act 1998 (QLD) which states that an Advance Health
Directive must meet certain requirements and be in the approved
form. One of these requirements is a certificate signed by a doctor
attesting to your capacity at the time of making the document.
The Queensland legislation also specifically provides that a
direction in a valid Advanced Health Directive will have priority
over a general or specific power for health matters given in an
Enduring Power of Attorney.
In Victoria, statutory recognition of Advance Care Directives
is currently under consultation. There is currently no specific
legislation or standard form in Victoria dealing with Advance Care
Directives. Victoria does however have specific legislation which
allows a person to complete a “Refusal of Medical Treatment
Certificate”.
Similar to Victoria, New South Wales does not have specific
legislation dealing with Advance Health Directives. Rather, the
Guardianship Act 1987 (NSW) uses the concept of ‘responsible
person’ being the person health practitioners must consult with
if you cannot give consent to medical treatment yourself. The
Act specifies a hierarchy of ‘responsible persons’, being:
1. the Enduring Guardian (provided the appointing document
provides for the guardian to exercise the function of giving
consent to carrying out medical treatment); otherwise
2. the spouse (provided the relationship is close and continuing);
otherwise
3. the person who has the care of the person; otherwise
4. a close friend or relative of the person.
The approach in NSW does not necessarily bind the ‘responsible
person’ to follow your directions if you have previously
communicated these via a written document such as a
Declaration of Life or Living Will (as they are often referred to in
NSW). Rather, the responsible person concept simply refers to
who medical practitioners must seek consent from in the event
you cannot provide it.
Given the differing positions in each State and Territory, it is
important to cover yourself as best as possible if you wish to have
the opportunity of communicating your wishes. Why is a lawyer
telling you the importance of documents outlining your medical
wishes? Because failing to understand the legal requirements
may result in such documents failing at the opportune time.
The best approach will be to do the most that the relevant State/
Territory legislation allows. In Queensland, this will be complying
with the legislative requirements for a valid Advanced Health
Directive. In Victoria and New South Wales, this will be ensuring
that you have a valid appointment of Enduring Guardian and
making the instrument appointing the guardian tie to a further
document setting our your wishes (i.e. a Declaration of Life,
Advanced Health Directive or Living Will etc). Other States and
Territories may have other requirements and you should seek
advice to ensure you put yourself in the best position possible
to have your directions adhered to.
Don’t forget, it’s your life, these documents can ensure your
wishes are met and provide welcome guidance to family members
in difficult times. E
This is the third article in the ESTATE PLANNING SERIES. Next month’s
article addresses how to avoid the testamentary trust.
By Anna Candler, Managing Director at Six Hats Investor Relations
Warren Buffett likens retailing to building a castle. You need to
build a castle that people want to visit and then surround it with
the widest possible moat to protect your castle from marauders.
The castle for a retailer is the mixture of brands and products it
stocks, and the demand for those products. On the other hand,
the moat will consist of things like company loyalty, pricing and
distribution strategy, agility in response to market trends and
business margins.
I for one like the analogy. So how does this description give
investors an insight into what happened at Dick Smith? Can it
guide us when we look at other retailing stocks?
The Dick Smith castle
The moat never really existed
Despite all the changes in the IT and electronics sector, the Dick
Smith castle has not changed substantially since its foundation.
The company remained firmly wedded to offering a broad mixture
of lower end retail brands; thinking we would always remain
loyal to lower prices.
The reality for Dick Smith is that it thought that it was still a
destination castle. And to justify the $520 million float price it
opened more stores, broadened its products, and promised
its investors a golden future. So the moat was neither deep
nor broad. Everything had to go right to make this castle safe.
While the choice of products stocked is being blamed for the
company’s demise, perhaps it is far simpler - we stopped visiting
the castle. But where is the fun in blaming the consumer?
When you sit back and look you realise that there are many other
electronic castles (Kogan, eBay, Harvey Norman et al); every
one of them chasing the same visitors and all of them touting
lower prices. Moreover, some of the more lucrative products
(Samsung, Apple) are building their own retail castles wanting
direct access to the same visitors. So there was no real need
to shop at the Dick Smith castle anymore.
Building a moat
Every castle needs a moat or some proactive defence strategy.
The only problem is that moats are not cheap. Whether it is
better back-office and product management systems, better
advertising, they all cost money, and that money can come
from one source – the visitors to your castle. Additionally, if your
castle is listed, the money has to feed your investors as well.
Relisting
– an opportunity to protect the castle
Perhaps we will never know whether there was a genuine
business case for the products, or were many of the decisions
made because of the margins they could generate? The Dick
Smith buying team is not the first, and won’t be the last, to get
the product mix wrong - just look at what is on any sales counter.
The challenge for any retailer is to get the supplier to pay for
absolutely everything – the marketing, the floor space, and
discounts to attract customers. While Dick Smith lacked the
ability to drive as hard a bargain as Coles and Woolworths, it
took how it used discounts to a new level. After having paid for
the stock, management asked suppliers for a rebate claiming
they would discount the price to customers. The only problem
was that Dick Smith did not discount the stock, and banked
the rebate as revenue thereby inflating their business margins
and revenues.
The problem is that we as consumers are fickle creatures –
there is almost no brand loyalty (Apple aside) we are fixated on
price and convenience and want what we want now with the
minimum of effort and at the lowest price. So the Dick Smith
listing should have been an opportunity to rebuild its castle and
its moat. It did neither.
While getting rebates is a standard practice, the reason the
company analysts were upset was that there is no way of knowing
if other companies are doing something similar. The irony is
that if the products had sold and Dick Smith had prospered
investors would have rewarded management because of their
business margins.
The fact is to succeed as an electronics castle your management
team has to be the predictor of consumer trends, and that is a
very difficult way to make consistent money. As a visitor, if you
decide to buy Samsung, do you really care which castle you visit?
Was Dick Smith on your top five list of castles at which to shop?
The lesson is that no matter the castle (think Woolworths) you
need to think constantly about the depth and breadth of the
moat. After nipping at the heels of Coles and Woolworths for
some years, Aldi Castle is now starting to take shape, their
moat in the shape of smaller stores, smaller product ranges is
deep and broad. E
AUSNET SERVICES
AGM
Settlement following serious board
upheaval last year
Following the restructure 15 months ago from a cumbersome triple corporate identity to a single identity,
the resolution of the Advance Metering Infrastructure (‘Smart Meters’) roll out woes and an adverse
tax judgement, all of which impacted on the 2015 performance, this year’s outcome has largely been
devoid of negative factors. This plus a continuation of favourable energy regulatory price determinations
and the abatement of board upheaval enabled the company to complete a satisfactory year.
1 year chart
MONITORS: T
om Rado,
John Whittington
& Mike Robey
Date
21 July 2016
Venue
Melbourne
Convention &
Exhibition Centre
Attendees 37 shareholders
plus 40 visitors
ASA
proxies
1.7m shares from
72 holders
Value of
proxies
$3m
Proxies
voted
Yes
Market cap $6.1bn
Pre-AGM
meeting
Yes, with Chairman
and executives
MACQUARIE
AGM
The two main shareholders, Singapore Power International and China’s State Grid, put last year’s
dramatic disagreement with the board behind them. In addition, an independent Australian Chairman,
Peter Mason (ex AMP), was appointed, who conducted a pleasant and friendly meeting.
We commended the company, including all of its employees, for very satisfactory results and welcomed
the new Chairman. As usual, the only questions put to the Board came from the ASA representative.
On the bush-fire mitigation programme, the company confirmed that the new much touted Rapid Earth
Fault Current Limiter (REFCL) will not work on high voltage (HV) Single Wire Earth Return (SWER) lines.
However they are working on other fronts but within the budget approved by the regulator, which
precludes the replacement of SWER lines with HV multiphase lines enabling REFCL to be used.
On the impact of the Australian Energy Regulator’s (AER) recent price determination on future company
profit, the Managing Director advised that the unfavourable Electrical Transmission draft decision will
be thoroughly examined and further evidence justifying the expenditure necessary for network reliability
and safety will be supplied to the AER for its final decision.
All the resolutions were supported by the ASA and passed comfortably. The Remuneration Report
was extensively and clearly set out. Short term incentives were based on a number of disclosed
realistic measures. Long term incentives were based on three year performance measures of TSR,
EPS, Return on Invested Capital and Interest Cover Ratio. The ASA voted in favour whilst highlighting
some misgiving on a few issues, the principal being a 36% increase of non-executive directors’ base
fees and sought assurance that although it was due to catch-up, that there will be no increase in the
next few years. This assurance was given.
New AGM format engaging and well
received by shareholders
Macquarie presented this year’s meeting in a new format which was warmly received by most
shareholders including the ASA. The meeting was opened by the Chairman who provided the usual
overview of performance and was followed by the CEO, who, assisted by some business unit heads
from the floor, gave an in depth update on operations.
Highlights included assurance on a continuation of the group’s conservative capital position (with
over $3.5 billion surplus based on the Basel 3 framework) and profit guidance for 2017 which he said
would be a similar result to 2016.
3 year chart
MONITORS: P
eter Metcalf &
Allan McAskill
Date
28 July 2016
Venue
Sheraton on the
Park, Sydney
Attendees 173 shareholders
plus 137 visitors
ASA
proxies
425,000 shares
from 355 holders
Value of
proxies
$31.6m
Proxies
voted
Yes
Market cap $24bn
Pre-AGM
meeting
Yes, with Chairman
and Director
The directors standing for re-election addressed the meeting with their credentials and before adjourning
the meeting for morning tea the Chairman displayed the proxy voting results for all items of business.
The adjournment of the meeting gave shareholders an opportunity to look at the booths set up to
explain some of the company’s lines of business and meet with executives and Board members
Following the adjournment, the Chairman addressed the formal items of business and invited questions
from the floor. A time limit on questions would be an improvement here. The ASA raised the quantum
issue (the CEO gets circa $20 million) and we were advised by the board that the company benchmarks
its quantum to international investment banks.
There was a persistent line of questioning from an interest group on the risks associated with fossil
fuel investments and the CEO spent quite some time explaining how the company measures and
manages all types of business risks.
There were also a number of questions on political donations which are not favoured by the ASA.
The meeting was told that Macquarie’s cash donations, as distinct from contributions for attendance
at political events did not exceed $20000 and are confined to Australia only, such that Macquarie’s
cash political donations were immaterial when compared to the $305,000 spent on political events
and functions.
Along with most other shareholders, we supported all items of business. All resolutions were passed
by over 99% of the voters except the Remuneration Report which received which was marginally
lower at 98.7%.
Share price jumps after an unsurprising AGM
On the day of the AGM, the share price jumped from around $1.75 to a high of $2.22 before settling
at about $2.00. This was all on the basis of no surprises or bad news.
PROGRAMMED
MAINTENANCE AGM
The Chairman described how this was a transitional year following the integration of the Skilled
operations which were included in the accounts for only six months. Both he and the CEO were
positive about the savings achieved so far and the larger scale of the combined business. The CEO
went on to highlight the diverse sectors in which PRG operates and emphasised its small volumes
in the resources sector. As a result of decline in the oil and gas sector, the marine division has been
wound back and will now be incorporated into the operations and maintenance division.
Finally the CEO confirmed the forecast that under current trading conditions he expected that the
company would achieve EBITA of $100-$110 million in the 2017 year.
We asked the board to examine ways of returning franking credits to shareholders and increasing the
dividend as a percentage of earnings. The Chairman replied that both aspects were under regular
review but at the present the board believed that reducing the company’s debt was a priority and once
that was done dividend payout and franking credit return would be re-examined.
We asked the auditor to comment on the methodology that was used to confirm the valuation of
goodwill in the balance sheet, noting that it was by far the company’s largest asset at over $500 million.
The auditor provided a suitable answer but predictably reminded the meeting that the preparation of
the accounts was the responsibility of management and that he was satisfied with the assumptions
made and methodology followed.
We spoke against the Remuneration Report, specifically the LTI plan, as there are several items which
do not accord with ASA guidelines. Other shareholders did not support our view and consequently
the report was adopted with only a 2.8% against vote.
There were four directors standing for election/re-election. All were elected convincingly with 99.5%
or more in favour.
The most eventful occurrence at the AGM was a vociferous room invasion by approximately 30
officials of the ETU. They were protesting about the outsourcing of maintenance work by CUB at their
Abbotsford Brewery in Melbourne to PRG. The noisy protest was handled capably by the Chairman
and was over in about 10 minutes.
Brickbats
Bouquets
To Link Market Services for not transferring
To former ANZ CEO John McFarlane for calling
for a rethink of company culture and a shift from
the focus on short term performance, which can
lead to the wrong behaviour and decisions, to
superior performance over the longer term. ASA
agrees with this sentiment and that companies
should ensure that their actions are sustainable
and focussed on long term value creation.
across ASA’s standing proxies from Computershare
when Macquarie changed its share registry last
year. Luckily, we brought this to the attention of
Macquarie’s Company Secretary, who promptly
raised the issue with Link. It was only then that
Link looked into the matter and transferred the
proxies across. We wonder whether any other
standing proxies have been lost as a result of
a change in share registry! We are pleased that
Macquarie was prompt to rectify the situation so
that proxies were counted at the AGM.
To OceanaGold for paying its recent dividend
in USD to all of its shareholders regardless of
where they were based, meaning Australian-based
shareholders were required to pay a substantial
fee to cash in the USD cheques, or to open a USD
bank account. We understand many shareholders
have complained about this issue to the company,
so we hope the Board will reconsider its position
for any future dividend.
To the Surfstitch Board for overseeing the
company’s share price fall from highs of almost
$2.00 in November 2015 to around 20 cents at
the time of writing. The CEO left unexpectedly
in March 2016 and soon after, joint CEOs and a
Chief Operating Officer (COO) were appointed.
Since then, the COO has been promoted to
CEO and a new Chairman Sam Weiss has been
appointed. Following a period of change and
earnings downgrades, shareholders will have to
wait and see whether the new CEO and Chairman
can turn around the company.
1 year chart
MONITORS: Geoff Read &
Stephen Weston
Date
27 July 2016
Venue
Parmelia Hilton
Hotel, Perth
Attendees 12 shareholders/
proxyholders plus
28 visitors
ASA
proxies
435,000 shares
from 68 holders
Value of
proxies
$870,000
Proxies
voted
Yes
Market cap $530m
Pre-AGM
meeting
Yes, with Chairman
BRICKBATS
& BOUQUETS
To Macquarie for holding an engaging AGM in
a new format which was less formal and gave
shareholders more information about what
the company does.The tea break also allowed
shareholders to learn more about the company’s
lines of business and meet with executives and
Board members.
To Peter Warne, Outgoing Chair of OFX Group
Ltd, for acknowledging he may be overloaded
and voluntarily retiring from the Chairmanship of
OFX (formerly OzForex Group) to concentrate on
his Chairmanship of Macquarie Group and other
commitments. He has done a sterling job for
shareholders of steering OFX through the Western
Union unsolicited takeover bid and the resignation
of the CEO and some executives after Western
Union’s departure. We wish him well for the future.
Members are welcome to send in their suggestions
to [email protected]. Comments included here do
not necessarily reflect those of all members.
EQUITY
Make your
vote count
Give the ASA your proxy
Your vote is important this upcoming
AGM season
You may know that as part of the formal business of an
AGM, a number of resolutions are discussed and voted on by
shareholders. Some of the resolutions are mandatorily required
on an annual basis, such as the re-election of directors and
adoption of the Remuneration Report. Others are only required
in situations where the law seeks to protect shareholders by
giving them a specific right of approval (eg selective buy backs,
institutional placements, transactions with related parties), so
you will not always see these resolutions.
In either case, these resolutions are put to shareholders for
a vote because they relate to important matters affecting all
shareholders. The ability to vote on these resolutions is a
fundamental right of shareholders which should be exercised,
regardless of the size of your shareholding. Every vote counts
and there really is no reason why you should let your votes go
wasted.
If you don’t know how to vote,
ASA can decide for you
Reading through a Notice of Meeting and making an informed
decision on how to vote can be daunting and time consuming,
which is why ASA’s company monitors do that work for you.
By appointing the ASA as your proxy, ASA will vote your shares
in accordance with your directions (if a directed proxy) or the
voting intentions for each AGM published on our website (if an
open proxy).
To appoint the ASA as your proxy, all you need to do is write
Australian Shareholders Association in the box where you write
your proxy’s name (if using a paper Proxy Form) or type in the
name of your proxy (if using an online form).
ASA generally monitors and attends meetings of ASX 200
companies – you can view our list of monitored companies on
the ASA website https://www.australianshareholders.com.au/
companies
Tired of filling out forms, appoint the ASA as
a standing proxy
If you don’t want to lodge a proxy form every time you receive
a Notice of Meeting, you can appoint the ASA as your standing
proxy. A standing proxy is an ongoing default instruction to the
share registry which removes the hassle of filling in proxy forms
for every meeting.
Standing proxies are easy to fill in and send back to the registry.
Both Computershare and Link Market Services have their own
form, so you will need to look up the share registry for your
company’s shares. For other registries such as Boardroom, there
is a generic form. The forms are available on our website under
“Company monitoring > ASA as your proxy > Standing proxies”.
It is important that the name on your form is exactly the same
as the name of the securityholder under the CHESS records.
Once you’ve submitted the forms, you won’t need to worry
about voting your shares again.
Commonly asked questions
I do not know whether to vote FOR or AGAINST a resolution.
What do I do?
You can leave your proxy “open” (an undirected proxy) by not
marking any of the boxes. If you’ve appointed the ASA as your
proxy, this means ASA will vote your shares in accordance with
our published voting intentions.
How do I know whether my standing proxy form has been
received by the share registry?
Registries do not issue confirmation letters and the ASA is
not notified of who has appointed the ASA as a proxy, so you
should contact the share registry to confirm that your standing
proxies are in place.
I have appointed the ASA as my standing proxy but am still
receiving the AGM package of documents. Can I ignore
them?
You will still receive the AGM documents, whether you have a
standing proxy or not. This will allow you to revoke your proxy for
a particular meeting or give us a directed proxy. We encourage
you to read the AGM materials but you can ignore the proxy form
included in the package if you wish to retain your standing proxy.
I recently bought more shares in the company. Do I need
to fill in a new standing proxy form?
No. If you acquire more shares under the same HIN or SRN
(such as via a dividend reinvestment), your standing proxy will
apply to these new shares. Please note however you will need
to complete a separate standing proxy form if the holding is
under a different HIN or SRN.
How do I revoke my standing proxy?
Simply write to the share registry and advise them of your change.
Can I still attend the AGM if I have appointed the ASA as
my standing proxy?
Yes, you can still attend meetings and sign in as a “visitor”,
although this does not come with rights to ask questions or vote
because the voting rights remains assigned to the proxyholder.
You can also attend as a “non-voting shareholder”, which allows
you to ask questions or make comments, without voting. Or, if
you like, suspend or revoke the proxy at the registration desk.
This will allow you to also vote from the floor of the meeting.
The standing proxy will continue for other meetings of the
company. E
Short selling
By John Campbell, ASA Monitor Panel Member
With a few exceptions, short selling is prohibited under the
Corporations Act in Australia. The main exception relates to
covered short selling, which is permitted provided the seller
has ‘a presently exercisable and unconditional right to vest the
product in the buyer’ at the time of sale. Covered short selling
involves the short seller holding the relevant securities on loan
from the registered owner and commercially this involves the
short seller providing security and paying a fee to the owner for
the period of the loan. Short sellers are required to report their
short positions to ASIC on a daily basis, and ASIC publishes a
daily report (released 4 days in arrears) which can be found on
their webpage: http://www.asic.gov.au/regulatory-resources/
markets/short-selling/short-position-reports-table.
The following table lists the top ten stocks short sold by value
and percentage of issued capital on 11 July 2016 – the reader
should note that this date was before the reporting season
whereas this article will be published after results are released.
Short sellers may well have liquidated their positions by the time
you get to read this so this information is out of date as regards
the companies named. I provide it only to give an indication of
the level of short positions in Australia and the extent of short
selling in individual stocks.
Top ten short sold by value:
Code
#m shares
% issued
$m
CBA
37.20
2.17%
2,756.87
WOW
97.30
7.61%
2,073.46
WBC
56.78
1.70%
1,657.44
ANZ
56.75
1.94%
1,357.39
BHP
57.90
1.80%
1,134.86
1,012.00
WES
24.68
2.19%
OSH
138.90
9.12%
958.40
RIO
16.70
3.94%
827.18
FMG
140.58
4.51%
572.15
TLS
96.75
0.79%
548.55
Total top 10
12,898.30
Top ten short sold by percentage
of issued shares:
Code
#m shares
% issued
#m shares
% issued
MYR
141.29
17.20%
Code
BAL
9.49
9.82%
WOR
32.64
13.29%
CVO
30.76
9.68%
MTS
118.03
12.71%
OSH
138.90
9.12%
FLT
11.68
11.58%
WSA
24.69
9.11%
MND
10.24
10.93%
IFL
27.34
9.11%
There were 439 stocks listed in the ASIC short positions report for
11 July 2016 and the total value of the 439 short sold positions
amounted to $30 billion, or 1.8% of the combined market
capitalisation of those 439 companies on that date of $1.7 trillion.
Some questions arise:
• Why permit short selling at all? Short selling adds liquidity to
the market. It is arguable that it also adds significant volatility
to the market and I think most investors would regard this as
undesirable. It is particularly undesirable if the level of short
selling brings pressure to bear on company management to
take action that they otherwise believe unwarranted – eg to
sell off assets or to raise capital. It is possible that taking
that action might bring about the drop in value that the short
sellers are anticipating.
• Who is doing the short-selling/who has access to the stock
loan arrangements needed to cover short selling? There will
be well-credentialed individual and corporate traders who are
able to make the necessary arrangements to borrow stock
but I believe most of the short selling activity is by hedge
funds, reported as having assets under management of $95
billion in 2014.
• Who is lending stock to the short sellers? Given that $30
billion of stock had been lent to short sellers in July, it can
only be institutional holders. Most institutions hold shares
on behalf of unit-holders in managed funds. The shares are
therefore held in a trustee capacity and fund managers will
argue that the security provided by the hedge fund protects
against the risk of default whilst lending fees benefit unitholders. My concern is that the security being lent has been
selected as fitting the investment strategy of the fund, whilst
the act of lending it to a hedge fund will probably lead to a
reduction in price, at least in the short term.
• How does HFT activity comply with short selling rules?
Algorithms used by HFT operators are understood to scan
news feeds and other data sources for indications that a
stock may be over or under valued and to instigate sell or
buy orders to take advantage of that situation. In the case
of sell orders for stocks not held by the operator, it is obliged
to hold cover for the sale. Perhaps the HFT operator enters
into a facility with an index fund enabling the HFT operator to
borrow a limited number of every ASX200 stock to facilitate
its operations. Should short selling by HFT operators be
permitted as they don’t add significant liquidity, just a lot of
‘noise’?
• Conflict of interest within funds management activities?
Investments fluctuate in value and anticipation of a price
reduction in the short term may not invalidate holding the
investment for the longer term if it fits the strategy for a
particular fund. So it may be that, under one institutional
roof, there are fund managers short-selling a particular stock
because they anticipate a fall in price, whilst others are buying
the same stock for long term value. But how effective are the
information barriers in place to prevent misuse of information
and to manage conflicts of interest (eg with an investment
banking arm) in such circumstances? E
ASIC’s
Robo-advice: the pros and cons
of financial advice delivered online
By Miles Larbey, Senior Executive Leader for Financial Literacy at ASIC
Robo-advice, a term used to describe financial advice delivered
online, can offer convenient, and potentially lower-cost financial
advice by making use of algorithms and technology. There are
also limitations and things to bear in mind when considering using
a robo-advice service. You should make sure you understand
the limitations, are aware of the costs involved and check it suits
your needs before you sign up.
What is robo advice?
Robo-advice, also known as digital advice or automated advice,
is still developing in Australia. Generally, it refers to financial
advice that’s delivered by algorithms and technology instead of
a human financial adviser. You enter personal details, such as
age, gender, income, assets, financial goals and risk tolerance,
into a computer program and it generates financial advice, based
on the details you entered.
Robo-advisers could be startup businesses, banks offering
their customers investment advice or super funds offering their
members advice on their super. It is usually limited to one
particular area, for example investment options. If this is the
case, the advice will not consider other factors, such as debt
management, super contributions, tax planning or the effects
of an investment on Centrelink benefits.
afford full service financial advice, only have a small amount to
invest, or have simple advice needs.
Advice may be charged on a fee for service basis, and/or a
percentage fee of assets under management, if you choose to
implement the recommendations. You may also be charged
a subscription fee for ongoing services, including regular
newsletters or updates.
Robo-advice limitations
There are limitations on what digital advice software can do. For
example, a computer will not clarify your goals and objectives. It
cannot account for changes in your circumstances, if you have
a break from work, increase your debt levels or lose income due
to sickness or injury.
Digital advice questionnaires may focus on your investment
goals and risk profile but not ask about your mortgage, debts
or other investments. Robo-advisers should explain upfront if
they are only offering limited advice and should be clear about
the risks associated with the advice.
Updating your advice
A robo-adviser needs to have an Australian Financial Services
Licence or be a representative of a licensee.
It is recommended you find out if and how your advice will
be updated should your investment timeline change, your
financial goals shift or there are other changes to your personal
circumstances.
Personal advice
Portfolio rebalancing
When you register with a digital advice website, you login to
answer questions about your goals, objectives and risk tolerance.
This gives the robo-adviser information about your financial
situation and aspirations. The computer algorithm considers
this information and produces an automated statement of advice
(SOA) which explains the recommendations and other important
information for you.
If the advice you receive allows the robo-adviser to automatically
adjust the asset allocation of your portfolio, you should understand
when and why the rebalancing will occur. For example, will
rebalancing occur quarterly or as soon as your portfolio strays
more than 5 per cent from the original mix of assets? You should
also be clear about any costs or tax liabilities associated with
rebalancing your portfolio.
As your circumstances can change over time, it is advisable
you check the advice still fits your needs.
Asking questions about the advice
General advice
A robo-adviser which only gives general advice will not take
into account your personal circumstances and you will not
receive an SOA. With general advice, you will need to decide
whether the recommendation is appropriate for you, and take
into account your goals, objectives and risk tolerance, before
acting on the information.
Paying for robo-advice
Robo-advice may have lower advice fees than traditional financial
advisers. Robo-advice may be an option for people who cannot
Because there will not be a real person giving the advice you
may not have a chance to ask questions. This may make it
harder to understand the advice and decide whether it is right for
you. Financial decisions are important, if there is anything you
do not understand it is advisable to do your own research and
seek further information to help you make an informed decision.
Fees and other costs
It is important you understand the upfront and ongoing costs of
the advice and at what stage of the process you will be paying
fees. You should also check if you can withdraw from the service
or any recommended products, whether there are restrictions
on withdrawals and if there are any costs for doing so. E
01 WA Investment Concepts Seminar
Anecdotal evidence suggests that a substantial number of ASA members do not
attend meetings and discussion groups because of their perception of their low level
of understanding of share investing. A cohort of particular interest may be the partners
of active members.
The WA Committee is therefore piloting a half-day seminar to introduce new and
hesitant members to the concepts of retail share investing. To be led by experienced
ASA members as discussion leaders the seminar will include discussion on: trading vs
investing; risk vs reward; how to buy and sell; explanation of CHESS; floats; dividends
and imputation; understanding Annual Reports; information sources and more.
asa
NEWS
DESK
Strictly limited to 20, participants will be provided with a Pre-study Guide. At just
$25pp (excludes refreshments) this will sell out quickly. To register please go to the
ASA website https://www.australianshareholders.com.au/events/perth-investmentconcepts-seminar or call the office on 1300 368 448.
02 Cuffelinks
Written by financial market professionals with experience in wealth management,
superannuation, banking, academia and financial advice, Cuffelinks is an independent
financial newsletter. The team is led by finance industry veteran, Chris Cuffe. Register
and you will receive a free copy of their ebook, Cuffelinks Showcase 2015, where they
selected the best articles from hundreds published in 2015. It includes articles by many
of the biggest names in the Australian investment market. It’s free to subscribe – here
is the link http://cuffelinks.com.au/newsletter-invite.
03 Presentations
01 WA Investment
Concepts Seminar
Have you visited our presentations page https://www.australianshareholders.com.au/
presentations lately? Not only can you listen to a nine minute podcast of an interview
of Rudi Filapek-Vandyck, following his presentation at the Brisbane Investor Forum
on 13 July, but you can also access Elio D’Amato’s presentation on ‘Stocks to watch
this Annual Reporting Season’ and introductory notes to filtering fundamentals.
04 ASX CEO Sessions
ASX, along with Finance News Network, is giving investors an excellent opportunity
to hear from senior executives of ASX-listed companies. The ASX CEO Sessions are
a program of forums designed especially so investors can hear CEOs and senior
representatives of listed companies tell their investment story. Join them afterward
for an informal meet and greet, with lunch provided. Sessions are free, but you must
register. Next Sydney session is Tuesday 20 September. More information is available:
http://www.asx.com.au/seminars/ceo-sessions/
02 Cuffelinks
05 selfmanagedsuper Trustee Empowerment Day
Scheduled in Sydney on Monday, 12 September; Brisbane on Wednesday; 14
September and Melbourne on Friday, 16 September, the selfmanagedsuper Trustee
Empowerment Day will cover a number of relevant topics to equip you with current
information to assist you in better managing your retirement savings. To bring a guest
for free when you register, go to http://www.smsmagazine.com.au/event/smsf-trusteeempowerment-day and quote ASA2016. The RRP is $75pp. E
Our new office
03 Presentations
05 SMSF Trustee Trustee
Empowerment Day
PORTFOLIO CONSTRUCTION
& MANAGEMENT
ADELAIDE • PERTH • MELBOURNE • CANBERRA • BRISBANE • SYDNEY
Join Lincoln Indicators Director of Research & Education,
Elio D’Amato, for this exclusive masterclass.
PART 1 – Principles of successful portfolio
management
Learn how to implement a successful investment
strategy, including when to exit a stock, by
understanding your investment goals.
PART 2 – Building a portfolio relative to your
objectives
Learn how to construct a rock-solid portfolio
by identifying quality stocks aligned to your
investment objectives.
Don’t miss out on this unique opportunity to
spend time with a leading industry expert and
learn how to make informed and disciplined
decisions based on your investment objectives
and risk profile.
DATES
ADELAIDE
Friday 14 October 9am to 12.30pm
Hackney Hotel, 95 Hackney Road, Hackney
PERTH
Saturday 15 October 9am to 12.30pm
Metro Hotel, 61 Canning Highway, South Perth
MELBOURNE
Batman’s Hill on Collins, 623 Collins Street, Melbourne
CANBERRA
Canberra Southern Cross Club Woden,
92-96 Corinna Street, Woden
BRISBANE
Broncos Leagues Club, Fulcher Road, Red Hill
SYDNEY
SPEAKER ELIO D’AMATO,
DIRECTOR OF
RESEARCH
& EDUCATION,
LINCOLN INDICATORS
Elio D’Amato heads up Lincoln’s Stock Doctor research
team. He is also the company’s chief educator and key
media spokesman. You may recognise him from regular
segments on ABC and Sky Business television networks.
Elio is a monthly contributor to Smart Investor magazine
and regularly presents at a wide range of industry events
and investment workshops.
Harbourview Hotel, 17 Blue Street, North Sydney
EARLY BIRD PRICES
(ENDS TWO WEEKS PRIOR TO EACH EVENT)
ASA Members & partners $49 per person
Non-members$69 per person
Includes morning tea and access to online papers.
Early bird prices are available up to two weeks prior to the
event, at which time registrations will increase by $20.
To register, call 1300 368 448
or register online at www.australianshareholders.com.au/
portfolio-construction-masterclass
Spaces are strictly limited.
NSW Report
By Richard McDonald, NSW State Chairman
NSW has had good attendances at our newest discussion group
– Inner West – held at Concord. I visited last month and with 42
attendees we had a lively and interesting meeting with an excellent
presentation on Stop Losses. The group started in September 2015
and has gone from strength to strength. The group has engaged
attendees who like to continue post meeting by gathering for lunch.
Our other meeting groups are well attended. Last month there were
45 at the North Shore Group at Killara, and good attendances at
both Bondi Junction and Newcastle.
Earlier this year I visited our Taree and Port Macquarie groups. I
was joined by John Cowling who gave presentations. Our groups in
these areas are always pleased for the visits and very welcoming.
With our Wollongong Convenor stepping down, Silvana Eccles
and I met with members of this group in August and can happily
report that from October this discussion group will continue to
meet on a weekday morning at the same venue. Once confirmed
details will be advised to members..
Our regional areas are important to us, and in July John Cowling,
Doug Gannon and I braved the cold and travelled to Orange and
Dubbo to meet with local ASA members with a view to setting
up investor meeting groups in both places. We initially emailed
61 members in these local areas and were very pleased to meet
with a very engaged group of members.
Following the success of Victoria’s investor coffee mornings, we
are hoping to set up a group in Bathurst, along with discussion
groups in Dubbo and Orange. The Orange Group had their inaugural
meeting, a coffee meeting, on Tuesday 9 August at the Orange
Ex-Servicemen’s Club.
Other areas we hope to expand to include the Blue Mountains, the
Sutherland Shire and the Northern Beaches. If you are interested
in helping set up a group in your local area, please contact me at
[email protected]. Coffee mornings are a great and easy way for
groups to get started, as it can be a smaller number of members
who meet informally in a local café to discuss investing and
matters financial. Investors learning from each other and sharing
information – the bedrock of the ASA.
We were pleased with the success of our excellent conference
this year. Feedback was very positive and we attracted some
new members. In fact, due to an EOFY offer to subscribers, June
membership lists for NSW show a pleasing increase. Please
tell your friends and spread the word that ASA is a worthwhile
membership.
The Sydney Christmas Lunch will be held on Friday 2 December
at the Kirribilli Hotel, so please hold this date. Guest speaker will
be Stephen Mayne – “A year in business – Heroes and villains.”
Following the success of the Intergenerational Wealth Planning
seminars and with possible recent changes to the superannuation
laws, we will be planning an educational day on these important
subjects. Watch this space. E
Looking for global growth opportunities to diversify your
investment portfolio – but feeling cautious about global markets?
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(ASX: HHV)
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1 year – 20.0%
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For 12 years HHV has provided easy access to a diversified
ethically screened portfolio of global equities via the ASX.
To find out more, please contact 1800 651 674
or visit www.hunterhallglobalvalue.com.au
Ethical
Managed Funds
Hunter Hall Global Value Limited does not guarantee the repayment of capital or any particular rate of return on investment. Past performance is no guarantee of future performance. This document does not take into account a reader’s investment objectives, particular needs or financial situation.
It is general information only, should not be considered investment advice and should not be relied on as an investment recommendation.
LOCATION
DATE
TIME
VENUE
SPEAKER
TOPIC
Weston
06-Sep-16
12.30pm
Weston Club, 1 Liardet St, Weston
Southside Discussion Group
General
investment topics
Macquarie
08-Sep-16
12.30pm
Canberra Southern Cross Club Jamison,
Cnr Catchpole & Bowman St, Macquarie
Northside Discussion Group
General
investment topics
Weston
04-Oct-16
12.30pm
Weston Club, 1 Liardet St, Weston
Southside Discussion Group
General
investment topics
Canberra
22-Oct-16
9am12.30pm
Canberra Southern Cross Club Woden,
92-96 Corinna St, Woden
Elio D'Amato, Lincoln Indicators Portfolio construction
& management
Bondi Junction
06-Sep-16
10.30am
Mill Hill Community Centre,
31-33 Spring St, Bondi Junction
Discussion Group
Investment topics
Inner West
13-Sep-16
10.00am
Concord Library, Function Room,
60 Flavelle St, Concord
Discussion Group
General
investment topics
Wollongong
13-Sep-16
6.00pm
The Builders, 'Sonata Lounge',
61 Church St, Wollongong
John Cowling, ASA
Top stocks
Sydney
Investor Forum
15-Sep-16
12.00
noon
Sydney Mechanics' School of Arts,
Mitchell Theatre, 280 Pitt St, Sydney
Paul Bloxham, HSBC Australia
Brexit and beyond for
Australian investors
Sydney
- North Shore
16-Sep-16
10.00am
Killara Uniting Church Hall,
9 Karranga Ave, Killara
Discussion Group
General investment
related topics
Taree
22-Sep-16
10.00am
Greater Taree City Library,
242 Victoria St, Taree
Discussion Group
General
investment topics
Newcastle
26-Sep-16
11.00am
Club Macquarie,
458 Lake Rd, Argenton
Russell Markham,VectorVest
Minimising risk &
maximising returns in
the share market
Bondi Junction
04-Oct-16
10.30am
Mill Hill Community Centre,
31-33 Spring St, Bondi Junction
Discussion Group
Investment topics
Port Macquarie
07-Oct-16
10.00am
Senior Citizens Centre,
Munster St, Port Macquarie
Discussion Group
General
investment topics
Inner West
11-Oct-16
10.00am
Concord Library, Function Room,
60 Flavelle St, Concord
Discussion Group
General
investment topics
Sydney
29-Oct-16
9am12.30pm
Harbourview Hotel,
17 Blue St, North Sydney
& management
Brisbane
02-Sep-16
9am4.30pm
Wesley House, 140 Ann St, Brisbane
One Day Seminar
Investors Big Day Out
Brisbane
03-Sep-16
9am4.30pm
Broncos Leagues Club, Fulcher Rd, Red Hill
Bill Dodd, ASA
Outperforming the Index
Gold Coast
13-Sep-16
9.30am
Robina Community Centre,
cnr San Antonio Court, Robina
Rob Markham, VectorVest
Minimising risk &
the share market
Brisbane
Investor Forum
14-Sep-16
11.00am
Wesley House, 140 Ann St, Brisbane
Rob Markham, VectorVest
Minimising risk &
the share market
Toowoomba
19-Sep-16
1.30pm
University Open Learning Centre,
27 Jellico Street, Toowoomba
Guest speaker
Investment topics
Gold Coast
11-Oct-16
9.30am
Robina Community Centre,
cnr San Antonio Court, Robina
Guest speaker
Investment topics
Brisbane
28-Oct-16
9am12.30pm
Broncos Leagues Club, Fulcher Rd, Red Hill
& management
Adelaide
07-Sep-16
10.30am
University of Adelaide Club, L 4, Union
House, WP Rodgers Room, Adelaide
Led by Keith Potts, ASA
Resource related topics
Adelaide
14-Sep-16
10.30am
Led by Genevieve Ward, ASA
Industrial shares
Adelaide
21-Sep-16
11.30am
Scots Church Hall,
Cnr Pulteney St & North Tce, Adelaide
General meeting
General
investment topics
Adelaide
Investor Forum
21-Sep-16
12.00
noon
Scots Church Hall,
Cnr Pulteney St & North Tce, Adelaide
Russell Markham, VectorVest
Minimising risk &
the share market
Adelaide
05-Oct-16
10.30am
Led by Keith Potts, ASA
Resource related topics
Adelaide
14-Oct-16
9am12.30pm
Hackney Hotel, 95 Hackney Rd, Hackney
& management
ACT
NSW
QLD
SA
LOCATION
DATE
TIME
VENUE
SPEAKER
TOPIC
Campaspe
07-Sep-16
10.00am
Caledonian Hotel, 110 Hare Street, Echuca
Discussion Group
Investment related topics
Melbourne
Investor Forum
07-Sep-16
12.00
noon
Telstra Conference Centre,
1/242 Exhibition St, Melbourne
Duncan Fairweather,
SMSF Owners Alliance
SMSFs in the firing line
Kingston
08-Sep-16
10.30am
Longbeach Place,
15 Chelsea Road, Chelsea
Discussion Group
Investing in gold
Manningham
13-Sep-16
10.00am
Koonarra Hall,
7 Balwyn Rd (cnr Furneaux Grove), Bulleen
Bill Grint, ASA
IT companies
Geelong
13-Sep-16
12.00
noon
White Eagle House,
46 Felmongers Rd, Breakwater
Day Discussion Group
General investing and
SMSF management
matters
Ballarat
14-Sep-16
7.30pm
McCallum Conference Centre,
Leopold St, Alfredton
Discussion Group
Mornington
15-Sep-16
9.45am
Mornington Golf Club, Tallis Dr, Mornington
Roundtable discussion
led by Ian Thomson, ASA
General
investment topics
Melbourne
Evening Meeting
15-Sep-16
6.00pm
Limerick Arms Hotel,
364 Clarendon St, Sth Melbourne
Duncan Seddon, ASA
Looking at lithium
and graphene
Monash
20-Sep-16
10.00am
Wheelers Hill Public Library,
860 Ferntree Gully Rd, Wheelers Hill
Sue Dudley, ASA
Deciding "when to sell"
may be more important
than deciding "what and
when to buy"
Bendigo
21-Sep-16
10.00am
Bendigo Club, 22 Park St, Bendigo
Guest speaker
Investment topics
Albury-Wodonga
27-Sep-16
10.00am
Commercial Club, 618 Dean St, Albury
Guest speaker
The company
reporting season
Gippsland
28-Sep-16
10.00am
32 Kassandra Dr, Traralgon
Discussion Group
Investment topics
Campaspe
05-Oct-16
10.00am
Caledonian Hotel, 110 Hare Street, Echuca
Discussion Group
Melbourne
Investor Forum
05-Oct-16
12.00
noon
Telstra Conference Centre,
1/242 Exhibition St, Melbourne
Alan Oster, NAB
Economic update
Manningham
11-Oct-16
10.00am
Koonarra Hall,
7 Balwyn Rd (cnr Furneaux Grove), Bulleen
John Parrott, ASA
AGMs and the
reporting season
Geelong
12-Oct-16
6.00pm
Waurn Ponds Hotel,
Princes Hwy, Waurn Ponds
Remo Greco,
Sanlam Private Wealth
Financial markets give
me a headache!
Ballarat
12-Oct-16
7.30pm
McCallum Conference Centre,
Leopold St, Alfredton
John Cowling, ASA
TBA
Melbourne
21-Oct-16
9am12.30pm
Batmans Hill on Collins,
623 Collins St, Melbourne
& management
Perth Members
Monthly Meeting
06-Sep-16
10.15am
State Library Bldg of WA,
25 Francis St, Perth
Guest speaker
Investment topics
Perth
Investor Forum
06-Sep-16
12.00
noon
Colin Nicholson, investor,
writer, commentator
Strategic investing
through the cycles
Perth
13-Sep-16
9am12.30pm
Central Park Conference Centre, Seminar
Room, 152-158 St Georges Tce, Perth
ASA members
Investment
concepts seminar
Perth
Investors' Corner
15-Sep-16
10.00am
Citiplace Community Centre,
City Station Complex, Wellington St, Perth
Discussion group
led by Lorraine Graham
& Peter Scales, ASA
Equity investments
including yield stocks,
LICs & selected shares
Perth South of
the River Group
23-Sep-16
10.00am
Canning River Eco Education Centre,
'Melaleuca Room', Lot 8 Queens Park Rd,
Wilson
Discussion group
Investment topics
Busselton
28-Sep-16
9.30am
Busselton Volunteer Marine Rescue
Group HQ, Geographe Bay East, Busselton
Discussion group
led by members
Perth Members
Monthly Meeting
04-Oct-16
10.15am
Guest speaker
Investment topics
Perth Investor
Forum
04-Oct-16
12.00
noon
Robin Bowerman, Vanguard
TBA
Perth
15-Oct-16
9am12.30pm
Metro Hotel,
61 Canning Highway, South Perth
Elio D'Amato, Lincoln Indicators Portfolio construction &
management
VIC
WA
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September 2016 ASA Equity Magazine

Transcription

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