The ASX 200 Accumulation Index returned 2.50% over the six
months ending 31 December 2014
ASX 200 Accumulation Index
The outlook for the Australian sharemarket is subdued. From a
valuation perspective, the ASX 200 is currently trading close to
the long term average (as a multiple of earnings). With the market
trading around fair value, an improvement in earnings is required
to lift the market higher. Given the current economic conditions,
any improvement is likely to be modest and uneven.
Although commodity prices have fallen sharply, we expect the
downturn in China to continue, forcing many analysts to further
revise profit expectations for the resources sector. Although share
prices have already fallen sharply, further falls are likely.
Interest rates and oil prices however are likely to stay lower
for longer. This should benefit the sharemarket in a number of
Borrowing costs should stay low, reducing costs for
Costs of transportation should fall.
Household incomes may improve, which could support retail
Defer the looming risks in the banking sector that are rising
from the sharp increase in new loans to residential property
Force many income dependent investors to seek riskier assets in
an attempt to generate more income, including higher yielding
Although valuations are not compelling, we expect demand for
equities to remain supported by the low interest rate environment.
We recommend investors marginally increase exposure from slight
underweight to neutral.
An actuarial review of the Invensys Australia Superannuation Fund showed it to be in surplus to the tune of $189.2 million. In mid 2003, the Invensys Group proposed to the trustee that the surplus be repatriated to the principal employer in the group.
Lenders in New South Wales breathed a sigh of relief earlier this month when the Supreme Court ruled in Bank of Western Australia Ltd v. Primanzon  NSWSC 862 that two part-time commercial property investors could not claim relief under the Contracts Review Act 1980 (NSW) because the loans advanced to them were entered into in the course of a trade, business or profession carried on by them.
A key aspect of an innovation culture is keeping it active at all levels of management, from teams to board meetings.
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