The MSCI World Index (ex-Aust) in local currency returned 3.40%
over the six months ending 31 December 2014.
MSCI World (ex-Aust) Index
Despite a deterioration in the global growth outlook, US
equities reached new highs in December as third quarter economic
growth was subject to a sharp upward revision. Notwithstanding,
company valuations remain stretched despite the positive
fundamentals. The end of Quantitative Easing together with the
prospect of rising interest rates is likely to limit any
European equities are also unattractive. Valuation metrics do
not reflect the very poor economic fundamentals. Valuations in
China appear cheaper, but downside risks to earnings remain
Consensus earnings growth expectations for the top 500 US
companies (S&P 500) now approximate 8.8% for CY14 and 12.3% for
CY15. Our fair value estimate for the S&P 500 for CY14 is 1751
and 1967 for CY15. As at 31 December, the S&P 500 index is
trading at 2059 points.
Over the last 18 months, Australian investors in global equities
have benefitted from rising corporate profitability and the falling
Australian dollar. Although we expect the Australian dollar will
continue to fall over the coming 12 months, global equities no
longer offer compelling value. Indeed, should growth in the United
States disappoint, then a sharp equity market correction would be
likely. Thankfully, this is not our base case expectation but in
the absence of value, we recommend investors maintain a modest
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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