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Goldman Sachs Australian Equities Quarterly Investment Option Update 30-September-2015 Availability Product name APIR AMP Flexible Super Choice (Retirement) AMP1341AU AMP Flexible Super Choice (Super) AMP1470AU CustomSuper AMP0766AU Flexible Lifetime Allocated Pension AMP0625AU Flexible Lifetime Super AMP0766AU Flexible Lifetime Term Pension AMP0918AU SignatureSuper AMP0791AU SignatureSuper Allocated Pension AMP1145AU Flexible Lifetime Investment AMP0833AU Flexible Lifetime Investment (Series 2) AMP1406AU MultiFund Flexible Income Plan AMP0763AU Investment Option Performance Investment performances are subject to product fees and where relevant tax as outlined in the product PDS. Therefore investment performance may differ between products. In addition, activity on your account such as contributions and deductions will also impact the investment performance specific to you. To view the latest investment performances for each product, please visit www.amp.com.au. You can also view the last investment performance specific to you by visiting your My Portfolio account. Contact Us Web: www.amp.com.au Email: [email protected] Phone: 133 267 (Mon. to Fri. 8:00am to 8:00pm AEST) Overview Aim & Strategy: To achieve medium-to-long term capital growth through exposure to companies listed on the Australian Securities Exchange. In doing so, the aim is to outperform the S&P/ASX 200 Accumulation Index over rolling three-year periods. Investment category: Australian shares core Suggested Investment Timeframe: 5 7 years Standard Risk Measure: 6/ High Asset Allocation Benchmark (%) Range (%) Australian Equities S&P/ASX 200 100%

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Goldman Sachs Australian

Equities Quarterly Investment Option Update

30-September-2015

Availability

Product name APIR

AMP Flexible Super – Choice (Retirement) AMP1341AU

AMP Flexible Super – Choice (Super) AMP1470AU

CustomSuper AMP0766AU

Flexible Lifetime – Allocated Pension AMP0625AU

Flexible Lifetime – Super AMP0766AU

Flexible Lifetime – Term Pension AMP0918AU

SignatureSuper AMP0791AU

SignatureSuper Allocated Pension AMP1145AU

Flexible Lifetime Investment AMP0833AU

Flexible Lifetime Investment (Series 2) AMP1406AU

MultiFund Flexible Income Plan AMP0763AU

Investment Option Performance

Investment performances are subject to product fees and

where relevant tax as outlined in the product PDS. Therefore

investment performance may differ between products. In

addition, activity on your account such as contributions and

deductions will also impact the investment performance

specific to you. To view the latest investment performances

for each product, please visit www.amp.com.au. You can

also view the last investment performance specific to you by

visiting your My Portfolio account.

Contact Us

Web: www.amp.com.au

Email: [email protected]

Phone: 133 267 (Mon. to Fri. 8:00am to 8:00pm AEST)

Overview

Aim & Strategy: To achieve medium-to-long term capital

growth through exposure to companies listed on the

Australian Securities Exchange. In doing so, the aim is

to outperform the S&P/ASX 200 Accumulation Index

over rolling three-year periods.

Investment category: Australian shares – core

Suggested Investment Timeframe: 5 – 7 years

Standard Risk Measure: 6/ High

Asset Allocation Benchmark (%) Range (%)

Australian Equities S&P/ASX 200 100%

Holdings

Industry Exposure %

Information Technology 6.16

Consumer Discretionary 9.72

Energy 8.99

Industrials 10.01

Financials ex Property Trusts 40.87

Health Care 5.52

Utilities 0.00

Regional Exposure %

Top Ten Securities %

Commonwealth Bank of Australia 12.47

Westpac Banking 11.01

ANZ Banking 10.20

Caltex Australia 5.07

Macquarie 3.89

Computershare 3.39

Crown Resorts 3.22

Seek 3.03

Carsales.Com 2.77

Echo Entertainment 2.72

Market Commentary

The Australian share market fell heavily in the first quarter of FY2016, with earnings reports unable to cushion stock prices in the face of macroeconomic fears. The S&P/ASX 200 Accumulation Index fell 6.6% last quarter, reducingits total return for the 12 months to September 30 to -0.1%. The returns, however, were better than in international markets: the MSCI World Index shed 8.9% and 9.5% over the same respective periods. Despite a mixed reporting season in which strength in industrials offset weakness in the banking and mining sectors, local shares were sold off almost indiscriminately in 1QFY2016 as concerns about global growth pervaded the market. Volatility spiked during the quarter, with the VIX ‘fear index’ rising to its highest level since late 2011 during the European sovereign debt crisis.This time the cause of the market’s anxiety was the stumbling Chinese economy, widespread commodity price declines and the US Federal Reserve drawing closer to hiking interest rates.

Fresh data measuring the Australian economy, which revealed GDP growth for the June quarter was marginally positive, added to the jitters. Defensive equities appeared the most resilient amid the decline, with Utilities, Industrials and Consumer Staples displaying the best performance at 2.4%, 3.4% and 1.5% respectively. Sectors that tracked in the black were outweighed by those that dipped into the red. Energy lost 24.1% in the period, followed by Materials at 10.9% and Financials ex-Property at 9.6%.

Investment Option Commentary

Top 5 Contributors

Treasury Wine Estates (TWE, overweight) – the wine-

making and distribution business outperformed during the quarter after reporting a stronger-than-expected FY2015 result, with net profit after tax (NPAT) lifting 26.3% as sales into Asia beat forecasts. We continue to hold a positive view based on several factors: an improving wine cycle (approaching balance), the ability to further expand in the premium wine market (supported by the brand portfolio and accumulated inventory), hidden value in the commercial wine assets (underlying asset values are not reflected by current earnings) and the potential to take advantage of its balance sheet strength. Further, the company has significant leverage to any deprecation of the Australian dollar, both from a transactional and translational perspective. Sydney Airport (SYD, overweight) – the Sydney airport

owner and operator’s outperformance in the quarter stemmed from several factors. Traffic continues to grow at a solid pace: passenger growth lifted by 2.5% for the first seven months of calendar 2015, comprising a 2% increase in domestic passengers and a 3.3% lift in the more profitable international component. The half-year result in Augustrevealed earnings before interest, tax, depreciation and amortization (EBITDA) rose 6.4%, a strong result that owed partly to further improvement in margins. And the company announced a deal with Qantas to buy the airline’s domestic terminal (T3) lease under a new10-year deal, enabling it to better integrate the terminal into the airport. Echo Entertainment Group (EGP, overweight) – the casino

operator outperformed in the September quarter due to a better-thanexpected full-year result in which underlying net profit after tax (NPAT) lifted 52% to $219 mn. We continue to hold an overweight position because we believe EGP has an attractive earnings outlook as their casino assets are turned around through operational improvements and capital expenditure (capex), with additional upside from the corporate appeal of the assets. Veda (VED, overweight) – the stock lifted in the quarter after

US-based Equifax launched a takeover bid for the credit reporting agency. The conditional, all cash proposal valued VED at $2.28 bn, or $2.70 per share – a premium to the group’s share price prior to the offer. BHP Billiton (BHP, underweight) – our underweight position

in BHP contributed positively to the portfolio’s performance during the quarter with the company’s shares hitting a seven-year low. BHP’s key commodity exposures – iron ore, oil, copper and coal – continued to face headwinds amid a widespread decline in commodities during the period. The

stock remains a key underweight in the portfolio, driven by our cautious outlook for commodity prices which

Outlook

The Australian share market’s decline in the first quarter of FY2016 has unlocked more value, though isolating the best opportunities in a volatile environment requires close consideration at a stock-specific level. It’s essential to separate the vagaries of sentiment from fundamentals which reveal a reasonably stable earnings profile for corporate Australia. Company balance sheets are generally sound and stimulatory forces (lower interest rates and a weakening local currency) should assist in offsetting softer revenue growth. Though Australian equities are priced in line with long-term averages based on forward earnings estimates, their valuations are supportive relative to alternatives, like bonds, given they offer around 5% dividend yields on average. Nevertheless, we expect the Australian economy to remain subdued and therefore focus our portfolio around companies that can prosper in this environment.

What you need to know

This publication has been prepared by AMP Life Limited ABN 84 079 300 379, AFSL No. 233671 (AMP Life). The information contained in this publication has been derived from sources believe to accurate and reliable as at the date of this document. Information provided in this investment option update are views of the underlying Investment Manager only and not necessarily the views of the AMP Group. No representation is given in relation to the accuracy or completeness of any statement contained in it. Whilst care has been taken in the preparation of this publication, to the extent permitted by law, no liability is accepted for any loss or damage as a result of reliance on this information. AMP Life is part of the AMP Group. In providing the general advice, AMP Life and AMP Group receives fees and charges and their employees and directors receive salaries, bonuses and other benefits.

The information in this document is of a general nature only and does not take into account your financial situation, objectives and needs. Before you make any investment decision based on the information contained in this document you should consider how it applies to your personal objectives, financial situation and needs, or speak to a financial planner.

The investment option referred to in this publication is available through products issued by AMP Superannuation Limited ABN 31 008 414 104, AFSL No. 233060 (ASL) and/or AMP Life. Before deciding to invest or make a decision about the investment options, you should read the current Product Disclosure Statement for the relevant product, available from ASL, AMP Life or your financial planner.

Any references to the “Fund”, strategies, asset allocations or exposures are references to the underlying managed fund that the investment option either directly or indirectly invests in (underlying fund). The investment option’s aim and strategy mirrors the objective and investment approach of the underlying fund. An investment in the investment option is not a direct investment in the underlying fund.

Neither AMP Life, ASL, any other company in the AMP Group nor underlying

fund manager guarantees the repayment of capital or the performance of any

product or particular rate of return referred to in this document. Past

performance is not a reliable indicator of future performance.

Additional Disclaimers

This information is confidential information and shall be treated by you as such, and must be treated by you with the same degree of care in handling it and protecting its confidentiality as you use with regard to your own proprietary information. No part of this material may be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient, without GSAMA's prior written consent. No part of this information shall be used by you or your agents as a basis for effecting or replicating transactions, and it must not be used for any purpose other than for your analysis of the performance of GSAMA and the Fund(s). By obtaining and using this information, the recipient agrees that it will indemnify GSAMA for any unauthorised use or distribution of all or any part of this information on a full indemnity basis for direct and indirect losses to GSAMA. This document has been prepared by GSAMF and Goldman Sachs Asset Management Australia Pty Ltd ABN 41 006 099 681 AFSL 228 948. This document is not a product of the Goldman Sachs Global Investment Research Department. The views and opinions expressed herein may differ from the views and opinions expressed by the Goldman Sachs Global Investment Research Department or other departments or divisions of Goldman Sachs Australia. This material is distributed by Goldman Sachs Asset Management Australia Pty Ltd ABN 41 006 099 681, AFSL 228948 ('GSAMA') and is intended for viewing only by wholesale clients for the purposes of section 761G of the Corporations Act 2001 (Cth). This document may not be distributed to retail clients in Australia (as that term is defined in the Corporations Act 2001 (Cth)) or to the general public. This document may not be reproduced or distributed to any person without the prior consent of GSAMA. This information discusses general market activity, industry or sector trends, or other broad based economic, market or political conditions and should not be construed as research or investment advice. The material provided herein is for informational purposes only. This presentation does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. This material is provided at your request solely for your use. Confidentiality No part of this material may, without GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient. © 2015 Goldman Sachs. All rights reserved. 19816-OTU-99944.