Some of the industry’s leading fund managers took to the stage today as part of Future Generation’s Investment Forum, with each manager sharing their top stock idea for the year ahead. If you were unable to tune in, you can watch this valuable series of snappy presentations here, alternatively, I... Show More
Livewire readers submitted ~2500 stock tips in a survey we ran at the start of the year. We published the ’10 most tipped stocks’ and ’10 more of the most tipped’ off the back of the results. However, in this wire, we put our contrarian heads on and ask: ‘Which... Show More
The hail storm that hit Sydney late last year made a lot of headlines, but has not changed our fundamental view that insurance is an attractive sector in the current environment. Losses from weather events are part and parcel of running an insurance business. While they introduce profit volatility and... Show More
One of the most engaging parts of my role at Livewire is working with Australian fund managers to discuss their views and bring you great content. With over 400 managers now contributing to the platform, overseeing the content can feel like being at the epicentre of the market. So with... Show More
Nufarm is an Australian company that specialises in chemical crop protection globally. It produces products to help farmers protect their crops against damage caused by weeds, pests and disease. There are two key reasons we believe Nufarm is one of the most compelling opportunities in the Australian equity market today: Industry consolidation Omega... Show More
Last week, I presented a stock idea at the Future Generation Investment Forum. Despite being the biggest beneficiary of the oil and gas industry investing to maintain its wells, this company trades on just a PE of 12x. Here, I outline why WorleyParsons could be set to soar as the... Show More
On Thursday, we heard from some of the market’s top fund managers at the Future Generation Investment Forum, with each offering their best stock idea. If you missed it, we have summarised the key points from each presentation below and included a link to the recording. Read on for insights... Show More
Thanks Mr T. Insurance is an inherently volatile business with reasonably opaque disclosures. However, these characteristics are already reflected in the valuations of stocks like IAG and SUN, which is one of the reasons why they don’t trade at similar multiples to other oligopolistic industries like supermarkets. Our current view is that when comparing the insurance sector to the ASX200, we believe it is in a relatively more attractive position than it has been historically given a stronger revenue and earnings growth outlook than many other sectors in the market. It is true that we will see some mark-to-market investment losses on the equity and corporate bond portfolios of IAG and SUN at the upcoming results. However the ongoing profitability of the insurance business is to a large extent protected by the fact that both insurers match the duration of their bond portfolios to the duration of their claims liabilities, so that interest rate movements have similar impacts on both sides of the balance sheet. Management disclosures on investment portfolios have also improved markedly over the past decade so we at least have some information on the split of investments across asset classes and credit rating bands.