Investment Theme
Nikko Asset Management Australia

History is replete with examples of businesses and consumers ignoring or dismissing big ideas, particularly those associated with disruptive innovation. In 1876, for example, when Alexander Graham Bell was granted the official patent for the telephone, many businesses dismissed it as irrelevant or insignificant. Famously, Western Union took a pass... Show More

Equities
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Companies that will attain, and then sustain, very high returns on capital, have the ‘future quality’ that Will Low, Head of Global equities at Nikko Asset Management looks for. Here he discusses two highly successful Australian growth stocks, and a global stock that is a household name, through this lens. He... Show More

Nikko Asset Management Australia

While the market is concerned with the housing cycle and the prospective entry of Amazon, we think that both of these concerns are overblown. In addition, Harvey Norman (HVN) also suffered from allegations of inappropriate accounting practices implying that reported earnings were questionable and became a target for shorting by... Show More

Collections
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With markets currently nervous and also expensive, we reached out to a panel of fund managers to ask: “What strategies or techniques allow you to remain invested even if valuations appear stretched?” Read below for individual responses from Nikko AM, Schroders, Monash Investors, and an exclusive interview with Giselle Roux,... Show More

Nikko Asset Management Australia

We often read that Abenomics continues to divide people as to whether it is working, and if this policy platform advocated strongly by Prime Minister Abe since his election in 2012 will ever achieve its objective of moving Japan’s economy forward. We believe that Abenomics is working, however we feel... Show More

Nikko Asset Management Australia

The outlook for US construction looks positive, with housing continuing to move back towards mid-cycle levels, and commercial activity potentially increasing as business sentiment improves. There also appears to be a greater degree of certainty around infrastructure investment than there has been for some time. With finance headwinds having long... Show More

Nikko Asset Management Australia

As commodity prices have risen, the Australian economy is set to benefit from these continuing gains. Australia’s improving terms of trade has led to a big increase in nominal GDP, which is now growing at 6.1% year-on-year. As commodity prices have moved higher in the first half of 2017, this... Show More

Nikko Asset Management Australia

This year’s reporting season was brutal, with many market darlings confessing to their sins. Some 45% of ASX 200 companies beat their EPS estimates, while 33% missed, the highest since the GFC. The Australian market has seen quite a large rotation away from defensive and bond-sensitive stocks, towards the cyclical... Show More

Nikko Asset Management Australia

In this report, William Low, Nikko’s Head of Global Equities, asks three key questions: 1) With global equities almost back to new highs, should we treat this as a sign of optimism, or a cause for concern in 2017; 2) Value investing appears to be back in fashion - How... Show More

Nikko Asset Management Australia

LendLease’s net profit rose 12% for the half year ending 31 December 2016, underpinned by earnings growth in all its major operating segments. The development segment was driven by Australia while the construction segment was supported by improved performance in the Americas. The interim distribution announced was AUD 0.33 per... Show More

Nikko Asset Management Australia

BlueScope Steel’s first-half earning was marginally ahead of its latest guidance, surging almost 80% compared to the prior corresponding period. The company increased its dividend, a fully franked AUD 0.04 per share, and announced an AUD 150 million share buyback. The company achieved earnings growth across all its operating regions,... Show More

Nikko Asset Management Australia

Boral Limited’s half-year result to 31 December 2016 saw profits improve 12% on the back of improved earnings in its US and Asian divisions. Earnings growth was driven by the continued improvements in the US (due to housing) and the USG Boral division, a joint venture (JV) with USG Corp. Show More

Nikko Asset Management Australia

The defensive bull-market that saw the safe companies, and secular growth stocks, rally to unsustainable highs ended in August 2016. This rally appeared to be unprecedented in both magnitude and duration. Multiples of these stocks have compressed significantly since then, as rising interest rates and global growth outlook burst the... Show More

Hi Bart, thank you for your comment and for listening to ARK's latest podcast with Elon Musk. Tesla remains one of their highest conviction stocks. ARK utilises an iterative top-down and bottom-up investment process that results in theme-based portfolios consisting of high conviction securities. During risk-off or high volatility periods, ARK opportunistically consolidates into its highest conviction securities (buy into price weakness) as opposed to some managers who off-load risk by diversifying their portfolios during these periods. If these securities subsequently appreciate in value and their position sizes increase above a specified percentage of a portfolio, they are trimmed to ensure compliance with client investment guidelines as part of the portfolio management process.

On In the driver's seat with Elon Musk -