Author: Hugh Dive • Page 53 • Atlas Funds Management

SMH: CBA puts wealth, mortgage broking spin-off on backburner

CBA puts wealth, mortgage broking spin-off on backburner
CBA says it has suspended preparations for the demerger of its wealth management and mortgage broking businesses in order to focus on implementing the recommendations of the royal commission.

February Monthly Newsletter Atlas High Income Property Fund

The S&P/ASX 200 A-REIT index had a solid month in February returning +1.8%, though this number does not reveal the dispersion of returns among the Listed Property Trusts, with the developers dragging up the overall index’s return.
The Atlas High Income Property Fund fell -2% in February, reflecting our conservative positioning towards higher yielding rent collectors with recurring income and away from Trusts relying on development profits.
Historically, the Trusts with development earnings both see earnings growth and a multiple expansion towards the end of a property boom. As developers such as Goodman are trading on close to 25 times forward earnings, the market is effectively assuming that this source of profits will both grow and continue indefinitely. We are encouraged that the Fund is utilising the right strategy after seeing articles praising aggressive approaches to property management such as “Listed real estate is no longer boring”. We saw similar articles in 2006 and 2007, praising Goodman and Centro and their new age approach to property.

Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2019.

QBE up 4% as housekeeping shows through

February 2019 Reporting Season – Halfway Point

February 2019 Reporting Season – Halfway Point with Hugh Dive from Atlas Funds Management
During the months of February and August every year, the majority of Australian listed companies reveal their profit results and most provide guidance as to how they expect their businesses to perform in the upcoming year. Hugh Dive, Chief Investment Officer at Atlas Funds Management reviews the best and worst reports so far in the February 2019 reporting season.

Whilst fund managers regularly meet with companies between reporting periods to gauge how their businesses are performing, during reporting season companies open up their books to allow investors a detailed look at the company’s financials. As company management have been on “black out” (prevented from speaking with investors) since late November, share prices over the last two months have been influenced by rumours and theories, rather than actual financials. Here we look at reporting season at the halfway mark

A dividend cut is ‘very much on the cards’ for NAB

A dividend cut is ‘very much on the cards’ for NAB: Investor
Hugh Dive of Atlas Funds Management says a dividend cut from the National Australia Bank could come as a “big shock” for its “yield-hungry” investors.