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Monthly Newsletter June 2018

  • In June, the Fund gained +1.4% which makes for an 8% return for the quarter. This is ahead of expectations given the Fund’s lower risk portfolio and high cash weight.
  • After having a weak start to 2018 due to concerns about rapidly rising interest rates and the impact of Amazon, the listed property sector continued to rebound in June due to increased corporate activity in the sector. Additionally, domestic retailers should see a benefit from 1 July 2018 onwards as GST will now be applied to all imported goods.
  • The Fund has increased its distribution for the June quarter and has been active in reducing risk over the last month.

 

Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2018.

AFR:Commonwealth Bank’s CFS planning, broking arms ‘basically up for sale’

Commonwealth Bank investors have questioned the pairing of high-value funds management operations with risky advice and mortgage broking units, but have more broadly welcomed the split of $8 billion worth of wealth businesses into a separate company.

Hugh Dive, founder and chief investment officer of Atlas Funds Management, said he “wouldn’t be surprised” to see CFS Group spin off the financial planning and mortgage broking units before the demerger.

“Whilst Colonial, the funds management business and the platforms, are very good, people will discount the value of the financial planning business,” he said.

“Financial planning is not a great business to be in. Your assets walk out the door every day … the clients have a great relationship with the planner, not with the funds management house.”

Mr Dive, however, said the chances of capital return as a result of an IPO “struck me as a very low probability outcome”.

“That was a supposed disappointment, but we didn’t factor that [capital relief] as a factor at all,” he said.

Commonwealth Bank’s CFS planning, broking arms ‘basically up for sale’

Commonwealth Bank investors have questioned the pairing of high-value funds management operations with risky advice and mortgage broking units, but have more broadly welcomed the split of $8 billion worth of wealth businesses into a separate company.