Category: Interviews

AFR Article: What to look for when buying property trusts

by Mark Draper

Property trusts have been touted as a potential beneficiary from the Labor proposal to deny refunds from franking credits due to  their relatively high level of unfranked income.

Professional property investors Hugh Dive, portfolio manager at Atlas Funds Management, and Adrian Harrington, head of funds management at Folkestone,  offer some tips about what to look for when buying property trusts – whether listed or unlisted. Underlying these, of course, is the need to buy at a reasonable price. For the full article click on the below link.

What to look for when buying property trusts

From recurring earnings to debt structure, the experts outline what should be on your checklist before you buy.

 

Wesfarmers’ plan to demerge its supermarket business Coles has been good for Investors

Hugh Dive of Atlas Funds Management says the proposal will likely to improve the “overall return on capital” for the Australian conglomerate.

Wesfarmers’ plan to demerge its supermarket business Coles is a ‘good move’: investor

Hugh Dive of Atlas Funds Management says the proposal will likely to improve the “overall return on capital” for the Australian conglomerate.

 

 

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.

Cuffelinks 250th Edition: Mistakes that made us better investors

Regrets, I’ve had a few, But then again, Too few to mention,
I did what I had to do, And saw it through without exemption,
I planned each charted course, Each careful step along the byway,
And more, much more than this, I did it my way.”

My Way, made famous by Frank Sinatra. © WARNER CHAPPELL MUSIC
Every investor makes mistakes, but we see that it is how you treat these errors and learn from them determines whether you improve as an investor. In my experience, painful mistakes offer more lessons about picking stocks and constructing portfolios in the future, than investing in stocks that went up several hundred percent. Indeed when professional fund managers get together, the talk is rarely about successful investments, but rather situations where we misread the outlook or did not pick up the clues that company management were not telling the truth.

Earlier this week Cuffelinks published a Special 250th Edition that included over 30 market experts sharing a mistake that made them better investors. Atlas were invited to contribute to this publication and shared a mistake made close to a decade ago that continues to shape our investment process. Click on the below link to launch the article

Learning from mistakes