This Year’s Harvest: Reviewing the performance of one of our most popular strategies (HVST)

It’s been 12 months since we published a performance commentary post on our BetaShares Australian Dividend Harvester Fund (managed fund) (ASX Code: HVST). Given the popularity of that post, we’ve decided to do a refresh – we’ll also make sure we do it every year going forward.

This post may also be helpful for the large number of newer investors in the Fund, who may be eager to stay abreast of the Fund’s performance and how it’s been delivering on its objectives to date.

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Is it time to buy resources stocks?

The Australian materials sector (largely comprising our major miners) has performed relatively well so far this year due to firmer commodity prices and a relatively benign United States interest rate outlook. Although valuations in the sector appear high, they might be justified if commodity prices hold up near current levels and miners are able to keep a tight reign on costs.

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Market Insights: Is the $A still overvalued?

The Australian dollar has proven stubbornly resilient in recent months, thanks to firm iron ore prices and reluctance on the part of the United States Federal Reserve to raise US interest rates. This note updates our valuation model of the Australian dollar, particularly in light of recent comments by the Reserve Bank suggesting the terms of trade may have already bottomed. Based on the analysis, my year-end call for the A$ is 0.72c, declining to 0.68c by mid-2017.

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Global Market Outlook September 2016: Fed fears re-emerge

Solid US economic data and hawkish rhetoric from several Federal Reserve members saw markets last month start to fear re-commencement of US official interest rates hikes.  Whether the Fed hikes rates or not in coming months, a key emerging investment theme nonetheless is a maturing in America’s expansion due to diminished spare labour market capacity. In turn, this continues to favour our long-held defensive stance with regard to growth assets.

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Click here to download the BetaShares Global Market Outlook: September 2016

Is it time to buy global banks?

With expectations rising that the United States Federal Reserve may re-commence its interest rate tightening schedule as early as next month, one potential investment opportunity could be the downtrodden global banking sector. Indeed, it may surprise some investors to know that rising short-term interest rates can in fact help profitability for some global banks, as it helps fatten net-interest margins (NIMs).

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Investing in Commodity or Commodity Company ETFs – which one should I choose?

The ongoing growth of the Australian ETF industry means that investors who have an interest in obtaining exposure to commodities are now able to choose between Commodity ETFs or Commodity Company ETFs. In this post I describe some of the key differences between these two types of products and why an investor may decide to choose one over the other.

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Market Insights: Central banks have lost the plot

This week’s annual meeting of global central bankers at Jackson Hole comes at a time when investors are beginning to question the wisdom of ongoing extreme monetary stimulus.   Contrary to many critics, however, my concern is not that these measures have not worked.  Instead, I maintain they’re simply not needed, as the global economy is as good as might be expected once allowance is made for slowing potential growth and falling commodity prices.  To my mind, the far bigger global risk now is  the impact of persistent misguided extreme monetary measures on financial stability.

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