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IPO Watch

ACDC Metals on the highway to ASX listing

The explorer is seeking to raise $8 million through an initial public offering (IPO) of 40 million shares at $0.20 each, which would give it a market capitalization on listing of $14.5 million.

Mineral sands projects

ACDC’s three Murray Basin projects have been discovered across two styles: strandline, which are narrow, long and high-grade deposits containing zircon and titanium; and Wimmera industrial minerals (WIM) style, which sit as planar and extensive, with significant monazite (REE) content.

Previous work was undertaken in the late 1980s and early 1990s at Goschen Central, located 50km south-southwest of Swan Hill in northern Victoria, with early drilling targeting high-grade coarse-grained strandline style deposits. A large WIM-style heavy minerals deposit was defined within the south-west quadrant of the exploration licence.

ACDC notes another explorer reviewing a similar area in 2002 had estimated zircon grades of 20-27% with additional REE and titanium minerals.

ACDC’s Douglas project comprises two exploration licences: Acapulco and Chetwynd, which had planned to be mined by historical owners by projects were halted due to prevailing commodity prices at the time.

Post-listing, the company plans to define a JORC 2012-compliant resource and undertake scoping and feasibility studies at both Goschen Central and Douglas.

A drilling program is also planned at ACDC’s third project, Watchem, a strandline-style deposit that lies in close proximity to the Donald mineral sands project owned by Astron Corporation (ASX: ATR).

Medallion monazite process

Under a definitive agreement signed in October, ACDC was granted the right to use Medallion’s proprietary monazite processing technology to extract REE from monazite sourced as a by-product of heavy mineral sand production.

The licence agreement included the issue of 4.5 million ACDC shares to Medallion, bringing Medallion’s shareholding in ACDC to about 15% (pre-IPO). Upon successful completion of a pilot plant utilising the Medallion monazite process, the company will receive an additional 2.5 million ACDC shares by converting performance shares.

To take advantage of this technology, ACDC plans to construct a mineral sand monazite processing plant for south-eastern Australia

Upon commercial production, Medallion will be able to convert other performance rights into an additional 750,000 ACDC shares. Following full conversion, Medallion would own 8.05 million shares of ACDC.

Medallion also has the right to purchase or place up to 20% of the ACDC shares issued in the IPO subject to approval of the lead underwriter and Medallion’s diluted ownership not exceeding 19.9% of ACDC’s issued share capital (including the conversion of all performance rights).

In addition, ACDC will pay Medallion a 2% royalty on the sale of mixed REE compounds and other minerals produced by the company’s projects and processed using the Medallion monazite process.

Company Profile

ACDC holds three mineral sand projects on the edge of the Murray Basin in western Victoria – Goschen Central, Douglas and Watchem – where past drilling has demonstrated zircon, leucoxene, rutile and monazite mineralization.

Raised funds from the IPO will be divided between the three projects for drilling and further exploration studies, in addition to monazite processing, which involves extracting and separating REE from monazite mineral sands using technology exclusively licensed from Canada-based Medallion Resources (TSX-V: MDL). Proceeds will also be allocated to corporate and working capital.

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

Categories
ipo IPO Watch

Orpheus Minerals launches $6m IPO to fund domestic uranium Exploration to ASX listing

Orpheus has launched a $6 million initial public offering to kick-start exploration and provide funds for it to chase high-grade sandstone or sediment-hosted and unconformity (hard rock) deposits.

Portfolio of assets

Argonaut has compiled a portfolio of assets within Orpheus and its wholly-owned subsidiary Trachre through direct application as well as corporate transactions with tenement holders.

It includes early-stage projects at Frome/Erudina and Cummins (in South Australia) and Mount Douglas (Northern Territory) and new applications at Ranger-North East (30 kilometers from the decommissioned Ranger uranium mine), T-Bone (the broader area containing at least 13 uranium deposits and 15 occurrences) and Woolner.

The project generation initiative will focus on areas which have seen limited exploration since Australia’s uranium boom of the 1970s, with Orpheus targeting paleochannel and unconformity uranium deposits that are amenable to simple and economic extraction methods.

Orpheus said an opportunity exists to achieve “science-led exploration success” by leveraging new geophysical datasets in terrains which have lacked modern, systematic uranium exploration.

Uranium production

Last year, South Australia and the Northern Territory were responsible for the production of 4,192 tons of uranium, or approximately 8.7% of total world output.

Orpheus aims to capitalize on this success, led by an executive team with experience in the application of advanced techniques for uranium exploration and a track record of financing and developing resource projects around the world.

Underpinning the company’s strategy is a forecast increase in mid to long-term global demand for uranium in an environment where supply from stable jurisdictions (such as Australia) is currently in structural decline.

The World Nuclear Association has predicted demand will jump 27% from now until 2030 and a 38% from 2030 to 2040, with this demand expected to come mostly from the US, Europe or North Asia.

These regions use uranium in the production of zero-emissions power (meaning they do not directly output carbon dioxide during electricity production) and are considered to be viable and safe options for nuclear generation to meet increasing energy needs.

Company Profile

The company, which is a spin-out of Argonaut Resources (ASX: ARE), will also have a significant project generation budget with the aim to expand and build its pipeline.

Orpheus’ IPO will be based on the issue of a minimum 30 million shares at $0.20 each and will comprise a $3 million priority offer for Argonaut shareholders and a $3 million broker firm and general public offer. Argonaut will retain a 26.9% interest following completion of the offer. The offer is being led by Adelaide based broker Taylor Collison and Becketts Lawyers. Orpheus is expected to list on the ASX before month end using the ticker code ‘ORP’.

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

Categories
IPO Watch

Tiger Tasman Minerals seeks ASX listing to advance battery metal and industrial mineral projects

The company is especially hopeful that funds from its initial public offering (IPO) will enable it to advance a feasibility study at its flagship Iron Skarn polymetallic project in North Queensland.

ESG focus and battery metals demand

In a roadshow presentation, Tiger Tasman described its focus on multi-commodity metals essential to electrification and decarbonization as its point of difference. It has an environmental, social and corporate governance (ESG) centric business strategy targeting carbon-neutral status for its operations and a goal of joining the United Nations Global Compact.

The company presented data forecasting rapid growth in the battery market each year as the world continues to transition to electric vehicles, renewable energy generation and energy storage. It also pointed to a 100,000-times increase in demand for raw materials with charging station storage batteries containing more than 600kg of copper alone.

In the chairman’s letter of the prospectus, Tiger Tasman non-executive chairman Richard Beazley said demand for the minerals and metals the company is focusing its exploration efforts on is expected to be “strong” as they are essential to the electrification and decarbonisation of the global economy.

“The company has brought together a board and exploration team with a proven track record and diverse range of skills in the resources industry of Australia and abroad,” he added.

“This uniquely qualified team offers experience and success across the realms of exploration, development, finance and acquisitions and is poised to aggressively explore and develop the projects.”

Iron Skarn pre-development project

Tiger Tasman’s flagship pre-development Iron Skarn polymetallic project comprises one granted exploration permit located 40km from Townsville in the Barringha region of Queensland.

The 12sq km tenement is considered prospective for base metals and hosts the Iron Glen polymetallic skarn deposit, which has an existing JORC 2012 inferred mineral resource estimate of 1.92 million tonnes at 29.3% iron, and 2.9Mt at 13.1 grams per ton silver (outside of the magnetite skarn).

Significant exploration upside has been identified at the Lead Belly prospect, which Tiger Tasman believes could potentially expand the resource inventory.

Up to $1.03 million of the IPO funds (at maximum subscription) have been allocated to undertaking a feasibility study at the Iron Skarn project in the first two years following the company’s ASX listing.

Further exploration planned for the project includes geochemical studies and mapping of Lead Belly, as well as tenement compliance exploration.

Copper Canyon project

Another exploration priority for Tiger Tasman is the underexplored Copper Canyon copper-gold project, made up of 502 sq km under application in WA’s Paterson Province. It is regarded as a tier one exploration destination with neighbors including major companies such as Rio Tinto (ASX: RIO), Newcrest Mining (ASX: NCM) and Cyprium Metals (ASX: CYM).

More than $800,000 of the IPO funds has been earmarked for the Copper Canyon project with planned exploration to include mapping, surface geochemical sampling, heritage surveys, induced polarisation (IP) survey and data processing, as well as drilling of targets identified from the surveying.

Tiger Tasman considered the project “very favorable” in prospectivity, with two anomalies identified on the eastern and western boundaries of the tenement, as well as the number of tier one operating mines and discoveries within a 60km radius of the project (Nifty, Telfer, Winu, Havieron).

Other WA Exploration projects

Additionally, Tiger Tasman also plans to use a portion of its IPO funds for exploration at its three other early-stage projects in WA including detailed mapping, surface geochemical sampling, heritage surveys, IP survey and data processing, and planned drilling and assays in the first 12 months from IPO.

These projects include Fraser Range, located in WA’s Yilgarn Province about 60km from IGO’s (ASX: IGO) Nova nickel mine. At Fraser Range, Tiger Tasman is targeting lithium, nickel, copper and zinc.

Recent exploration work has mapped the presence of pegmatites and samples are awaiting assay to confirm lithium mineralization.

The project is 50Km from the Bald Hill lithium mine and Buldania lithium discovery in what is regarded as the “lithium belt” in WA.

Tiger Tasman’s Mt Minnie project is prospective for high-grade manganese in the Ashburton region where a 4km strike at surface is returning grades exceeding 40% manganese.

The company has mapped the targets and completed sampling at the project.

Over at the Crater project, Tiger Tasman is targeting copper, zinc, lead, silver and gold in the Earaheedy Basin.

Company Profile

It has also assembled rights to acquire 100% interests in Western Australian projects targeting battery and precious metals including lithium, copper, nickel, manganese, zinc, silver and gold.

Tiger Tasman is seeking to raise between $5.1 million and $8 million through the issue of 25.5 million to 40 million shares priced at $0.20 per share. Upon listing, the company is anticipated to have an indicative market capitalization of $9.57 million to $12.47 million (undiluted).

The company’s IPO launched last month and is scheduled to close in October. It expects to start trading on the ASX under the ticker code ‘T1G’.

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

Categories
Shares Small Cap

The Star Entertainment Group Limited, an integrated resort company, provides gaming, entertainment, and hospitality services in Australia

Investment Thesis:

  • Trading below blended valuation (DCF & EV/EBITDA multiple). 
  • Additional cost measures announced to support earnings.
  • Monopolies in the casino industry in SGR’s operating geographies and is one of the market leaders in other games such as slots.
  • Economic moat in the nightlife landscape in Sydney given regulatory environment (such as lock-out laws).
  • Diversified business base across different types of entertainment, hotels, retail stores and food & beverage establishments.
  • Strong tourism growth once borders reopen is expected to be a tailwind for SGR.
  • Lower AUD could improve international spending in domestic markets.
  • Domestic table games segment remains strong.

Key Risks:

  • Weakening VIP segment, potentially making Sydney less viable.
  • Further deterioration of consumer spending and household discretionary income 
  • Regulatory risks e.g., repeal of lockout laws could increase competition in the nightlife landscape in Sydney.
  • Establishment of a new Crown casino in Sydney will increase competition (especially amongst VIP customers) and could potentially dismantle SGR’s monopoly in Sydney.
  • Win-rate risk (if the casinos have a much lower win-rate than the mathematical expected value).
  • Potential scandals.

Key Highlights:

  • FY22 results summary. Compared to pcp: On a normalised basis, gross revenue declined -2% to $1.532bn, EBITDA declined -45% to $237m and NPAT was a loss of $32m (vs profit of $116m in pcp), impacted by Covid-19 related property shutdowns, operating restrictions, and border closures. Statutory net loss (post significant items) was $199m vs profit of $58m in pcp. Operating expenses increased +14% to $909m, reflecting Covid-19 related impacts, inflationary pressures, tight labour market and regulatory review costs (Bell Review, AUSTRAC enforcement investigation).
  •  Operating cash flow declined -61.5% to $181.3m with cash collection down -42% to 81%.  
  • Capex of $141m, within the guidance range of $125-150m and well below D&A expense of $208m. 
  • Balance sheet has ample liquidity position of $513m in cash and undrawn facilities. Net debt declined -2% YoY to $1.15bn, equating to gearing of 2.8x, with the Group fully compliant with June 2022 amended covenants and no covenant relief required for FY23 testing dates. (6) Final dividend scrapped.
  • By segments. Compared to pcp: Sydney revenue declined -6% to $781m and normalised EBITDA declined -60% to $82m, impacted by the closure of the property for 102 days and operating restrictions due to Covid-19, however, domestic revenues rebounded on opening with 4Q22 domestic revenue consistent with pre-Covid levels with slots revenue up +17% on pre-covid levels partially offset by -8% decline in domestic tables. 
  • Gold Coast domestic revenue was up +11% to $424m with non-gaming revenue up +50%, which combined with +27% increase in opex saw normalised EBITDA decline -20% to $90m. Domestic revenues rebounded in 4Q22, up +48% on pre-Covid level with slots revenue up +50%, domestic tables up +23% and non-gaming up +69%. 
  • Brisbane domestic revenue declined -6% to $326m and normalised EBITDA declined -43% to $65m, however, performance improved in April following removal of Covid-19 restrictions with domestic revenue in 4Q22 up +13% on pre-Covid levels with slots revenue up +26% while domestic tables down -4%. 
  • FY23 guidance and trading update. For FY23 capex of ~$150m (vs prior guidance of ~$175m), D&A expense of ~$200-205m, net funding costs of $60-65m and JV equity contributions of ~$115m.
  • Trading update (1 July 2022-18 August 2022) group domestic revenue increased +9% on pre-Covid levels (1 July 2019-18 August 2019) with Sydney domestic revenue in-line with pre-Covid levels, Gold Coast domestic revenue up +26% and Brisbane domestic revenue up +18%.
  • Key executive appointments. Robbie Cooke (ex-CEO Tatts Group and ex-MD Tyro Payments) appointed as MD and CEO. 
  • Scott Wharton appointed as CEO The Star Sydney and Group Head of Transformation.  

Company Description:

The Star Entertainment Group Limited, an integrated resort company, provides gaming, entertainment, and hospitality services in Australia. The Company operates through three segments: Sydney, Gold Coast, and Brisbane. It owns and operates The Star Sydney casino, which includes hotels, apartment complex, restaurants, and bars; The Star Gold Coast casino, which consists of hotels, theatre, restaurants, and bars; and Treasury casino in Brisbane that comprises hotel, restaurants, and bars. The company also manages the Gold Coast Convention and Exhibition Centre. The company was formerly known as Echo Entertainment Group Limited and changed its name to The Star Entertainment Group Limited in November 2015. 

(Source: Banyantree)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and are not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.

Categories
Funds Funds

Fidelity Australian Equities Fund – Fidelity International offers world class investment solutions and retirement expertise

Investment Objective

The investment objectives of the Fund are to achieve returns in excess of the S&P/ASX 200 Accumulation Index over the medium to long term, a core holding which invests in a diversified selection of around 30 – 50 Australian companies, uses a bottom-up stock-selection approach that focuses on undiscovered earnings potential, value and growth and to conducts regular company, factory and competitor visits to assess business strength, earnings quality and long-term growth outlook.

Approach of sustainable investing

z

The approach to sustainable investing has three-fold

  1. The use of proprietary sustainability ratings, input from large specialist ESG team and external analysis and ratings to inform of a company’s ESG performance.
  2. The approach demands direct dialogue with companies and stakeholders on issues such as shareholder rights, modern slavery, supply chain management, bribery and corruption and climate change/risk. Where necessary they use proxy voting and shareholder resolutions to help improve practices.
  3. They work closely with external ESG-related bodies in Australia and around the world that seek to improve the way industries are regulated, how companies are managed, and to promote sustainable investing and social development.

Engagement is at the heart of the approach to sustainability. As active stewards of investors’ capitals that one should be making a positive impact on those companies in which one invests. The rigorous bottom-up research process means to understand ESG issues at a company level and believe that companies focused on these issues are more resilient and are more likely to perform better over the long-term.

Portfolio

Investment Team 

At Fidelity, one understands the value of connected networks. Their 400+ investment experts share their insights in real time across asset classes, sectors and regions, connected by one powerful global research platform. From London to Mumbai, Shanghai to Sydney, the unique local insights from team of more than 170 research professionals around the world to identify unique market patterns and trends and find the best global investment opportunities for you.

Fund Performance and Pricing

Past performance is not a reliable indicator of future results. The value of investments and the income from them can go down as well as up and investors may not get back the amount invested. Data shown does not take into account any Initial Charge that may apply. Fluctuations in currency exchange rates may affect the value of an investment. Please note that the shares are denominated in their respective share class currency and that the currency conversion provides an indicative price only.

About the Fund

The value of your investment may fall as well as rise and you may get back less than you originally invested. The use of financial derivative instruments may result in increased gains or losses within the fund. This fund invests in a relatively small number of companies. This can make the fund more volatile than other funds that are more diversified. There is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. When interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall.

(Source: Fidelity International and Investing.Com)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

Categories
Funds Funds

Zurich Australian Property Securities Fund: is a portfolio of Australian property securities

Investment Objective

To provide investors with an income stream and capital growth over the medium to long term. The Fund aims to outperform the S&P/ASX 300 AREIT Accumulation Index over a period of five years.

Investment Process

The Fund uses a detailed and rigorous investment process with the Managers employing an active, value-based investment style, characterized by incorporating bottom-up investment research into individual securities, with a particular focus on analyzing and forecasting the present and potential future income generation of each underlying property investment. The process consists of two fundamental stages as depicted in the diagram below:

The investment objective of the strategy is two-fold: 

  1. Research – The investment team gathers information through property inspections, company visits, industry analysis, macro-economic analysis and using relevant external research (research from stockbrokers and real estate research houses), before creating financial models of each stock in detail to determine the current and potential future income and to analyse its financial condition. The outputs from the models are then used in Renaissance Property Securities’ proprietary Value Ranking Model.
  2. Portfolio Construction – In this stage the Portfolio Managers meet regularly to determine the size of the active positions to be taken in each stock. The factors which determine the size of active positions within the portfolio include the following: (1) The relative value of each security versus other securities, as determined by Renaissance Property Securities’ Value Ranking Model; (2) Stock specific risks; (3) Size and liquidity of individual stocks; (4) Portfolio risk and; (5) Strength of conviction of the portfolio managers on each individual stock recommendation.

Portfolio

Investment Team 

Zurich Investments provides exclusive access to specialist managers recognised as being amongst the best in their area of expertise. The Company appointed Renaissance Property Securities Pty Ltd (Renaissance) as the strategic investment partner for the fund in November 2005, which is owned by two experienced investment professionals who directly manage the Zurich Australian Property Securities Fund. With over 45 years’ combined experience, investors benefit from the Fund Managers’ successful track record and focused expertise in Australian property securities investing. Below are the provided the bios of Portfolio Managers.

  • Carlos Cocaro – Portfolio Manager. Carlos has over 30 years of experience in managing, analyzing, and researching listed property securities. He began analysing listed property securities in 1986 as part of Armstrong Jones’ Australian equities team and joined Rothschild Australia Asset Management in 1994 as a specialist in listed property securities analysis and portfolio management. In 1997 he was promoted to Director, heading up the growing property securities team, a position he held until he formed Renaissance Property Securities in 2003.
  • Damien Barrack – Portfolio Manager. Damien has over 20 years’ experience managing, analyzing and researching listed property companies. Damien joined Carlos Cocaro in the Rothschild property securities team in 1998 where they worked together until 2003. Damien co-founded Renaissance Property Securities in 2003.

Fund Performance and Positioning 

Asset Allocation

About Fund

The Zurich Australian Property Securities Fund is a portfolio of Australian property securities, spread across retail, commercial and industrial property sectors, with an objective to provide investors with an income stream and capital growth over the medium to long term. The Fund aims to outperform the S&P/ASX 300 Property Trusts Accumulation Index over a period of five years.

(Source: Banyantree and Investment centre)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

Categories
Funds Funds

JPMorgan Global Macro Opportunities Fund- multi-asset macro thematic fund targets positive returns in various market conditions

Investment Objective

To achieve capital appreciation in excess of its cash benchmark by investing primarily in securities, globally, using financial derivative instruments where appropriate.

Investment Process

The Fund’s investment process is driven by the investment team’s proprietary macroeconomic research agenda. The process is best summarized by the diagram below. The added advantage is the investment team’s ability to leverage JP Morgan’s extensive global platform for insights and reach. The team is regularly assessing existing and new investment strategies via daily meetings, weekly macro discussion, monthly core views updates and then also a quarterly strategy summit. 

A macro theme must be sufficiently different to existing themes already in the portfolio and the team needs to be able to measure the trends of changes it captures.

Investment strategy. A strategy can be sourced from anywhere including the investment team or JP Morgan’s broader global investment network. Each recommended strategy has a clearly defined macro-theme. The team categorizes each strategy into two broad categories – Traditional (e.g. long-only exposure) and Sophisticated (e.g. derivatives, directional).  

Portfolio construction and management

Portfolio Construction & Management. The lead portfolio manager has the ultimate decision-making power on which investment strategies are included in the portfolio, the team does generally tend to follow a consensus approach. The portfolio can have exposure across all major asset classes – equity, fixed income, commodities, currency and advanced derivatives – and exposure to both developed and emerging markets. The portfolio at any one time is expected to be made up of 6 to 10 macro-economic themes, which can equate to between 20 – 40 strategies. This means the overall portfolio can hold at any one time, typically, 100-150 securities. While monitoring the macro is continual, much of the macro debate is at a monthly meeting, where the teams might discuss risks to their core theses and potential paths of evolution in the macro landscape, as well as making changes to the macro themes, including removing or adding a new theme.

Investment Team 

Shrenick Shah: Shrenick Shah, managing director, is head of the Macro Strategies team at J.P. Morgan Asset Management, based in London. An employee since September 2010, Shrenick previously worked in the equity divisions at Deutsche Bank and Credit Suisse. Shrenick obtained a M.Sc. in Econometrics and Mathematical Economics from the London School of Economics.

Benoit Lanctot: Benoit Lanctot, Executive Director, is a portfolio manager in the Macro Strategies team, based in London. An employee since July 2011, Benoit previously worked as a senior analyst in the Convertible Bond team within Multi-Asset Solutions, responsible for the implementation of the fundamental analysis framework with global coverage. Prior to that, Benoit worked in investment banking for the Diversified Industries Group of Scotia Capital Inc. based in Montreal, Canada. He obtained a B.BA with a major in Finance from HEC Montreal and a Masters in Finance from London Business School. Benoit is a CFA and a CAIA charter holder. 

Josh Berelowitz: Josh Berelowitz, executive director, is a portfolio manager in the Macro Strategies team, based in London. An employee since September 2011, Josh has been focused on the macro portfolios since inception of the strategy in November 2012. Josh obtained a B.Sc. in Economics from the University of Nottingham and is a CFA charter holder.

Virginia Heriz: Virginia Heriz, executive director, portfolio manager in the Macro Strategies team, based in London. An employee since November 2019, Virginia previously was a portfolio manager at Aberdeen Standard Investments where she was responsible for tactical asset allocation portfolios and segregated multi asset mandates. Prior to that, Virginia was an analyst covering global financials at Martin Currie Investment Management. Virginia has a Diplôme d’Ingénieur from the École Nationale Supérieure des Telecommunications, Paris and a Masters in Telecommunications Engineering form the Universidad Politécnica de Madrid. 

Fund Performance and Positioning 

About Fund

The Fund employs a macro-thematic investment framework to achieve capital appreciation in excess of its cash benchmark by investing primarily in global securities, with the ability to use financial derivatives. The Fund targets +7.0% p.a. annualized over the medium term (net of fees) and/or above the Bloomberg AusBond Bank Bill Index, with a volatility of less than 10% p.a.

(Source: Banyantree and Investment centre)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

Categories
Funds Funds

T. Rowe Price Global Equity Fund- T. Rowe Price Group provides a broad array of mutual funds

investment stockbroker risk analysis using multiple devices. Financial analysis using phone app and laptop. Market trading profit.

The Fund’s investment objective is to provide long-term capital appreciation by investing primarily in a portfolio of securities of companies which are traded, listed or due to be listed, on recognised exchanges and/or markets throughout the world. The portfolio may include investments in the securities of companies traded, listed or due to be listed, on recognised exchanges and/or markets, of developing countries. The Investment Manager may seek to achieve the Fund’s objective through investment of up to 100% of the Fund’s assets in one or more managed investment schemes, managed by the Investment Manager or an affiliate of the Investment Manager, that have the same or similar investment objectives as the Fund. The Investment Manager will seek, where material and to the extent reasonable, to reduce the Fund’s exposure to the fluctuation between its currency of denomination (ie AUD) and the currencies of investment of the Fund through the use of various techniques including the use of Derivatives such as forward currency contracts, currency options and futures.

Process

The investment process involves determining the Fund’s investment universe, which includes companies traded, listed or due to be listed, on recognised exchanges and/or markets, of countries which T Rowe Price has determined are developed or developing countries. T. Rowe Price leverages the proprietary fundamental research and analysis performed by the organisation’s integrated worldwide network of more than 400 equity investment professionals to identify highly recommended companies. T. Rowe Price engages equity investment professionals to identify superior investment ideas, assess opportunities in a global sector context, overlay macroeconomic and local market factors to refine industry and company analysis, and select what it believes to be investments with the most attractive risk-reward characteristics. The Investment Manager is actively involved with the network of equity investment professionals during the idea generation and refinement process. Ultimately, the portfolio manager applies judgment to construct a focused global portfolio consisting of the highest conviction investment ideas, within a diversified framework of country, sector and company guidelines.

People

Chris Di Leva, CFA Director, Portfolio Manager, Andrew Bascand Managing Director, Portfolio Manager, Lewis Fowler, CFA Investment Analyst.

Performance

To provide long-term capital growth by investing primarily in a portfolio of securities which are traded, listed or due to be listed, on recognised exchanges and/or markets throughout the world.

Price

They have partnered with Baltimore-based fund manager T. Rowe Price to offer this global equity fund in New Zealand. It contains a broadly diversified portfolio of global equities, typically comprising around 150 stocks. This high conviction portfolio contains companies which the T. Rowe Price team believe exhibit above-average and sustainable growth characteristics

Asset Allocation

About Fund

The T. Rowe Price Global Equity Fund is a high conviction, truly global portfolio seeking to invest in durable quality growth companies in some of the most fertile industries around the world. T. Rowe Price Australia Limited (“Investment Manager” or “T. Rowe Price”) is a subsidiary of the Baltimore-based T. Rowe Price Group, Inc. which is a global investment management organisation with $2.16 trillion in assets under management as of June 30, 2021. T. Rowe Price Group provides a broad array of mutual funds, sub-advisory services, and separate account management for individual and institutional investors, retirement plans and financial intermediaries. The organisation also offers sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined and risk-aware investment approach focuses on diversification, style consistency and fundamental research.

(Source: Banyantree)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

Categories
ETFs ETFs

BetaShares Global Robotics and Artificial Intelligence ETF – RBTZ aims to track the performance of an index that includes global companies

Approach

In seeking to achieve the investment objective for each Fund, the Responsible Entity will employ a passive management approach that aims to track the performance of the relevant Index, before fees and expenses. Unless otherwise set out in the Product Supplement, each Fund will generally invest in the securities that comprise the relevant Index in proportion to the weightings of the securities in the Index. This is known as a “full replication” strategy. For such Funds, the timing and nature of any changes to the composition of the Fund’s investments will generally correspond with the timing and nature of changes to the relevant Index. In a variety of circumstances, however, the holdings of a Fund may not exactly replicate its Index. For example, it may not be possible or practical to do so in some circumstances, such as where investment restrictions apply which would prevent direct investment in a particular security. A Fund, from time to time, may not hold all of the securities comprising the Index and may hold securities in weightings which differ from the Index. Some Funds will generally not hold all of the securities comprising the relevant Index and may hold securities in weightings which differ from the Index. This is referred to as a “sampling” strategy. A sampling strategy is often used for funds tracking an index that is too broad to efficiently purchase all of the index’s securities. For Funds where a sampling strategy is used, this is noted in the relevant Product Supplement. For such Funds, the sampling strategy is based on a portfolio of securities that may be a sub-set of the constituents of the Index and that aims to be representative of the characteristics of the constituents of the Index as a whole. The aim of a sampling strategy is to construct a portfolio that provides a return profile comparable to that of the Index.

Portfolio

The Index seeks to track the price movements of a portfolio containing the top 50 technology and online retail stocks, by free float market capitalization, that have their main area of business in Asia excluding Japan.The Index is normally reconstituted and rebalanced semi-annually, with the new portfolio becoming effective at the close of trading on the first Wednesday in May and November each year.

Portfolio Holdings

People

Adam O’Connor is a member of the BetaShares Distribution team responsible for supporting Institutional and Intermediary Broker and Adviser channels. Alex is a member of the BetaShares Sales & Distribution team, responsible for assisting with client inquires and providing portfolio analytics support to the sales team. Alex is a member of the BetaShares Distribution team, responsible for supporting Institutional and Intermediary Broker channels.

Performance

RBTZ aims to track the Indxx Global Robotics & Artificial Intelligence Thematic Index before fees and expenses. The Index focuses on identifying the industries and sub-themes positively impacted by robotics and A.I. The Index includes companies involved in Industrial Robotics and Automation, Non-Industrial Robots, Artificial Intelligence and Unmanned Vehicles and Drones. To qualify for inclusion in the Index, a constituent must have a minimum market capitalisation of US$100 million.

About the Fund

Robotics involves the idea, design, creation, and application of programmable mechanical devices that can perform tasks and interact with their environments without human input. A.I. is a division of computer science that emphasises the conception of intelligent machines that can work, react, and learn like humans in order to recognise speech, plan, and solve problems. Robotics and Artificial Intelligence is a transformational technological development, with the ability to disrupt multiple industries due to significant economic incentives related to ageing populations, rising labour costs, and opportunity for performance improvements.

DISCLAIMER for General Advice:

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

Categories
Property

Goodman typically retains a minority stake and continues to manage sites after completion

Business Strategy & Outlook

Goodman Group is one of the world’s premier developers and managers of industrial property projects and investments. The group was cofounded in Australia by Gregory Goodman who remains CEO, and now has projects and customers in Asia, Europe, and the Americas. A typical project involves obtaining a development site, signing tenants onto leases, and attracting investors who pay for the development and buy the completed project. Goodman typically retains a minority stake and continues to manage sites after completion, collecting development fees, leasing fees, management and performance fees, and a share of rent. The group’s development pipeline has grown substantially, driven by the race to build e-commerce capability, modernize supply chains, and build data centers. Most of the group’s development projects end up in Goodman managed investments, boosting the group’s assets under management enormously. This is to continue for the next few years as the race continues for the best logistics and data center sites, closest to transport links and the end consumer. Goodman should benefit from its expertise, and its legacy holdings of property, many of which are close to urban centres, and therefore more attractive than outlying greenfield industrial sites.

However, the remarkable returns eventually slow down to a more modest level. First, there is only so much existing property that can be sold and developed, before new sites need to be acquired, likely at substantially higher prices. Second, much greater competition in future is visible as many rivals are growing their presence in industrial property. GPT sold its stake in iconic office building 1 Farrer Place, with its rationale in part to rotate more capital into industrial property. Likewise, Dexus, Charter Hall, Mirvac, Stockland Growthpoint, and Cromwell are all eyeing opportunities on the sector, plus Goodman must content with major overseas players such as Prologis and others.

Financial Strengths 

Goodman Group is in strong financial health. Gearing (net debt/assets) on the company’s balance sheet was 8.5% as at June 30, 2022, which is at the low end of the group’s stated gearing range of 0-25%. Look-through gearing (incorporating debt within Goodman’s investment vehicles) was 19.6%, which is still modest considering the long leases to strong tenants, and valuable assets owned by the funds. Both measures of gearing are likely to creep up in the next few years as Goodman increases development work in progress. This is due to new projects in the pipeline commencing, plus larger scale projects that take longer to complete. However, Goodman has a high proportion of pre-commitments from strong tenants, reducing the risks around servicing debt. Most development spend will be funded by Goodman partnerships, limiting Goodman’s own outlay. The large number and variety of partnership vehicles limits the risk for Goodman Group. Should any one investment run into trouble, the risk is likely to be contained to that vehicle, though there could be reputational risks for Goodman.

Bulls Say

  • Investment in industrial property is ramping up as retailers recognize the importance of e-commerce, and also move to add certainty and efficiency in their supply chains.
  • Global capital is still chasing exposure to property, and particularly industrial property given strong rental growth at present.
  • New fund inflows add to Goodman Group’s fee revenue. Although it is not risk-free, long lock-ins on its funds management vehicles bestow annuity-like characteristics to this revenue.

Company Description

Goodman Group develops and manages industrial property investments worldwide. Rather than taking all risks on its own balance sheet, most Goodman developments are on behalf of end-user tenants, and funds management clients. A typical deal involves purchasing land for a tenant who wants to occupy the site, and/or an investor who will own the asset via a Goodman investment vehicle. Goodman charges leasing fees for locking in tenants, and fees for managing the development. Completed projects reside in Goodman investment vehicles, and Goodman charges asset and investment management fees to investors, in return for collecting rent and managing the site. Goodman retains a minority stake in many projects, generating rental income and aligning its interests with its fund’s management clients.

(Source: Morningstar)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice. The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

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