Tag: Australian Market
SPDR Dow Jones Real Estate ETF DJRE is a sensible option for investors seeking exposure to diversified global real estate. DJRE tracks the Dow Jones Global Select Real Estate Securities Index, a market-cap-weighted index (rebalanced quarterly) via full replication.
Approach
DJRE aims to fully replicate the Dow Jones Global Select Real Estate Securities Index. Stocks included in the index must derive 75% of revenue from owning and operating properties, have a market cap of at least USD 200 million at the time of inclusion, and meet certain liquidity requirements. In simple terms, companies in this index generate most of their revenue from rent.
Portfolio
Real estate investment trusts make up about 85% of the portfolio while approximately 10% of DJRE’s holdings are property developers and non-REIT property managers. The US continues to dominate the portfolio, forming more than 65% of regional exposure in October 2021. Other sizable weightings include 10.2% in Japan, 4.6% in Australia, 4.5% in the United Kingdom, and 3% in Singapore. The remainder is in Hong Kong and developed European markets such as Germany, France, and Sweden.
People
John Tucker has been appointed as the new chief investment officer, Effectively from September 2021, replacing Lynn Blake, who has taken retirement. Tucker is a State Street veteran who has been in multiple senior leadership roles within GEBS for the past 20 years. Australia-domiciled passive products are managed by a core team of Tucker and four portfolio managers: Alexander King, Lillian Poon, Andrew Howson, and Elda Dong.
Performance
(Source: Factsheet)
Top holdings of the fund
(Source: Factsheet)
About the fund
SPDR Dow Jones Real Estate ETF DJRE is a sensible option for investors seeking exposure to diversified global real estate. DJRE tracks the Dow Jones Global Select Real Estate Securities Index, a market-cap-weighted index (rebalanced quarterly) via full replication. The fund derives strong support from the global reach and execution capabilities of its parent State Street. With around 250 total holdings and less than 30% exposure in the top 10 holdings, the target benchmark is well diversified. The index consists of globally traded real estate investment trusts and real estate operating companies–companies generating most of their revenue from rent
(Source: Morningstar)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
Approach
ETHI tracks the Nasdaq Future Global Sustainable Leaders Index, a benchmark co-developed with BetaShares in November 2016. ETHI comprises 200 stocks that have above-average ESG characteristics. It uses a float-adjusted market-cap-weighted approach, starting with a universe of 6,000 stocks listed in North America, Europe, or Asia (ex-Australia). By adding ESG considerations, the index differs markedly from other passive and ESG indexes. A carbon screen identifies companies that lead in terms of carbon efficiency; these tend to be in the top one third of their industry for carbon efficiency. A minimum of five Scope 4 leaders is required in the index. A market cap and developed markets screen cuts the investable list to under 500. Analysts then perform negative screens until the 200-name portfolio is left.
Portfolio
A change in April 2020 has led to the portfolio providing exposure to the largest 200 global ex-AUS stocks by capitalisation that are considered climate change leaders. Further they must not be materially engaged in activities deemed inconsistent with responsible investment considerations. Stocks must have a market cap of more than USD 3 billion and three month trading volume of over USD 1 million. The index differs largely from other passive and active indexes with sector skews to healthcare, consumer cyclicals, financials and technology.
Top 10 Holdings
| Company | Weighting (%) |
| NIVDIA Crop | 6.0% |
| Apple Inc. | 4.3% |
| Home Depot | 3.8% |
| Visa Inc. | 3.4% |
| Adobe Inc. | 2.8% |
| Mastercard Inc. | 2.8% |
| ASML Holding NV | 2.7% |
| PayPal Holdings | 2.6% |
| Toyota Motor Corp. | 2.3% |
| Cisco Systems Inc. | 2.3% |
People
Nguyen was an equity analyst at Three Pillars Portfolio Managers, where his responsibilities included systems development, risk management, and securities analysis. The committee comprises Betashares co-founder David Nathanson and Adam Verwey, a managing director of large investor Future Super. In September 2020, Simon Sheikh stood down and was replaced with Kylie Charlton, managing director of Australian Impact Investments.
Performance
However, from its Feb. 21, 2020, peak the strategy actually fell 22.74% to March 23, 2020. Since then, the strategy has made a remarkable turnaround. ETHI closed the calendar year 2020 with a n absolute return of 24.94%. The rally continued into 2021 and as of Sept. 30, 2021, the fund’s returns for the calendar year are 20.85%.The fund has remained within the 15-basis-point tracking error and the bid/offer spread was indicated to have remained below 30 basis points, averaging around 20 basis points.
About the Fund
ETHI aims to track the performance of an index (before fees and expenses) that includes a portfolio of large global stocks identified as “Climate Leaders” that have also passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.
(Source: MorningStar)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
Radiopharm Theranostics Limited issued 83.33 million shares at an offer price of AU$0.60 a piece, giving a market capitalisation of AU$152 million at the issue price.
The Offer comprises:
(a) the Broker Firm Offer, which is available to Australian resident retail clients of Brokers who have been assigned a firm allocation of Shares by their Broker.
(b) the Institutional Offer, which is an invitation to Institutional Investors in Australia and a number of other eligible jurisdictions to apply for Shares; and
(c) the Chairman’s List Offer, which is an invitation to selected Australian investors who have received an invitation from the Chairman or the Company to apply for Shares.
Use of funds
(a) make payments under the Licence Agreements
(b) conduct research and development into other cancer targets
(c) provide working capital; and
(d) set up commercial and academic collaborations.
Important dates
| Events | Dates |
| Prospectus date | Thursday, 14 October 2021 |
| Offer opens | Friday, 22 October 2021 |
| Offer closes | Friday, 5 November 2021 |
| Anticipated date of allotment | Tuesday, 16 November 2021 |
| Shareholding statements expected to be dispatched | Friday, 19 November 2021 |
| Anticipated commencement of ASX trading | Thursday, 25 November 2021 |
Subscription Status: The shares of Radiopharm Theranostics Limited were oversubscribed.
Company Profile:
Formed in February 2021, the homegrown health care company focuses on the development of radiopharmaceutical products for diagnostic and therapeutic uses in areas of high unmet medical needs. The Company aims to become an industry leader in the development of radiopharmaceutical products, targeting some of the largest markets in cancer.
The Company has a balanced portfolio of four licensed platform technologies, with diagnostic and therapeutic applications in both pre-clinical and clinical stages of development, from some of the world’s leading universities and institutes such as Imperial College London and Memorial Sloan Kettering.
The portfolio comprises five Phase 2 clinical trials and two Phase 1 trials, which are underway along with five Phase 1 trials, which have been wrapped up across hospitals and medical centres globally. The clinical trials target a range of cancers including that of breast, lung, kidney, head & neck, pancreatic and brain.
( Source: https://www.radiopharmtheranostics.com/)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
The Fund is suitable for investors seeking to distill out the influence of the returns of the largest 20 listed companies on the ASX and looking to tilt towards growth. As a result, the fund invests in stocks outside of the top 20 subsets of the market but with at least a minimum of $250m market cap. The manager is more of a purist stock picker who seeks to invest in companies he feels are on a genuine earnings growth path and feels that such companies are not common and to find these companies requires thorough and focused bottom up research process.
Investment Team:
The BAEP investment team consists of Mark East: Chief Investment Officer and Portfolio Manager, Keith Hwang: Director, Quantitative Research, Neale Goldstone-Morris: Senior Investment Analyst, Strategy, Kieran Sisson, Doug Macphillamy, Brad Clibborn, Jack Briggs: Senior Investment Analyst and Todd Briggs: Investment Analyst
Key Highlights:
- The manager conducts deep dive, bottom-up research on companies it invests in. With a thorough understanding of their stock positions, the manager takes high conviction and genuinely active bets relative to the benchmark.
- The fund has been investing since 2009 – the immediate aftermath of the global financial crisis. Since then, there have been several periods where market volatility has tested the manager’s ability to generate returns while following their investment process.
- The Fund’s focus on stocks outside of top 20 ASX listed companies provides investors an opportunity to diversify and distil growth from typical core domestic equity strategies that are heavily influenced by the performance returns of shares in the top 20 listed companies.
- The team of eight experienced analysts includes the PM.
- The fund’s macro analyst provides top down insights on the macro and guides the team to where the team should focus their research.
Downside Risks:
• An economic recession in Australia/globally, leading to earnings recession
• Stock selection fails to yield alpha
• Key man risk – the PM (Mark East) departs – given he has the ultimate responsibility of running the strategy
Investment Process:
- From all of the stock listed on the ASX, BAEP applies a screen to derive an Investment Grade Universe from which to find investment opportunities. The filters include a market capitalisation of greater than $250 million, sufficient liquidity, an earnings track record.
- Idea Generation aims to identify those stocks within the Investment Grade Universe that warrant particular attention, thereby focusing research efforts on the most prospective candidates. The ideas build up into the Focus List.
- Stock analysis is extensive and includes quantitative and qualitative analysis including field research.
- Portfolios are constructed on a stock-by-stock basis. The inclusion, sale and weighting of a particular stock is determined by reference to a number of factors
- The portfolio is constantly monitored, tested and optimised with ongoing changes.
Performance:
Fund Positioning:
About Fund:
The Fund’s objective is to outperform the S&P/ASX 300 Accumulation Index excluding the portion of return attributed to the S&P/ASX 20 Leaders Index, by 4% p.a. after fees on a rolling 3-year basis. The Fund invests primarily in Australian shares with high quality business models, strong growth, and underestimated earnings momentum and prospects.
(Source: Banyantree)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.