BetaShares cautions investors on impact of currency on gold performance

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The strong correlation between gold prices and the Australian dollar has impacted unhedged gold exposures which have consistently under-performed hedged gold exposures historically, analysis by BetaShares shows. For example, while spot gold prices surged 74% in the period December 2008 through end May 2011, unhedged spot gold returned only 14%. This is because a rise […]

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How to protect your investments from reputation fallout

Shares in the UK’s BSkyB dropped around 10 per cent over the past week as investors saw the World of the News newspaper hacking crisis as a potentially fatal blow to its proposed takeover by Rupert Murdoch’s News Corporation. Along with the entire editorial staff of the News of the World, investors in the satellite […]

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Gold stocks falling short on returns

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Most of the gold stocks in Australia’s gold mining index returned less than the gold price over the last three years according to E.I.M. Capital Managers. Many investors buy gold producing companies to gain a leveraged exposure to movements in gold prices. The S&P/ASX All Ordinaries gold index increased just 38% over the three years to […]

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The rise and rise of new IPOs in Asia, and Asian investors

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Who would have thought – investing in Asia might soon give investors access to European and US companies. Some of Europe and America’s most prestigious companies are shunning the well-established financial centres of London and New York and looking to Asia as a place to list and sell their shares, as well as their handbags. […]

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What’s next for Asian Equities?

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Having bounced back strongly since the lows of 2008, Asian equity markets have recently been through a soft patch, underperforming developed markets such as the US and broader global indices. What’s next for Asia share markets? The recent softness in Asian equity markets stemmed mainly from worries about the impact of rising inflation and the […]

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Market correction provides opportunities in Asian markets

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The current correction in Asian equity markets will lead to an extended period of consolidation that gives investors the opportunity to take advantage of price weaknesses in strong companies, says Mr Evan Erlanson, Chief Investment Officer at Asian equities manager Seres Asset Management. “Despite the general market correction, we remain optimistic on the broad trend […]

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Focus on investor compensation overlooks protection

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Events such as the recent Trio compensation debate and last week’s release of ASIC research findings on the effects on investors of lack of compensation suggest that prevention and protection is being overlooked. Mr Harvey Kalman of Equity Trustees Ltd says he is concerned that, in the debate over compensation and the reports of the […]

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Are domestic Covered Bonds the solution for banks and investors?

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While Covered Bonds may offer an appealing funding option for banks and give investors alternatives, there are risks entailed, according to Tyndall’s latest research White Paper, “Are Covered Bonds the solution?” The suggestion to introduce domestic Covered Bonds was contained in the Federal Government’s proposals for a “Competitive and Sustainable Banking System”. The Federal Government […]

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Strong balance sheets fuel dividend growth, Russell says

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Australian dividends increase 6.4% Dividend yields rival term deposits Dividends are on the rise with the average dividend across the equity market growing 6.4% over the last six months, according to recent data from Russell Investments, provider of the Russell Australia High Dividend Index (the index). “This reporting season has shown companies are increasingly confident […]

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Time to go Overweight on Energy Stocks – Without Having to Pick Winners

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Energy Sector ETF Allows Investors to Tilt Their Portfolios for Capital Growth Australian-owned sector ETF provider, Australian Index Investments (Aii), believes that with the growth in energy costs worldwide that it might be time for investors to tilt their portfolios towards this growth sector. With a basic underlying energy shortage, rising global demand and revolution […]

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