Why cashflow will be critical for Australian small caps this reporting season

One of the features of the FY20 reporting season was the excellent cashflow performance of most Australian small cap companies. With the onset of COVID-19, many companies faced a liquidity crunch as revenue dried up and relief on cost saving measures, government programs including JobKeeper and rent relief took a while to kick in. This … Read more

Six key things to know about super in 2021

The super rules change regularly, and this year is no exception. We are waiting on changes currently before the parliament, anticipating some of the changes announced in last year’s budget, and understanding the impact of SuperStream on self-managed superannuation funds (SMSF), as well as the indexation of the Transfer Balance Cap. Currently before the parliament … Read more

Sector by sector: pathways to recovery in Australian commercial real estate

A low interest rate environment and uncertainty present challenges for investors looking for diversified strategies to defend their portfolios in 2021. As a cyclical asset class, Australian real estate has been subjected to the full effects of the pandemic through the past 12 months, but we believe there are still opportunities for those seeking yield … Read more

Why we see opportunities in consumer-related stocks this year

We believe those who view the exceptional profit upgrades from domestic consumer-related stocks over the last few months as being extremely short-term should consider the current spending capacity – and options for spending – of the Australian consumer. We have found1 that there is a high level of spending capacity left within the domestic consumer. … Read more