Australian Boutique expects ASX200 to hit 5500 by year end

Tuesday, April 12 2011

Boutique asset manager Dalton Nicol Reid expects a solid performance from domestic equities for the remainder of this calendar year, forecasting the ASX to finish at 5500.

“The market is reasonably cheap at 11.8 times earnings and domestic earnings have been impacted by a range of factors such as rising interest rates last year, which is not likely to continue, a rising currency, which is hard to see continuing much further, and a cold wet summer. In the absence of these headwinds we see the market performing well over the remainder of the year”, said Dalton Nicol Reid chief investment officer, Jamie Nicol.

Dalton Nicol Reid is well poised to take advantage of this strength in the market. It has been focused for some time on investing in companies with good balance sheets that can be used to take advantage of attractive assets arising post the GFC. This strategy has enabled the Dalton Nicol Reid Australian Equities High Conviction portfolio to outperform the ASX200 by 7.6% over the last 6 months to 31 March 2011.

“Recent performance has been driven by a range of strong stock selections and thematics playing out. We went against the prevailing market view and participated in the QRN float and a range of stocks we held have undertaken acquisitions at good prices which have enhanced returns, Hendersons is a good example of this”, said Jamie.

Dalton Nicol Reid is an independent Australian fund manager that delivers client-focused, quality investment solutions to institutions, financial intermediaries and high net worth investors

 

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IMPORTANT NOTE: This information has been prepared by DNR AFSL Pty Ltd ABN 39 118 946 400, an Australian Financial Services Licensee, Licence Number 301658. Whilst, Dalton Nicol Reid has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within. This document is not intended to provide you with personal advice and in providing this information, Dalton Nicol Reid has not taken into account your particular investment objectives, financial situation or needs. You should assess whether this information is appropriate for your particular needs, either by yourself or with your adviser. Dalton Nicol Reid expressly disclaims any responsibility or liability to anyone who acts or relies upon anything contained in, or omitted from, this document. Past performance is not indicative of future performance. Total returns shown are based on Dalton Nicol Reid’s model portfolio and have been calculated before taking Dalton Nicol Reid’s fees into account. No allowance has been made for taxation.
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