Monthly Investment Review April 2013

Friday, May 10 2013

As a result of the Japanese quantitative easing and low interest rates globally, markets have rebounded with interest re-emerging for companies which pay attractive yield. It is becoming apparent that bonds do not offer investors an attractive yield, and investors need to take on equity risk in order to receive a reasonable return. In Australia this has been demonstrated most notably in the strong share price appreciation of the banks. We discuss this issue this month in relation to our current portfolio positioning, and in particular we focus on the valuation of the banks at present.



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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