March 2016 Review & Comments
Written by Tony Gray   
Monday, 16 May 2016 10:48

Portfolio Report – April 2016


My comments this month are very brief. We are working through client reviews in a compressed time-frame – such that any planning action required before the budget or prior to 30 June has been considered.

We remain wary in relation to markets and still sit on the conservative side of investment ranges. We do see some good opportunities amongst very small companies (microcaps), but for many portfolios these are not appropriate – although a managed fund may be an alternative.

The ‘market’ is becoming more aware of the potential risks to the banking sector.  Basel international committee rules (still to be finalised) will likely result in the major banks needing to further increase capital by January 2018 - further diluting earnings. Bad debt provisions have also begun to rise (from very low levels).

There are more reasonably priced assets becoming available that may be worth adding to portfolios but, with trends still generally negative, we are tending to stay on the sidelines and hoping to see more of a margin of safety (i.e. lower prices).

As always, please make contact with any questions about your portfolio and positioning.

Best wishes,


A.W. (Tony) Gray BCom, LLB, Dip FP, GDipAppFin, CFP, FFin

Principal, TG Financial



Please treat the above comments as General Advice or general information, with no action to occur until we have considered with reference to your financial position, needs and goals.

Last Updated on Monday, 16 May 2016 10:53
 

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