In the wake of a significant market sell off following a stimulus induced boom there were plenty of company’s that saw the baby thrown out with the bath water.
Over the past year, TAMIM has identified significant opportunities within the merger and acquisition landscape. Takeovers have proven integral to our fund's successful strategy, evidenced by recent transactions such as Task Group Holdings (ASX: TSK) receiving a bid at a 103% premium while Volpara Health Technologies (ASX: VHT) was also taken over by a bid from Lunit Inc. Healthcare accounts for approximately 10% of the S&P/ASX 200 index and is widely regarded as a reliable and defensive sector that provides returns that are relatively uncorrelated with the rest of an investor’s portfolio and the economy at large–often with less volatility. After all, spending on healthcare is usually non-discretionary–when you need it, you need it–and health challenges occur regardless of the state of the economy. Unlike certain other sectors, such as consumer staples, it is also an area where consumers are willing to spend a greater amount as their wealth increases. An ageing population (as we are experiencing in Australia) is another tailwind for the sector, and technology advancements can also create new opportunities for both revenues and positive patient outcomes.
With the end-of-financial-year reporting season upon us, it’s often good to have a game plan going for when each of the companies you own publishes their full-year financial results. In particular, research has shown that investors often struggle with deciding whether to sell an individual investment. This is often psychological, for example, because they don’t want to sell at a loss, or for fear the stock price will rise after the investment has been sold.
While we encourage long-term investing, there are several important reasons why it may be time to part ways with one or more of your investments. Here are five of the most important ones to keep in mind this reporting season. Fearing a recession is natural. Recessions are an economic reality. They typically start before anyone realises they’re happening and end before economists have enough data to know they’ve finished.
The Financial Times (FT) recently reported that for the first time, the S&P 500, corporate investment-grade bonds and treasury bills are all offering the same yield of 5.3% for prospective investors. The leading financial newspaper provided a useful graphic depicting the three respective yields over the past decade.
Dividend investing is as Australian as Vegemite, Tim Tams,…or maybe pavlova? The ASX has a higher dividend yield than most other share markets around the world, in large part due to the dividend imputation system (commonly called franking). Introduced in 1987, the imputation system gives shareholders a tax credit with their dividend for the tax already paid on these profits by the company.
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TAMIM Asset Management provides general information to help you understand our investment approach. Any financial information we provide is not advice, has not considered your personal circumstances and may not be suitable for you.
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