17 April 2024
Elston Quarterly Portfolio Update Q2 2024
In this video, Portfolio Manager David Seager provides his perspective on the key questions discussed in the recent quarterly asset allocation meeting. Read more
15th October 2013 - Asset Management, Private Wealth
The stock in focus this month is Macquarie Group (MQG). Once the market darling, MQG has had a difficult 5 years since the departure of former CEO Allan Moss. The Group was at ground zero of the financial crisis and the subsequent environment of non-existent deal flow and increased regulation has meant that the company’s market dependant businesses have not significantly contributed to profit for a number of years. At times the Macquarie business model itself has been queried and the stock languished around its book value as investors waited to see if the bank could reinvent itself as it had in previous market downturns.
Over the last 18 months, as the worst of the storm clouds have started to lift from the global financial environment, the MQG share price has staged a strong recovery as earnings have stabilised and we have seen the emergence of new business lines, particularly the Funds Management business, which provides a growing stream of annuity style earnings. MQG has also made a number of purchases of US financial services businesses in an attempt to gain a foothold in the massive US market and early signs from these businesses are encouraging.
Despite the market upheavals and ongoing headwinds MQG maintained profitability throughout the GFC period; however a conservative approach to maintaining excess capital on their balance sheet has negatively impacted their return on equity in recent years. As the need for capital abates we see this capital being returned to shareholders in ensuing years, most probably in the form of an increased payout ratio underwriting higher dividends.
The big driver for growth going forward for MQG is in a strong recovery in global capital markets activity, which will lead to an increase in traditional investment banking businesses that have struggled in the last 5 years. This added to continued growth in the annuity style businesses developed in recent times means that MQG has a great degree of leverage to an increasingly improving global economic outlook and why with a price target of $49 and a forecast yield of 5.7%, we see room for an extension of the recent rallies from the lows and maintain the stock across portfolios.
17 April 2024
In this video, Portfolio Manager David Seager provides his perspective on the key questions discussed in the recent quarterly asset allocation meeting. Read more
10 April 2024
Elston Portfolio Manager Gary Merkel has picked three constituents of the ASX Small Ordinaries Index in the latest Livewire article. Read more
25 March 2024
Just before Easter, Livewire asked four fundies to pick which businesses they thought had the hop on some of the others in their investment universe. Read more
18 March 2024
Following on from the reporting season, Co-Founder and Portfolio Manager Bruce Williams has provided a brief overview of the recent results and what that indicates for the portfolio positioning. Read more
31 January 2024
The Australian Financial Review has recently named Elston Australian Emerging Leaders in their top performers 2023. Read the article to find out more. Read more
18 January 2024
In this video, Portfolio Manager Leon de Wet provides his perspective on the key questions discussed in the recent quarterly asset allocation meeting. Read more
1 December 2023
HUB24 announced the launch of a new whitepaper, ‘Directing the matrix: meeting the advice needs of high net worth clients’. Read now to get insights from Elston Head of Philanthropic Services Susan Chenoweth and many other experienced advisers. Read more
8 November 2023
Investing in what you are passionate about, or even what you consume everyday, can give you an edge. Find out what local stock Elston Co-Founder Bruce Williams has in mind. Read more
13 October 2023
What should advisers think about as they move to managed portfolios? Elston Head of Adviser Services Mark Smith shared his views on how to successfully make the transition. Read more
4 October 2023
We all know Australia is the lucky country, but could it soon be the luckiest? Elston Co-founder Andrew McKie believes it may be possible, and advisers need to take heed. Read more
21 September 2023
Andrew McKie joined 5 other industry leaders at LiveWire Live 2023 as they presented their shocking prediction for the future. What did he predict? And is it good news or bad news? Read more
14 September 2023
Portfolio Manager Leon de Wet has provided a brief overview of the recent reporting season results and what that indicates for future earnings and the portfolio positioning. Read more
25 August 2023
Are our two big supermarkets worth checking out? Read the latest Livewire Markets article to see what Elston Co-Founder and Portfolio Manager Bruce Williams thinks. Read more
12 August 2023
Should investors buy AMP or bypass it? See what Elston co-founder and portfolio manager Andrew McKie thinks and find out how he’s feeling about the ASX100 in general. Read more
1 August 2023
In this video, Portfolio Manager Leon de Wet provides his perspective on the key questions discussed in the recent quarterly asset allocation meeting. Read more
31 July 2023
What makes Carsales such an attractive stock? Elston Portfolio Manager Bruce Williams examines the key drivers that are working for this digital marketplace both here and overseas. Read more
26 July 2023
Last year, some bond indices fell into a black hole. Are good returns from fixed income investing still a galaxy far, far away? Or are there brighter days on the horizon? Read more
23 July 2023
In the latest Livewire's edition of Buy Hold Sell, Andrew McKie talked about which ASX-listed stocks he would want to own (or not own) in a Goldilocks scenario. Read more
20 July 2023
Elston Co-Founder Andrew McKie sat down with Han Lee from Livewire and Rob Crookston from WILSONS to discuss how they find “quality” companies on the ASX. Read more
15 July 2023
Andrew McKie was asked to analyse three stocks that are widely perceived to have those rock-solid qualities and assess whether they have become overcrowded, and name one quality company in the recent Livewire interview. Read more
12 July 2023
If you had a spare $10,000, how would you invest it? It's an interesting hypothetical and one that Elston Portfolio Manager Leon De Wet was happy to answer for Livewrire. Read the article to see his picks. Read more