View more on these topics

First State opens door on Australian equities to UK investors

First State Investments has created a Dublin-based fund that invests in Australian equities.

As the name suggests, the Australian growth fund aims for growth by investing mainly in big Australian companies. It can also invest in companies elsewhere that have their main business activities in Australia.

The portfolio is concentrated, typically holding 25-50 companies with healthy balance sheets, strong earnings and good prospects to outperform their peers over the medium to long term.

The company says solid economic conditions in Australia are driving demand for an Australian equities based product in other markets around the world, including the UK. The firm believes that it is well placed to provide this because its Sydney-based Australian equities growth team has been running portfolios in this area since 1989.

The lead manager for the fund is Naz Ressas, a portfolio manager in First State’s Australian equities growth team. He joined First State in January 2006 from UBS Global Asset Management where he was a senior Analyst for three years. Ressas has more than 11 years’ experience as an analyst, having previously worked for Alliance Capital Management and Tower Asset Management in Australia.

The team believes that company profits are dictated by industry profits and looks for companies that are with the potential to outperform other firms in the same industry.

Australia is rich in natural resources so a couple of Australia focused funds available to UK investors  – Thesis Australian natural resources and the Oceanic CF Australian natural resources – focus on the sector. Australia’s mining stocks have performed well recently but a broader fund can provide diversity, although the Australian building and retail sectors are facing difficulties.

As a broader Australian fund, Baring Asset Management’s Dublin-based Australia fund provides a more direct comparison, but First State’s Australian experience makes it a serious competitor.


Skandia UK profits down due to policyholder tax smoothing

Skandia UK’s pre-tax profits slumped 29 per cent from £75m in the first half of 2010 to £53m this year, interim results reveal. Skandia says the decline is “solely” due to a lower profit from smoothing of policyholder tax on the firm’s unit-linked policies. It says this resulted in a benefit to the firm’s accounts […]

FSA says platforms must consider orphan client strategies

The FSA has raised platform concerns over what happens to clients who no longer want to deal with their adviser. In its policy statement ps11/9 published today, the FSA warned platforms they will have to “carefully consider its contractual obligations” to clients who decide they no longer require the services of an adviser. It says […]

Northern Rock losses halved

Northern Rock has halved its losses to £68.5m in the first half of the 2011 and has announced that it expects to begin trading profitably in the second half of 2012. The £68.5m statutory loss compares to a £142.6m loss in the first half of 2011, a fall in losses of almost 52 per cent. […]

When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm