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Devon Webinar August 2019 Australian Housing Market Finding a Floor

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Devon Webinar August 2019 Australian Housing Market Finding a Floor Devon Webinar August 2019 Australian housing market finding a floor This price downturn is now the longest slump on record For the 2 informed Source: UBS investor. Australia reporting season update Reporting season upgrades/downgrades Source: MST For the 3 informed investor. The collapse in bond yields globally since late 2018 has been spectacular Negative yield bonds have surged back to a record …and this time a meaningful share of corporate debt is also share of outstanding debt.. negative yielding For the Source: JP Morgan, Bloomberg Source: Bloomberg, Deutsche Bank 4 informed investor. Negative yields mainly Europe, but sharp falls widespread Genuinely negative yields largely a Euro issue - the entire curve of 4 countries is negative yielding NZ and Australian 10 year bond currently flirting with 1% For the 5 informed Source: JP Morgan; Factset; Devon investor. Parts of the market have seen yields compress aggressively But compression has not generally been as sharp as in bonds, and parts of the market haven’t moved much at all For the 6 Source: Factset; Devon informed investor. Property stocks: bond proxies that have again re-rated Australasian property generally trading well above price-to-book, though some notable exceptions For the 7 Source: Factset; Devon informed investor. Devon Dividend Yield Fund Company Name Country % Fund Assetallocation Contact Energy NZ 6.0 Spark NZ 6.0 NAB AU 5.5 Z Energy NZ 5.0 Meridian NZ 5.0 BHP AU 4.0 URW AU 4.0 Sydney Airport AU 4.0 Scentre Group AU 4.0 Sky City NZ 4.0 KPG NZ 3.5 Genesis Energy NZ 3.0 Rio Tinto AU 3.0 Mercury NZ 3.0 NZ AU Cash Air New Zealand NZ 2.5 For the 8 informed investor. Devon Alpha Portfolio Company Country % Fund Z Energy NZ 8.0 Contact Energy NZ 7.5 CSL AU 6.0 James Hardie AU 6.0 a2 Milk NZ 5.5 Sky City NZ 5.5 NAB AU 5.0 Aristocrat AU 5.0 EBOS NZ 5.0 NZ AU Cash For the 9 informed investor. Devon Trans-Tasman Portfolio Company Name Country % Fund Assetallocation Contact Energy NZ 7.5 NAB AU 5.0 CSL AU 5.0 a2 Milk NZ 5.0 Aristocrat Leisure AU 4.0 Meridian NZ 4.0 Spark NZ 4.0 Z Energy NZ 3.8 BHP AU 3.5 Vista Group NZ 3.5 Westpac AU 3.5 James Hardie AU 3.0 Rio Tinto AU 3.0 Suncorp AU 3.0 NZ AU Cash Atlas Arteria AU 3.0 For the 10 informed investor. Contact Energy – well positioned in the sector For the 11 Source: Contact Energy informed investor. James Hardie – strong Q1 result, the re-rate has begun US mortgage purchase applications JHX PE ratio 1-year forward versus Industrials Index Source: JP Morgan For the 12 informed investor. INFORMATION AND DISCLAIMER: This document is not a Product Disclosure Statement (PDS) under New Zealand law or under any other law. It is for information purposes only and contains summarised information. Accordingly, this document neither purports to be exhaustive nor contains all of the information which a prospective investor or the recipient may require to make an investment decision. This document does not contain all of the information which would otherwise be required by New Zealand law or any other law to be disclosed in a PDS or similar disclosure document required under foreign law. Prospective investors should inform themselves as to any applicable legal requirements and taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant. A PDS for the fund/s mentioned in this presentation is available free from Devon Funds Management Limited. Investors should read and understand the PDS for the relevant fund(s) in which they invest and satisfy themselves they understand all the terms and conditions of investment in the fund/s. The information in this document is not intended to be advice. In preparing this document, Devon Funds Management Limited did not take into account the investment objectives, financial situation and particular needs of any particular person. Devon Funds Management Limited recommends that potential investors consult their financial adviser and obtain professional financial advice on their individual requirements before making any investment decisions. Past performance is not indicative of future results. Investments in any of the Devon Funds are subject to investment risk, including possible delays in repayment and loss of income and capital invested. Neither Devon nor any related company of Devon, guarantees any particular rate of return on, or the performance of, the Devon Funds, nor do they guarantee the repayment of capital from the Devon Funds. For the informed investor..
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