Bank probe prompts board-exec relationship reset |
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<p><strong>David Ellis:</strong> The key takeaways from the two weeks of hearings was that the relationship between senior executives, particularly the CEOs and the chairman and the boards of directors have really been recast and this just does not affect the four major banks or the financial services industry. It has broader, very broad consequences and implications across all public listed companies.</p>
<p>I think, going forward, we will see chairman and boards of directors taking a lot greater interest and focus on regulatory issues, compliance issues, government's issues. Boards and directors will want to be convinced that these key issues are under control. So, they are some of the quick takeaways from round seven of the Royal Commission hearing.</p>

20/02/2019 As margin pressures keep profits flat for supermarket giants Woolworths and Coles, the market is gradually realising their share prices are too high, says Morningstar’s Johannes Faul.

19/02/2019 Unconstrained bond strategies can outperform traditional fixed income in rising rate environments but the full story is more nuanced, says Morningstar’s Tim Wong.

18/02/2019 Describing China's A share market as 'a stock pickers' paradise,' T Rowe Price's Eric Moffett is among a cohort of professional investors rushing to identify the best opportunities.

15/02/2019 Critics of Telstra's 1H19 earnings result ignore the positive signs on its crucial NBN-proofing and other measures to help secure long-term earnings, says Morningstar's Brian Han.

13/02/2019 Diversification is your best bet to minimise losses during a downturn rather than expecting an active equity fund to turn defensive, says Morningstar's Russ Kinnel.

12/02/2019 The US Federal Reserve’s pause on interest rate rises last week was a relief for equity markets and riskier types of credit, but investors should prepare for increases later in 2019, says Mellon’s head of multi-sector strategies.

08/02/2019 Commonwealth Bank delivered a "messy" and slightly disappointing result for 1H18 amid slowing loan growth and weaker house prices, but the long-term earnings outlook remain positive, says Morningstar’s David Ellis.

05/02/2019 UK equities look undervalued in all but the most extreme Brexit scenarios, says Morningstar Investment Management's Mark Preskett.

04/02/2019 We retrace some of the key milestones from Kenneth Hayne's banking royal commission, ahead of the final report's public release after 4pm today.

31/01/2019 The late Vanguard founder, Jack Bogle, was a committed believer in index investing and the Cost Matters Hypothesis, says Morningstar's Russ Kinnel.

30/01/2019 TPG's abandoning of its mobile network plans holds two powerful implications for the company and its competitors, particularly Telstra, says Morningstar's Brian Han.

29/01/2019 It's a full week of earnings, with Apple, Amazon, Facebook, and Microsoft all trading in 4-star range ahead of their reports.

25/01/2019 US stocks are still considered broadly expensive, but consumer staples is one area where lower valuations are creating opportunity, says Morningstar Investment Management’s Bryce Anderson.

23/01/2019 Minimising home bias within their portfolios should be a key focus for Australian investors in 2019, says Tim Murphy, director of manager research, Morningstar Australia.

22/01/2019 Netflix ended 2018 on a strong note, but its ongoing use of cash and increasing competition from the likes of NBC, Universal and Disney hurt its prospects for 2019.

21/01/2019 Chipmaker Intel and household name tech firm IBM are due to announce quarterly earnings this week, alongside Procter & Gamble, Johnson & Johnson and Starbucks.

17/01/2019 When all else is falling, alternative asset classes such as hedge funds, soft commodities, emerging market debt and banks loans can offer decent returns, says Morningstar's Brad Bugg.

15/01/2019 The inclusion of mainland China shares in more indexes including S&P Global, an expanding menu of active ETFs, and the potential for more ESG-focused funds are among trends investors can expect in 2019.

14/01/2019 Fixed income assets will be even more important to investors’ capital preservation strategies this year than last, but some sectors are safer than others, says John Likos.

11/01/2019 The challenge of creating a quality-focused share portfolio using only Aussie stocks is one of several reasons why a broader focus is important, says Morningstar Investment Management’s Peter Bull.

10/01/2019 The banking royal commission and other inquiries have shown product disclosure regulations alone are not enough to protect investors, especially from themselves, says The Chaser’s Julian Morrow.

09/01/2019 Disciplined investors always urge others to buy on the dips - but not all stock market falls create buying opportunities.

08/01/2019 The resumption of a US-China trade war and the Fed’s ability to stave off recession are the most important global themes for Australian investors this year, says Morningstar’s Peter Warnes.

07/01/2019 Drowning out the noise and creating personal policy statements are among Christine Benz's top tips for sticking to your strategy as the market downturn bites.

04/01/2019 Our US$200 fair value estimate for the iPhone maker is unchanged as stronger services and wearables revenue should offset China weakness.

24/12/2018 The banking royal commission, pronounced falls in global markets and continuing ETF tail-winds are among the stand-outs of 2018, say Morningstar experts.

21/12/2018 Record global debt alongside mixed signals from the Fed, and the link between Aussie housing, consumption and GDP will be next year’s big macro themes, says Morningstar’s Peter Warnes.

21/12/2018 Its new Sydney casino set for a 2021 open underpins Morningstar’s continued positivity on Crown, despite falling VIP gaming volumes and other challenges.

19/12/2018 Asian equities could lead an emerging market uptick in 2019, even after a tumultuous 2018 dominated by the US-China trade war and geo-politics.

18/12/2018 State Street Global Advisors' Kevin Anderson says 2019 will be volatile - but there will also be opportunities for investors who are ready to pivot.

17/12/2018 Knowing which Brexit scenarios are priced into equity, fixed income and currency markets is key, says James Foot, who sees value in the pound, and potential in short-term volatility.

13/12/2018 A German utility, Japanese electric vehicle play and US biotech are singled out as three global stocks to watch by UK fund manager Killik & Co.

12/12/2018 Geared funds can offer spectacular returns compared to the sharemarket, but they can equally plunge when things sour, warns Morningstar's Alex Prineas.

11/12/2018 Japanese financials and technology firms in Taiwan and Korea are among some of the most attractive opportunities on Morningstar Investment Management’s radar into 2019.

10/12/2018 Reducing risk in your investment portfolio doesn't have to mean de-railing your long-term plan, says Christine Benz.

07/12/2018 Italy's government is shaking up local politics, but even their anti-EU policies aren't necessarily a harbinger of doom for investors.

06/12/2018 The banking royal commission has forced a shift in the way boards and company executives interact, which will affect the entire listed corporate sector, says Mornignstar's David Ellis.

05/12/2018 Large-cap companies Transurban, Navitas and Spark are highlighted by the head of Lazard’s defensive income strategy, Aaron Binsted.

04/12/2018 Australia’s residential property downturn and banking inquiry have influenced this income-focused strategy’s portfolio in 2018, as have commercial property valuations.

03/12/2018 The upward rising markets of the past decade are over and investors should brace for a risky year ahead, says Psigma chief investment officer Tom Becket.

29/11/2018 Long-term care expenses in retirement are commonly overlooked, even among those who plan for the out-of-pocket ongoing costs, says Jean Young from Vanguard in the US.

27/11/2018 Exchange-traded funds have pros and cons depending on your investment style and other variables as you approach retirement, along with applications in the accumulation and withdrawal phases, explains State Street's Jonathan Shead.

26/11/2018 The way many investors think about emerging markets is incorrect – they’re not uniformly volatile, and over-exposure to individual sectors and stocks can be problematic, says Morningstar Investment Management’s Nimalan Govender.

23/11/2018 More investors are looking to small caps for higher returns, in sectors such as healthcare, dairy and data storage, but there are risks, says Morningstar's Ross Macmillan.

22/11/2018 The IPO of Coles, as it split from Wesfarmers earlier this week, leaves the grocery giant close to its fair value and now directly comparable with competitor Woolworths, says Morningstar’s Johannes Faul.

21/11/2018 Superannuation complexities, investment risk and regulatory uncertainty mean a shortfall in confidence is understandable in our current environment, says State Street’s Jonathan Shead.

20/11/2018 Morningstar looks at which companies Berkshire Hathaway bought and sold during a surprising third-quarter 2018.

19/11/2018 Morningstar's Adam Fleck guides us through the process his team uses to build a forecast, discount future cash flows, and incorporate a company's moat into their analyses.

16/11/2018 There are very good reasons for the popularity of listed investment vehicles, but some of these attributes also give rise to potential challenges, explains Morningstar’s Matthew Wilkinson.

15/11/2018 Saving for retirement is well catered-for within existing superannuation provisions, but the transition to pension mode isn’t as developed, says Vanguard’s Robin Bowerman.

14/11/2018 Morningstar's senior banks analyst David Ellis explains why he has cut his fair value estimates for the major Australian banks, even as they remain undervalued, and why Westpac navigated the royal commission “least-worst”.

13/11/2018 Changing tariffs and rising inflation in the US have different implications for individuals as investors and consumers, says Morningstar Investment Management’s Peter Bull, following on from his presentation at Morningstar Individual Investor Conference 2018.

12/11/2018 Investors are bracing for more volatility, but attendees at the Morningstar Individual Investor Conference in Sydney see pockets of opportunity in travel, mining and medical cannabis.

09/11/2018 As Australia’s equity market nears its peak and share buy-backs hit unsustainable levels, investors need to also be mindful of rising interest rates and government policy, says Morningstar's Peter Warnes.

08/11/2018 There are still considerable benefits when switching your SMSF to drawdown phase, despite the complexities and potential political changes ahead, says SMSF Association’s Peter Hogan.

06/11/2018 As the ASX hits its lowest levels in 12 months, reporter Emma Rapaport speaks to attendees at the Morningstar Individual Investor Conference in Sydney to get a sense of what's concerning them most.

05/11/2018 Rising rates in key global markets have boosted asset prices, magnifying the importance of good investment portfolio construction, says Janus Henderson’s Jay Sivapalan.

02/11/2018 Recent SMSF court cases in Queensland highlight the importance of keeping your documentation in line, says lawyer Shane Ellis.

01/11/2018 Andrew Clifford, CEO of Platinum Asset Management, outlines where in the world and in which sectors and companies he sees investment value – even in a global environment many regard as late-cycle.

31/10/2018 Market volatility effects various global sectors in different ways, and there is a crucial distinction investors must make between company cash flow and share price stability in this context, explains Magellan’s Vihari Ross.

30/10/2018 Google's parent company is an attractive option among global technology stocks, according to Morningstar US analyst Ali Mogharabi

29/10/2018 Mixed third-quarter results from Amazon don't detract from Morningstar's long-term positive assessment.

24/10/2018 The Vanguard founder says although there are some good uses for ETFS, he still sees lots of bad and poorly used products in the market.

23/10/2018 Vanguard founder Jack Bogle sees a place for some factor funds but thinks trying to trade between factors is a losing proposition.

22/10/2018 Jack Bogle says trying to time trades is a flawed decision, and investors should not try to beat the market.

19/10/2018 Morningstar analyst Johannes Faul examines Amazon's edge on delivery and outlines how Myer has priced in some challenges to emerge as an undervalued retail play.

18/10/2018 International subscribers boosted growth, but we still think the firm will have to spend heavily over time to fend off competition.

17/10/2018 Vanguard founder Jack Bogle explains the difference between long-term and speculative returns, and where he believes markets are headed over the next decade.

16/10/2018 Want to make money in emerging markets? Look for stocks that are uncorrelated to trade war fears and US central bank policy says T Rowe Price's Ernest Yeung.

12/10/2018 Morningstar analyst Gareth James explains why tech stocks are prone to volatility, citing WiseTech Global as an example, and examines the strategy behind the recent takeover bids for accounting software play MYOB and education business Navitas.

11/10/2018 The effects of the stock plunges in the US and Australia are scary but investors should avoid panicking and stay in it for the long haul, says regional director of equity research for Morningstar Australasia Adam Fleck.

11/10/2018 The shape of the yield curve indicates slower growth for late 2019, but we'd need to see a sharp deceleration in the US economy for it to enter into a recession in 2020, says Morningstar Australasia senior portfolio manager Brad Bugg.

11/10/2018 Colchester's silver-rated fund takes a rigorous approach to global government bonds and screens out any that aren't up to scratch, says Morningstar Australasia's associate director for fund research Tim Wong.

09/10/2018 State Street's Michele Hardeman tells Emma Wall how falling emerging market currencies have affected investor confidence.

05/10/2018 Despite providing more questions than answers, the banking inquiry's interim report nevertheless suggests corporate regulators will be more aggressive in the future, says Morningstar analyst Chanaka Gunasekera.

04/10/2018 Concerns about a trade war are justified, but investors should stay the course or they risk missing the recovery, says Aberdeen Standard's veteran Asia-watcher Hugh Young.

03/10/2018 Many factors can impact when you can retire, so targeting a specific date to stop working may not be an ideal strategy.

27/09/2018 Bonds in countries such as Turkey, Argentina and South Africa have been hit by a few fundamental factors, but the longer-term picture for the broader EM segment is more positive.

26/09/2018 Morningstar's regional director of equity research Adam Fleck explains the decision to start coverage of a2 Milk and how sales in China's infant formula market could boost growth.

25/09/2018 iShares' Rob Powell talks to Emma Wall about thematic investing and how megatrends are shaping global economies and stock markets.

24/09/2018 Schroders' global head of retirement discusses how investors approaching retirement can fill the retirement income gap, and why professional advice is so important.

20/09/2018 T. Rowe Price is excited by testing company ALS and its reinvestment in mining exploration, Star Entertainment's shrewd moves to get more traffic to the gaming floors and insurer IAG's premium rate increases across the board.

19/09/2018 T. Rowe Price's Australian equities team has bought into telecommunications for the first time in five years, and is more bullish than many on commodities.

18/09/2018 CSL and Boral distinguished themselves in their respective sectors of healthcare and materials during fiscal 2018, while mining companies rightly returned cash to shareholders, says Peter Warnes.

17/09/2018 This moated US-based commercial real estate data company should be on investors' watch-lists, says Morningstar's Michael Wong.

14/09/2018 A 10 per cent increase in dividend growth was the highlight of a strong reporting season, which was dominated by robust gains in the resources sector, but stagnant wage growth and energy costs cloud the outlook, says Peter Warnes.

13/09/2018 Australian consumer stocks Woolworths and Wesfarmers hold little "margin of safety" for investors as we head into fiscal 2019, explains Morningstar equity analyst, Johannes Faul.

12/09/2018 Currency volatility has rocked emerging market equity returns over the year, but ETF investors are staying the course, says Morningstar Asia director of ETF research Jackie Choy.

11/09/2018 We think the Chinese retail giant is one of the most undervalued consumer-focused stocks.

10/09/2018 As three of the big four increased mortgage rates, they fared surprisingly well in avoiding a prolonged public backlash, including Westpac, which is also subject to speculation of a wealth-division sell-off.

06/09/2018 Liquidity, transparency, and tax efficiency are hallmarks of ETFs, but Ben Johnson says some of these benefits can be oversold.

05/09/2018 Morningstar's Peter Bull likes companies with pricing power and niche products, and names that catch his eye include Microsoft, Colgate and luxury retailers like Louis Vuitton and Christian Dior.

04/09/2018 Telecoms and financials are Australia's most attractive sectors in terms of valuation, but investors should be wary, says Morningstar Investment Management Australia's head of equities.

03/09/2018 The technology sector looks the most pricey today while communications services appears to be the cheapest.

31/08/2018 Investors considering an active fixed income fund should be aware of their asset manager's risk levels versus skill and track record, according to a Morningstar US study.

29/08/2018 In our global climate of geopolitical crises, trade disputes and general uncertainty, a multi-asset approach to emerging market investing can be useful, says Morningstar UK's Dan Kemp.

28/08/2018 This European bank, UK oil major and established US software player still hold good investor value, says Franklin Templeton' s Peter Wilmshurst.

27/08/2018 Morningstar's Brian Han explains why corporate player Vocus faces a hard road ahead, and what a potential TPG-Vodafone merger could mean for the sector.

23/08/2018 Geopolitical turmoil and other international market movers play a part in this team's value-selection process, explains Franklin Templeton's Peter Wlimshurst.

21/08/2018 REA Group posted $279.9m in net profits for fiscal 2018, up 23 per cent on 2017, with still further room for growth, says Morningstar's Gareth James.