SQM Research Ratings Update
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SQM Ratings Research Update - Monday 19th May 2014
Property Valuations
Research Reports
Discounted/Distressed Properties
Funds Research
The Count's 
Comments for the Week

It seems correlations are rising once again. Just like before 2008! Haaa, ha, ha, ha!

Ratings Table
To see the entire table of SQM Research's fund ratings, click HERE

(Please note: In order to view individual ratings reports you must be subscribed to SQM Research Ratings research. To subscribe, click HERE)
SQM Research's Annual

Yes, the last few months have simply flown by and it is already time for us to start preparing for our annual property seminar - SQM Research's Afternoon of Property! Last year's event was a great success, with many of the delegates expressing gratitude for the knowledge and value gained from the day.

Kicking off at lunch time this year, SQM Research along with some of the highest rated fund managers in each sector within property including Domestic and Global REITs, Infrastructure, Commercial property, Mortgage trusts and of course - residential property, will be examining and scrutinizing the current climate of real estate as well as discussing what’s in store for the future. 

With vast array of special guest speakers from each sector and of course – respected and trusted property analyst, Louis Christopher, SQM Research is again hosting an afternoon of what promises to be an enlightening insight for fund managers, advisers, real estate industry professionals and professional investors into our country’s most fascinating and emotional asset class, as well as a great networking opportunity.

Along with brief sessions from each guest speaker, SQM Research will hold Q and A’s for each session where by handpicked panelists from each sector will be present to answer in detail and provide their perspective on a range of questions from both Louis and the audience, making for a uniquely interactive, educational afternoon.

As part of the event, SQM Research will also be releasing the highly anticipated latest installment of â€œChristopher’s National Housing Boom and Bust Report”, with each registered delegate receiving one of the first copies as part of their registration.

If you are wondering whether or not this event is for you, here is a list of people who should definitely be there -

  • Financial Planners 
  • Fund Managers
  • Property Developers
  • Real estate agents
  • Real estate industry professionals
  • Savvy Investors

If you are wondering WHY you should attend, here are five reasons you shouldn't miss this -
  • Independent, trusted, valuable insight and information from experts across all divisions of real estate - you will receive first hand knowledge and pick the brains of fund managers from all property sectors that you will be able to pass onto your clients.
  • Networking and exposure - a great opportunity to rub shoulders with other industry professionals at a fully catered event, with a quick lunch to kick off beforehand, afternoon tea and networking drinks afterwards.
  • Residential real estate forecasts from one of the country's most respected property analysts - Louis Christopher - see where this boom is headed!
  •  CPD Points - last year 2.75 points were awarded to our Afternoon of Property - this year as we are extending the time of the event, we are expecting more.
  •  Highly Interactive - this is not a seminar where you will have to merely sit back passively through a million presentations; rather we have geared each session to be majority Q & A, where both Louis and delegates will have the opportunity to ask our handpicked panelists questions related to their sector.

Registrations are now open for this event and early bird rates are on offer - so get in soon to assure your place and capitalize on a 20% early bird discount!




Emerging Markets with Senior Investment Analyst - Leanne Truong

As tensions in Eastern Europe and Asia continue to mount, investors are once again questioning the role of Emerging Market in their portfolio.

2014 thus far has been a highly unstable year for the Emerging Markets, with the fight over Crimea elevating risks in Russia. Tensions are also running high closer to home, with the Thai military declaring a coup and claims over the South China Sea intensifying. However, it hasn't been all bad news for the Emerging Markets, with landslide election victories renewing optimism in India and South Africa.

MSCI Net Return (AUD) Indices – at 30 April 2014

Source: SQM Research, Bloomberg

As can be seen in the above chart, Emerging Markets have historically exhibited greater volatility than the developed markets. As such, the Emerging Markets are suited to investors willing to accept the added risk. Over the last 10-years, those who have taken on the risk have generally been rewarded, with the MSCI Emerging Markets and BRIC indices outperforming the developed markets. This is of course with the exception of Australia, with the MSCI Australia NR (AUD) closely tracking the MSCI Emerging Markets NR (AUD) up until 31 March 2012, before strongly outperforming.

Interestingly, many investors are exposed to the Emerging Markets to seek diversification for their portfolios. However, a correlation analysis since January 2001, shows monthly returns in Australia being highly correlated to the Emerging Markets. Nevertheless, these correlations have been diverging post 2012, with volatility in the Emerging Markets falling to all-time lows in 2013 and 2014 despite significant political tensions in the regions. Moreover, correlations are rising amongst the developed markets, with monthly correlations over the three-years to April 2014 rising back to Global Financial Crisis levels (three-year to April 2012) amongst the United States, Europe and World MSCI Indices.

Correlation Coefficient – Monthly Returns from 31 January 2001 to 30 April 2014

Source: SQM Research, Bloomberg

In Australia, Exchange Traded Funds (ETFs) are the most popular way to access the Emerging Markets. There are also actively managed unlisted funds that purely focus on the Emerging Markets. The best Emerging Market Active Managers are those who thoroughly analyse and track regulatory, legal and political risk throughout their investment process and place a strong emphasis on risk-adjusted returns.

Emerging Market exposures should be used to complement an investor’s existing portfolio and should not be used on its own to generate returns. In addition to this, as discussed above, Emerging Market exposures are best suited to investors willing to accept a higher level of risk. 


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