Executive Summary

SMU Investment is a fund management company, which provides investment services to prospective investors. We have recently been appointed to act as a fund manager to establish and manage an investment fund of $100milion.

This report will start from constructing an proper investment policy statement. Our clients are in age 60 to 75 who are retiring very soon or already retired. So we focus on a less long term investment like 2 years and we are aims to preserve our capital. They are in spending and gifting phases and they cannot absorb any investment losses. Therefore the risk tolerance should be low to moderate. We will mainly invested in risk free assets and also small amount of risky securities to against inflation and unexpected expenses. In addition, due to the uncertainty about future, 5% fund will be reserved in cash to maintain the liquidity of assets. Our overall portfolio strategy is passive coupled with a capital preservation approach.

Then we analyze data like standard deviation, coefficient of variance and arithmetic mean to construct an optimal portfolio. Government bonds will take the majority proportion in our portfolio to reduce risk.

Lastly, we evaluate the most suitable portfolio by calculate sharp and Treynor ratios. These ratios helps to monitor whether the target return has been met. However, it should be noticed that any uncertainties will occur before or during investment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Investment Policy Statement

 

1.1 Broad investment objectives

 

As an investor, we assuming our customers are in range 60 to 75 years old who are in spending and gifting phase. For these phase customers, they will retire very soon or already retired and have some savings for daily demands. These people prefer low risk because their earning power is decline and soon be ending, they are not able to absorb any investment losses (Brown, Reilly & Strong, 2012). Therefore, we are concentrated on capital preservation. According to (Brown et al., 2012), they still need some grow risky investments for purchasing power protection but their overall portfolio is less risky than consolidation phase. Thus, the major objective is capital preservation. In other words, the return needs to be higher than inflation.

 

1.2 Target return

 

Table 1

 

The target return is 8.83% annually, when take inflation into account, our estimated real return is 5.96%.

 

1.3 Level of risk in the proposed portfolio and risk management

 

Our target clients are in spending and gifting phase and they are planning retire or already retired, therefore they cannot bear any investment loss in capital. Their investment is for earn extra money for a better life such as travel and change a new house. Since our portfolio is focus on capital preservation, the risk our clients are willing to bear is low to moderate. Our aim is to diversify unsystematic risk or reduce the risk as much as possible (Gitman et al, 2008). In other words, in order to achieve the target return we have to minimize the level of risk and try to sit on the low risk point on efficient frontier. Overall, our target is making profit based on preserve capital. Firstly we need to keep the intrinsic capital and the minimum return has to be able to against inflation. Then we suggest a minor amount risky investment to make profit for a better life environment and against inflation and keep liquidity of assets.

 

1.4 Investment constraints

 

Investment constraints are the factors that restrict or limit the investment options available to an investor. (Carmen, 2014).

 

1.4.1 Time horizon

 

“Time horizon typically refers to the time at which an investment objective must be met.” (Carmen, 2014). Our clients are from 60 to 75 years old; the investment time horizon needs to be shorter, around two years. Investors need more liquid and less risky investments, as they are harder to overcome the losses in terms of the investors between 25 to 30 years old. (Brown et al., 2012). That is the investors need more short-term investment and less long-term investment. Long-term investment still is needed because they still need inflation protection.

 

1.4.2 Liquidity

 

“Liquidity is associated with cash outflows expected and required at specific time in the future and are generally in excess of income available.”（Gopalan, Kadan & Pevzner, 2012). In terms of our clients who are in spending and gifting phase, they have a strong need for liquidity. Although they may receive regular checks from their pension and society, they still prefer some of the portfolio in liquid securities to meet unexpected expense, bills or special needs such as trips. (Brown et al., 2012). Therefor, investors need more liquidity investments.

 

1.4.3 Taxes

 

Taxes constraint depends on when, how and if returns of different types are taxed.” (Carmen, 2014). Income is taxed when it is received and capital gains or losses are taxed only when an asset is sold. (Brown et al., 2012). Such as dividends, capital gain and interest will be taxed. Thus, it is important for us to minimize taxes as tax has a big effect on return, but in this assignment, tax will not be considered.

 

1.4.4 Legal and regulatory factors

 

These constraints usually specify which asset classes are not permitted for investments or dictate any limitations on asset allocations to certain investment classes. (Carmen, 2014). As a fund manager, legal knowledge is needed. It is our responsibility to give the investors legally advices to ensure the plan is implemented.

 

1.4.5 Unique circumstances

 

These constraints are mostly internally generated and signify investor’s special concerns. (Carmen, 2014). Some investors may want to exclude certain investments from their portfolio solely on the basis of personal preference or for social consciousness reasons. (Brown et al., 2012). These constraints are different to each investor. Each investor has to decide on and communicate with fund manager about his or hers special needs.

 

1.5 Investment guidelines

 

Table 2: ideal asset allocation for the portfolio

	Weights (%)
Stocks: excluding property, investment companies, international investment	10-15
Stocks: property	5-10
Stocks: investment companies	15-20
Stocks: international investments	5-10
Bonds: risk free government securities	60-70
Cash	5-10
Total	100

 

We develop policy statement in order to provide guidance for overall investment strategy. Therefore, the weights of each invest funds or asset class should be included in the policy statement. Consider our aim, we will avoid high-risk securities and at least preserve the capital. Based on this purpose, we allocate our assets as above. 60% of funds are taken by risk free government securities. This helps investors to balance like 15% of potential risk or losses will occurs in risky stocks. The remaining 5% on cash is prepared in case of unexpected situation.

 

1.6 Investment strategy

 

Now the stock market is not very stable and it is more risky compared to the government securities. According to clients’ needs and the whole economic, the investment strategy should be that invest less in stock market and invest more in fixed securities as fixed securities are less risky and satisfied clients’ needs. The passive strategy is referred as to buy and hold that is the simplest fixed-income portfolio. (Brown et al., 2012). The idea of this strategy is to minimize investing fees and to avoid the adverse consequences of failing to correctly anticipate the future. (Rompotis， 2009)). It is buy a portfolio of bonds and hold them till maturity date, which can lower transaction cost as well as risks. The purpose to invest stocks is to give investors a higher return to satisfy their unexpected expense and increase capital.

Overall, this strategy can generate a balanced capital gain and keep capital not loss as well as lower cost and risk, which is more suitable for our clients.

 

 

 

1.7 Portfolio monitoring and review process

 

A portfolio needs to be reviewed to make sure that it is achieving your desired results within acceptable risk and other constraints such as cash flow requirements. (Haselmann & Herwartz, 2008)). There are some elements need to be considered. Firstly, we need to review the results. To check the results to know the investment performance and how actual returns look relative to level of risks taken. (Haselmann & Herwartz, 2008). Secondly, we need to measure the risks by measuring standard deviation in terms of the return we earned or the losses we made. The higher standard deviation, the higher risk. Thirdly, investment objectives need to be revisited, which is capital preservation. We need to ensure the results we get are for capital preservation. Fourthly, each holding need to be reviewed to show how the holding contributed to overall result, that is whether the holding add value or decline value of portfolio. Fifthly, we need to re-assess our tactics. That is to review the market, how is the market developing and base on the market to make buying decisions. Sixthly, it is revisit our strategy. We need to check the expected return and the actual return we gained. As we realize the risk and return situations we are in, to inspect the mismatching between market environment and our strategy, in order to make more suitable strategy. Finally, we need to retool our portfolio. We will find area that we can improve after reviewing. Therefore, we can reset the assets holding based on the investment objectives and benched mark return and level of risk.

 

2. Methodological Issues

 

2.1 Arithmetic Mean, Standard Deviation, Coefficient of Variation and Beta of Assets 

 

Table 3

Company Code	Arithmetic Mean	Standard Deviation	Coefficient of Variance	Beta
ANN	0.002299	0.03261342	13.3731784	0.47104624
AMC	0.002414	0.035427	13.78941	0.615655
ARG	0.00032	0.028288	87.61036	0.66222
ALL	0.000605	0.055432	90.24056	0.893532
AMP	-0.00044	0.040966	-93.3669	1.086731
CTX	0.002686	0.051754	17.97941	1.204836
CAA	-0.00323	0.101238	-34.0294	0.575917
CSL	0.002847	0.034823	11.36448	0.516427
GNC	0.001151	0.048268	40.70552	0.697752
IAG	0.001354	0.033628	23.99201	0.704904
LEI	-0.00105	0.056806	-55.5531	1.495134
NAB	0.000502	0.039698	78.10117	1.113193
NCM	0.017544	0.408918	14.46101	1.285298
PMC	0.000883	0.040622	44.95302	0.345435
RHC	0.004935	0.032973	5.876747	0.446647
RIO	-0.00076	0.05596	-75.0186	1.363534
SGP	-0.00044	0.049918	-114.225	1.108437
WES	0.00184	0.036444	18.89608	0.823078
WPL	-6.6E-05	0.044472	-679.53	1.164927
WOW	-0.00016	0.027399	-175.41	0.553817

 

Arithmetic mean and Standard Deviation

Because we are aim to capital preservation, we prefer stocks with lower risk (standard deviation) but higher return (arithmetic mean). According to the table above, Woolworths has the lowest risk as standard deviation is 0.027399 but its return is negative. Beside Woolworths, ARG has the lowest risk (0.028288) with a low return which is 0.00032. On the contrary, NCM has the highest return 0.017544 but with the highest risk.

 

Coefficient of Variation

Coefficient of variation shows the relationship between expected return and standard deviation. It refers to the volatility per unit return. Lower CV in portfolio would be acceptable because of investor’s risk averse natural. It means that a stock with lower CV equals to a better risk-return trade off. Under this scenario, RHC has the lowest CV which is 5.876747, it means RHC has lower relative variability.

 

Beta

Beta measures the systematic risk of securities and its sensitivity for market. According to Zaimovic (2012), higher beta results in a higher risk and a higher return. From the table above, LEI has the highest beta 1.495134 while PMC with the lowest beta which is 0.345435.

 

2.2 Opinion on asset

 

Our objective is capital preservation, thus we prefer low risk investment. In this case, we decide invest government bonds as our major investment which occupies 60% in our portfolio. Then we need to invest some risky stocks to protect capital against inflation. The portfolio also requires 5% cash to keep liquidity and for the purpose of unexpected expenses.

 

2.3 Portfolio construction

 

According to Markowitz (1952), portfolio selection should based on maximize expected return in a given level of risk. In addition, investment managers should diversify the unsystematic risk and systematic risk as much as possible to reduce the potential risk in return. Moreover, systematic risk in domestic market can be largely offset by spending money in foreign market. The portfolio theory is to reduce the variance of securities and assumes investors are rational and sensible in an efficient market. Based on the theory, a portfolio sits on the upper edge of efficient frontier represents the lowest risk at a given return. For those lie along the efficient frontier represents the best-expected return at a given risk.

 

Excel solver helps us generate weight of each asset in portfolio automatically to meet our 8.83% target return.

这里有一个表

 

2.4 Asset allocation

 

As our investment objective is capital preservation, we choose to investment 95% of risk free assets and stocks with annually 7.5% target return. Moreover, investor need 5% cash for liquidity needs. Running the solver with annually target return 7%. The follow table shows our asset allocation with 95 million dollars which is without cash.

 

 

 

 

 

 

 

 

 

Table 4 Asset allocation table

Share Name	Weights (W)	Dollar amount	Expected Return (ER)	ER * W	Variance (V)	(W^2)*V	Beta	Weighted Beta	Standard deviation
AMC	0.00572583	543953.9449	0.002414365	1.38242E-05	0.001255098	4.11486E-08	0.615655041	0.003525137	0.0354
CSL	0.01563446	1485273.757	0.002847283	4.45157E-05	0.001212623	2.96409E-07	0.516426981	0.008074057	0.0348
NCM	0.00317213	301352.416	0.017544198	5.56525E-05	0.167214227	1.68258E-06	1.285298323	0.004077134	0.4089
RHC	0.12791911	12152315.16	0.00493532	0.000631322	0.001087222	1.77905E-05	0.446646724	0.05713465	0.0330
WES	0.00283031	268879.5259	0.001839668	5.20683E-06	0.001328195	1.06397E-08	0.823078324	0.002329567	0.0364
Risk Free	0.84471816	80248225.36	0.000705122	0.000595629	6.23655E-08	4.45008E-08	0	0	0.0002937
Total	1	95000000		0.00134615		1.98658E-05
Portfolio beta = 0.075140546

 

For our portfolio, it includes 5% cash. The table below shows the whole asset allocation that is with cash.

 

Table 5

 

	Percentage (%)	Dollar (million)
Cash	5	5
Stocks	14.75	14.75
Risk free asset	80.25	80.25
Total	100	100

 

2.5 Portfolio management

 

An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with intention of long-term appreciation and limited maintenance. (Fuller, Han & Tung, 2010). Passive strategy is been used in our portfolio management. Based on the data, market now is not very stable. In this case, we need to choose the assets with beta between 0 and 1, which the market do not has much influence on the asset. So, NCM need to be sold as its beta is 1.285 which means NCM is sensitive when market changes. This is for keeping capital preservation.

 

2.6 Portfolio limitation

 

There are several limitations in this portfolio, we mainly discuss three limitations here. First of all, in our plan, we invest in international stocks but actually we do not invest in this. Actual is mismatching with plan. The portfolio is not fully diversified. Secondly, we only choose 20 stocks from the market that contains thousands stocks. The sample in our portfolio is not enough to cover the whole market. Finally, the data we used base on the past, which can only represent the past trend and cannot forecast future. It can only show the trend about future.

 

3. Performance Evaluation

3.1 Risky asset- shares

 

Table 6

Share names	Weight (W)		Dollar amount ($)	Opening price ($)	Share numbers
AMC	0.57256%	$ 95,000,000.00	543953.945	6.82	79758
CSL	1.5634%	$ 95,000,000.00	1485273.76	35.49	41850
NCM	0.3172%	$ 95,000,000.00	301352.416	37.01	8142
RHC	12.7919%	$ 95,000,000.00	12152315.2	10.9	1114891
WES	0.283%	$ 95,000,000.00	268879.526	24.68	10894
	15.52806%

 

Table 7

Share names	Beginning value	Closing price（$）	Ending value ($)	Holding period return	Holding period yield
AMC	543953.945	12.95	1032866.10	1.89881167	0.89881167
CSL	1485273.76	90.50	3787425.00	2.54998446	1.54998446
NCM	301352.416	11.40	92818.80	0.30800749	-0.6919925
RHC	12152315.2	59.59	66436354.69	5.46697099	4.46697099
WES	268879.526	38.97	424539.18	1.5789197	0.5789197
Total	14751774.85		71774003.77	11.8026943	6.8026943

3.2 Risk free asset

 

Table 8

Bond index	Weight	Beginning amount	Days	Closing value	HPR
5.250	0.84471816	80248225.2	2818	119124528.30	0.484450628

 

HPY= HPF – 1= 1.484450628 -1 = 0.484450628

 

3.3 Cash

 

Table 9

	Weight	Beginning amount ($)	Interest rate	Days	Interest ($)	Closing amount
Cash	5%	5,000,000.00	3.50%	2818	1,351,095.89	6,351,095.89

 

Cash interest= principal amount * interest rate * (days/ 365)

Holding period return = ending value/ beginning value

=6,351,095.89 / 5,000,000

= 1.270219

Holding period yield = Holding period return – 1

= 1. 270219 – 1

= 0.270219

 

 

 

 

 

Portfolio return

 

Table 10

Beginning amount	Closing amount	Return	HPR	AHPR	HPY
100,000,000.00	197,249,627.96	97249627.69	1.9724962769	1.0919728	0.9724962769

 

Closing amount = risky shares closing value+ cash closing value + risk free assets closing value

 

3.4 S&P/ASX200 Index

 

Table 11

S&P/ASX200 Index	Beginning value	Closing value	HPR	HPY	AHPY
	6306.8	5170.50	0.8198293905	-0.1801706095	0.9745970188

 

AHPY = 0.8198293905^{1／(2818/365)}

        = 0.9745970188

 

3.5 Analysis portfolio

Portfolio Return	Beta	Standard Deviation	Sharp Ratio	Rank	Treynor Ratio	Rank
1: 7%	0.07514055	0.004761	0.296714	1	0.0971141	3
2: 7.5%	0.08636045	0.005474	0.295569	3	0.0971258	2
3: 8.83%	0.11604452	0.007373	0.295673	2	0.0970522	4
4: 9.3%	0.12654111	0.008044	0.295565	4	0.0971334	1

 

We need to determine both risk and return when analyze a portfolio, in this case sharp ratio and Treynor ratio can be used. Sharp ratio measures the portfolio’s return according to its risk, Haselmann and Herwarz (2008) states that the higher the sharp ratio, the better the portfolio performance. Therefore portfolio 1 is the best performance one. Treynor ratio reflect the excess return for the assets when increase risk per unit (Scholz & Wilkens, 2005). It focuses on the risk can not be diversified. Since the Treynor ratio is high, it implies that portfolio number 4 will results in an excess return when level of risk increase.

 

 

 

 

 

 

 

 

 

Reference List

Brown, K., Reily, F. K., Strong, R. (2012). BFF3121 Investment and Portfolio Management (1^st ed.). Australia: Cengage Learning.

Carmen, B. (2014). GLOBALIZARTION AND THE EVOLUTION OF THE GLOBAL FINANCIAL SYSTEM IN THE CURRENT FINANCIAL CRISIS. Annals of the University of Oradea, Economic Science Series, 23(1), 8.

Fuller, R. J., Han, B. & Tung, Y. (2010). Thinking about indices and “Passive” versus

Active management. The Journal of Portfolio Management, 36, 35-47

Gitman, L.J., Joehnl. M.D., Juchau, R.H., Wheldon, B.J. and Wright S.J. (2004).       Fundamentals of Investing, 2^nd Australian Edition. French Forrest, NSW: Pearson Education.

Haselmann, R., & Herwartz, H. (2008). Portfolio performance and the Euro:

Prospects for new potential EMU members. Journal of International Money &

Finance, 27(2), 17.

Markowitz, H. M. (1952). Portfolio selection. The Journal of Finance, 7, 77-91.

Zaimovic, A. (2012). Systematic risk assessment using ols method- The case of the

capital market of bosnia and herzegovina. Journal of Economics and Business, X,

13-23.

Gopalan, R., Kadan, O. & Pevzner, M. (2012). Asset liquidity and stock liquidity.

Journal of Financial and Quantitative Analysis, 47, 333-364.

Rompotis, G. (2009). Active vs. Passive management: New evidence from exchange traded funds. Journal of Economic Literature, 1-18.

 

Appendix

 

Table 1

 

Table 2

ideal asset allocation for the portfolio

	Weights (%)
Stocks: excluding property, investment companies, international investment	10-15
Stocks: property	5-10
Stocks: investment companies	15-20
Stocks: international investments	5-10
Bonds: risk free government securities	60-70
Cash	5-10
Total	100

 

Table 3

Company Code	Arithmetic Mean	Standard Deviation	Coefficient of Variance	Beta
ANN	0.002299	0.03261342	13.3731784	0.47104624
AMC	0.002414	0.035427	13.78941	0.615655
ARG	0.00032	0.028288	87.61036	0.66222
ALL	0.000605	0.055432	90.24056	0.893532
AMP	-0.00044	0.040966	-93.3669	1.086731
CTX	0.002686	0.051754	17.97941	1.204836
CAA	-0.00323	0.101238	-34.0294	0.575917
CSL	0.002847	0.034823	11.36448	0.516427
GNC	0.001151	0.048268	40.70552	0.697752
IAG	0.001354	0.033628	23.99201	0.704904
LEI	-0.00105	0.056806	-55.5531	1.495134
NAB	0.000502	0.039698	78.10117	1.113193
NCM	0.017544	0.408918	14.46101	1.285298
PMC	0.000883	0.040622	44.95302	0.345435
RHC	0.004935	0.032973	5.876747	0.446647
RIO	-0.00076	0.05596	-75.0186	1.363534
SGP	-0.00044	0.049918	-114.225	1.108437
WES	0.00184	0.036444	18.89608	0.823078
WPL	-6.6E-05	0.044472	-679.53	1.164927
WOW	-0.00016	0.027399	-175.41	0.553817

 

Table 4

Share Names	Weights (W)	Dollar amount	Expected Return (ER)	ER * W	Variance (V)	(W^2)*V	beta
AMC	0.00572583	543953.9449	0.002414365	1.38242E-05	0.001255098	4.11486E-08	0.615655041	0.003525137
CSL	0.01563446	1485273.757	0.002847283	4.45157E-05	0.001212623	2.96409E-07	0.516426981	0.008074057
NCM	0.00317213	301352.416	0.017544198	5.56525E-05	0.167214227	1.68258E-06	1.285298323	0.004077134
RHC	0.12791911	12152315.16	0.00493532	0.000631322	0.001087222	1.77905E-05	0.446646724	0.05713465
WES	0.00283031	268879.5259	0.001839668	5.20683E-06	0.001328195	1.06397E-08	0.823078324	0.002329567
Risk Free	0.84471816	80248225.36	0.000705122	0.000595629	6.23655E-08	4.45008E-08	0
Total	1	95000000		0.00134615		1.98658E-05
Portfolio beta = 0.075140546

 

Table 5

	Percentage (%)	Dollar (million)
Cash	5	5
Stocks	14.75	14.75
Risk free asset	80.25	80.25
Total	100	100

 

Table 6

Share names	Weight (W)		Dollar amount ($)	Opening price ($)	Share numbers
AMC	0.57256%	$ 95,000,000.00	543953.945	6.82	79758
CSL	1.5634%	$ 95,000,000.00	1485273.76	35.49	41850
NCM	0.3172%	$ 95,000,000.00	301352.416	37.01	8142
RHC	12.7919%	$ 95,000,000.00	12152315.2	10.9	1114891
WES	0.283%	$ 95,000,000.00	268879.526	24.68	10894
	15.52806%

 

 

 

 

 

Company Information

Ansell Limited (ANN)

Industrial sector: Health Care Equipment & Services

Ansell is a global leader in protection solutions. Ansell designs, develops and manufactures a wide range of hand and arm protection solutions, clothing and condoms. Industrial workers, healthcare professionals and patients, and consumers around the world invariably associate Ansell with premium quality, optimal protection and superior comfort. The principle activities of the entities in the group involve the development, manufacturing and sourcing, distribution and sale of gloves and protective products in the Professional Healthcare, Occupational Healthcare and Consumer Healthcare markets.

 

Amcor (AMC)

Industrial sector: Materials

Amcor is a global leader in responsible global packaging solutions, supplying a broad range of plastic (rigid & flexible), fibre, metal and glass packaging products and packaging related services. We have annual sales of approximately A$12.2 billion, generated from more than 300 sites across 43 countries.

 

ARGO Investments (ARG)

Industrial sector: Diversified Financials

ARG is the Investment in listed securities which is a leading Australian investment company listed on the Australian Securities Exchange with a diverse portfolio of Australian shares and securities. ARG have over 68,000 shareholders who are attracted by our reputation for providing capital growth, a regular income and protection of their savings.

Argo shares allow individual investors, companies, trusts and superannuation funds to invest in a professionally managed investment with a diversified portfolio of Australian shares at a competitive cost.

 

Ansell Limited (ALL)

Health Care Equipment & Services

The principle activities of the entities in the group involve the development, manufacturing and sourcing, distribution and sale of gloves and protective products in the Professional Healthcare, Occupational Healthcare and Consumer Healthcare markets. (ASX)

 

Australian Mutual Provident Limited (AMP)

Industrial sector: Insurance

AMP Limited is an insurance company that based in Australia but operates mainly in both Australia and New Zealand. They are also the leading retailer and corporate superannuation provider as it has about $124 billion in its assets under management. AMP has three main business units which areAMP Financial Services, AMP Capital and AMP SMSF.

 

Caltex Australia( CTX)

As then energy company, Caltex is Australia’s leading transport fuel supplier and convenience retailer and the only integrated oil refining and marketing company listed on the Australian Securities Exchange. Our business value chain incorporates operational excellence throughout purchase, refining, distribution, and marketing of petroleum products and the operation of convenience stores.

 

Capral Limited(CAA)

Capral linited is the company that relate to  matrial  Extruding, finishing and distribution of aluminium products.

 

Commonwealth Serm Laborators(CSL)

SL Ltd is a group company that focus on medical and human health with more than 90 years experience in the development and manufacture of vaccines and plasma protein biotherapies

 

Graincorp Limited (GNC)

GNC group provides food beverage and tobacoo. Provision of services to the grain industry. The CSL Group has a combined heritage of outstanding contribution to medicine and human health with more than 90 years’ experience in the development and manufacture of vaccines and plasma protein biotherapies.

With major facilities in Australia, Germany, Switzerland and the US, CSL has over 10,000 employees working in 27 countries.

 

Insurance Australia Group Limited( IAG)

Provider of general insurance, including full range of personal and commercial insurance products. IAG underwrites around $9 billion of insurance premiums each year and employs over 13,000 people. They have been assigned a ‘Very Strong’ Insurer Financial Strength Rating of ‘AA-’ by Standard & Poor’s for our key wholly-owned insurance companies. IAG provides general insurance, including full range of personal and commercial insurance products.

 

Leighton Holdings (LEI)

Leighton Holdings Limited is the parent company of Australia’s largest project development and contracting group. The Groups companies provide construction, mining and operation and maintenance services to the infrastructure, resources and property markets. The Group is the world’s largest contract miner and its companies are active in Australia, Asia, Africa and the Gulf region.

 

 

National Australia Bank (NAB)

National Australia Bank Group (the Group) is a financial services organisation with over 12,000,000 customers and 50,000 people, operating more than 1,750 stores and Service Centres globally. Their major financial services franchises in Australia are complemented by businesses in New Zealand, Asia, the United Kingdom and the United States. Providing Banking, financial and related services.

 

Newcrest Mining( NCM)

Newcrest Mining Limited is gold and copper producer with its main operations in Australia and Indonesia. Newcrest operates mines in four countries, and has a global workforce exceeding 19,000. It is the largest gold producer on the Australian Stock Exchange and one of the world’s top five gold mining companies by reserves and market capitalisation.

 

Platinum Capital (PMC)

PMC is a fund management company that is based in Australia as they specialise in investing international equities. The investment manager is Platinum Asset management and it holds a portfolio of international funds and securities. Currently, they are managing in surplus of $14 billion and out of that amount, 14% of it consists of investors in Europe, Asia, America and New Zealand. Their focus is to achieve high returns for their investors.

 

Ramsay Health Care (RHC)

Ramsay Health Care is a grown global hospital group that operates 117 hospitals and day surgery across Australia, United Kingdom, Indonesia and France. It is respected in health care industry for quality operation and has excellent record of hospital management and patient care

 

Rio Tinto (RIO)

Rio Tinto Limited produces copper, gold, iron ore, coal, alumnus, borates, titanium dioxide and other minerals and metals. Rio Tinto focus is on finding, mining and processing the Earth’s mineral resources in order to maximise value for our shareholders.

 

Stockland Corporation Limited (SGP)

Stockland is one of the largest diversified property groups in Australia. Stockland owns, manages and develops a range of assets including shopping centres, office and industrial assets, residential communities and retirement villages.

 

Wesfarmers Limited (WES)

From its origins in 1914 as a Western Australian farmers’ cooperative, Wesfarmers has grown into one of Australia’s largest listed companies with headquarters in Western Australia, its diverse business operations cover: supermarkets, department stores, home improvement and office supplies; coal production and export; chemicals, energy and fertilisers; and industrial and safety products.

 

Woodside petroleum Limited(WPL)

Woodside Petroleum Limited is operating on hydrocarbon exploration, development, production, transportation and marketing. It has exploration and development of gas, oil and condensate reserves.

 

Woolworths (WOW)

Woolworths is an Australian company that was founded in 1924 in Sydney. They are specialized in Food, general merchandise and specialty retailing through chain store operations.