Investment Matters

Company News

Australian Equities Portfolio

CML Group (positive impact)received a non-binding indicative proposal from Scottish Pacific Group Limited (another invoice financing company). The offer is for an all cash consideration of $0.60 per share, including a fully franked dividend of $0.03 per share. This price represents a 25% premium to the company’s last traded price of $0.48.

 

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QBE Insurance (neutral impact) is expecting higher claims from its North American Crop insurance business, after an unusually cool growing season and crop hail. Your Investment Team was aware of the potential for this. The weather also led to higher claims from some North American property insurance. As a result, the groups combined operating ratio (the ratio of the group’s expenses relative to net earned premiums – with a ratio below 100% indicating profitable underwriting) is expected to be at the top end of its guided range. Despite this he company has maintained strong price momentum, growing standalone the premium of standalone policies by an average of 7.5% in 3Q-2019 vs 4.7% in 1H-2019. Furthermore, investment returns have been stronger than expected are expected to be at the upper end of its 3.0% to 3.5% range. While FY-19 (QBE reports based on the calendar year) will be below expectations the group is anticipating a combined operating ratio of 93.5%-95.5% in 2020.

 

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Paladin Energy (positive impact) announced that it has received consent from the government of Malawi for the sale of the 85% interest in its Kayelekera mine. Proceeds from the sale of the mine will provide working capital for the company, providing a longer time frame for it to benefit from an anticipated recovery in uranium prices.

Alternatives Portfolio

Enlitic (positive impact) has announced a partnership with MLP Care, the largest private healthcare provider in Turkey. The partnership will see Enlitic’s software used to streamline radiology workflows across 31 hospitals operating under the Liv Hospital and Medical Park brands. The partnership will allow Enlitic to develop, train and validate its deep learning models on a large population base, with MLP Care assisting in securing regulatory approvals and managing the distribution of Enlitic’s AI products in the region.