Stock Market tips for Australia or any market under consideration depend on two factors, firstly, how much money one would like to invest in the market and secondly whether you will be able to decide on which shares to invest in. Setting up your investment goals and choosing what to buy and sell, are important considerations while investing in the stock markets given your risk appetite and also taking gains or losses. This goes well for an investor more interested in steady income over the years. While Royal Commission may have had a bad cycle on banks for income investors with earlier market darlings like Telstra also on a rollercoaster ride, a specific financial domain that still managed to see few stars has been the fund management one. Two Stock Market Tips for Australia in the fund management sector have been discussed below:
Macquarie Group Limited (ASX: MQG) has recently announced that it will lift the variable rate in terms of mortgage, which made the share plunge a bit. In last one year, the stock has been otherwise up 40%. The group witnessed a strong 1H18 result with 3% rise in operating profit before income tax and 56% rise in dividend per ordinary share. There has been a Macquarie notice of 2018 Annual general meeting lodged on June 15, 2018 on ASX which states that Macquarie will prior to the AGM announce to the market the number of RSUs (restricted stock units) to be allocated and the acquisition price for the allocation to the CEO. The number of ordinary shares on issue as at June 30, 2018 remained at 340,382 738, as Macquarie Group Limited (ASX: MQG) did not issue any new fully paid ordinary shares during June 2018. The acquisition of Macquarie ordinary shares required for the 2018 profit share and promotion awards under the Macquarie Group Employee Retained Equity Plan (MEREP Awards) has been completed, as announced. A total of approximately $A454 million of Macquarie ordinary shares were purchased: $A361 million off market under arrangements announced to the market on 4 May 2018 and $A93 million on market. The number of 2018 MEREP Awards staff received will be determined by the shares which were acquired at a weighted average purchase price of $A113.76 per share.
Macquarie traded at a market price of $123.01 at market open on July 16, 2018 with a daily price change of $0.410 or 0.334% in terms of percentage on July 13, 2018. The stock is trading near its 52-week high and looks touch expensive when viewed under the lens of stock market tips for Australia.
Another player in the segment but at a lower price is Magellan Financial Group Limited (ASX: MFG) that lately experienced net inflows of $218 million, which included net institutional inflows of $214 million and net retail inflows of $4 million. Distributions of approximately $755 million in July will be paid by Magellan which will be reflected in the FUM figures. Estimated performance fees of approximately $40 million for the year ended June 30, 2018 is entitled to Magellan.
Magellan Financial has recently announced for two acquisitions which will strengthen and diversify its retail fund management business domestically in Australia and add significant focus to activities of institutional distribution in North America. The total amount payable in respect to the acquisitions comprises approximately 4.5 million in shares and US$15 million in cash.
It is expected that Magellan will release its financial performance update on August 9, 2018 as set by the company. Magellan’s share traded at a market price of $24.48 on market open on July 16, 2018, and has seen a daily price change of $0.300 and 1.238% in terms of percentage on July 13, 2018. This looks to be a long-term stock market tip for Australia in the segment being discussed here.
