Introducing Kalkine’s ‘Global Big Money Report’
Kalkine presents the ‘Global Big Money Report’ to a varied range of individuals varied range of individuals (including affluent or High net worth individuals) looking to utilise their big money in a disciplined manner when it comes to equities. While there are many investment options and ideas available, individuals with big money may be inclined towards investing in high-quality mid-cap to blue-chip stocks with moderate risk appetite and a slightly medium to long-term investment horizon. Two factors that are generally considered by such a category of individuals include compounding through equities and capitalisation on emerging opportunities. Hence, a balance of a conservative and aggressive investing approach may play a role here.
More importantly, investment philosophy enlightens during the market mayhem when gimmicks around the stocks get faded away. The gung-ho ushered individuals should consider one trait that is to preserve their investments during uncertain times. Given this backdrop, Kalkine’s ‘Global Big Money Report’ aims to focus on businesses with sustainable returns and an enduring vision, as listed across markets in the US, Australia, Canada, New Zealand, and the UK. The enthralled philosophy to safeguard individuals takes the shape with crafted research consisting of stocks with stable business models and strong corporate governance. At the same time, looking at cyclicals or trending themes with stable performance becomes crucial.
Kalkine’s ‘Global Big Money Report’ is one of such products suitable for individuals with big money, including the High-Net-Worth individuals, where-in we appraise opportunities from the blend of defensive and diversified sectors. These stocks are covered as value or growth picks with some having attractive dividend yields and can help to steer the confidence amidst challenging times.
Value investing becomes an aorta of the common investing principle of ‘Margin of Safety’. Defensives may play out during volatile times, while opportunities around high-quality growth stocks may provide an impetus to the overall performance. The elite characteristics of products and services having mass appeal and long-lasting impact within sectors such as healthcare, communication services, consumer discretionary space, consumer staples, digital entertainment, etc. are also considered in our stock selection process.
Under a broad level scenario for investment rationale, Kalkine’s Global Big Money Report caters to the following aspects: -
Kalkine aims to provide guidance to individuals in form of research through deep stock selection, value or growth-driven strategy, quality dividend picks, defensive themes with the managed risk profile.
Diversification may play a critical role in managing Global Big Money Report’s strategic picks’ risk profile. Therefore, stable businesses with proven ROE generation capability, growing fundamentals, corporate governance, experienced management team, economic moat, innovative customer solutions, valuation upside potential, coupled with trending themes are primary ingredients of the stock selection process.
How has the Mid-cap and Large-cap Indices Performed Globally?
Kalkine’s Global Big Money Report primarily trails matured stocks with long-term standings on revenue generation and stable EPS growth.
The S&P/ASX Midcap 50 Index posted a growth of +28.11% in the past year as compared to the broader market ASX All Ordinaries Index performance of +22.57% and ASX Small Ordinaries Index Performance of 25.01%.
S&P/ASX 200 vs S&P/ASX Midcap 50 Index – One Year Return
Source: REFINITIV as on 28 July 2021
At a global level, S&P 500 Index, that is primarily considered as the best proxy for large-cap U.S. equities performance, delivered a whopping return of +17.18% year till date since 1st Jan’2021 in contrast to +11.67% posted by the Dow Jones Global Index (till July 28, 2021, REFINITIV).
Select Picks from Our Preferred Investment Zone
For Instance, Apple Inc. (NASDAQ: AAPL), a leader and the most valuable brand in consumer electronics delivered a ~54.80% return in the last one year. This was far higher than S&P 500 Index returns of ~+35.87% (Source: REFINITIV). Increasing smartphone penetration and growing millennials led the company to post strong ROE of 32.6% in the recent quarter ending June 2021 as compared to the Industry Median of 1.7%.
Another stock named Woolworths Group Ltd. (ASX: WOW) is one of the biggest brands in the Australian supermarkets and retail industry. The stock with a beta of 0.48 generated 1-year returns of ~+13.82%. With changing customer preferences and retail landscape, the stock demonstrated returns of +88.68% in the last five years as compared to ASX All Ordinaries Index returns of +35.71% (Source: REFINITIV). The stock had generated healthy ROE of 12.5% for 1HFY21 as compared to the Industry Median of 10.6%.
To Summarize, Kalkine’s ‘Global Big Money Report’ aims to provide actionable insights which are easy to comprehend in mid-cap to large-cap space. The report aims to cover stocks after prudent assessment of sectoral trends, global demand and supply scenarios, fundamental analysis, investment outlook, valuation potential, technical parameters, and associated risks, etc.
The report features investment avenues in high-quality stocks in the moderate risk profile for the medium-to-long-term horizon. The stocks are well diversified in the mid-cap and large-cap space.
The selection is spread out between defensive and growth sectors such as healthcare, consumer discretionary, digital entertainment, etc.
High-quality stocks with attractive yields, stable ROE, prudent management, and ESG compliance are being targeted.