John Mitchell, Managing Director and founder of Mitchell Asset Management, one of Australia’s leading independent financial advisory and fund management firms, has 25 years experience assisting individuals, investors and businesses navigate the challenges of investing and residing in Australia.
Following on from successive senior roles that include Macquarie Bank, ANZ and Merrill Lynch, blending his experience in Capital Markets, Wealth Management and Investment Banking to create Mitchell Asset Management (MAM), a unique Australian Wealth Management firm that draws on its staffs experience to create innovative solutions in a very private way.
The plunge in the price of key commodities; from iron ore to oil; has shaken faith in the resources sector, which is on track for losses of 13% per cent this year, the worst since 2011.
Some experts say there could be further woes to come, arguing analysts are too optimistic about the outlook for commodity prices and that earnings forecasts beyond the 2014-15 year count on a recovery in traded prices.
But as stocks slide, others are convinced signs of value are emerging.
It requires a deeper understanding of the Chinese pension market to fully comprehend the significance of the AMP's acquisition of a 20 per cent stake in China Life Pension Company. On a couple of measures it looks like a small scale deal. The $240 million cost of that stake is equal to about 1.5 per cent of AMP's market capitalisation. Also, the China Life Pension Companys asset under management are smaller than the AMP corporate super business at home.
But compare the growth prospects of the Australian operations with those in China and it is obvious chief executive Craig Meller is tapping into a massive opportunity.
AMPs corporate super business in Australia might have $24 billion in assets under management compared to only $14.7 billion in assets under investment in China Life Pension Company.
RBA governor Glenn Stevens said in the statement accompanying Tuesday's rate decision that "the most prudent course is likely to be a period of stability in interest rates," despite the Australian dollar being stuck in the tight trading range between US92¢ and US93¢. The statement had sparked market speculation about when the "period of stability" will end.
Economists agree that the next move by the central bank will be a tightening of monetary policy. But they have produced wildly varying forecasts for the timing of that move from as early as February 2015 (Commonwealth Bank of Australia) to as late as the first quarter of 2016 (Bank of America Merrill Lynch).
At the monthly board meeting on Tuesday, the central bank kept the cash rate on hold at 2.5 per cent for the 12th consecutive meeting, marking the longest period of steady rates since 2006.