Investment Firm, Shaw and Partners Enhances Returns to Shareholders

Shaw and Partners is an Australia’s preeminent investment and wealth management firm, managing $16 billion of assets under management. Shaw and Partners’ major segments are financial planning, advisory process and wide breadth of services. Their financial planning segment has Financial Planners and Investment Advisers offering wide range of areas including superannuation, retirement and estate planning, risk insurance and investment advice. Wide breadth of services comprise specialist financial planning products and services. Advisory process team implements financial plan and reviews it regularly.

Shaw and Partners reported a revenue of $98.4 million for fiscal year of 2018, which is a rise from $73.8 million as compared to the prior corresponding period. Major drivers for this performance is growth across all of its three segments- platform fees, trading commissions and Corporate finance. The firm delivered a profit after of $5.6 million as compared to $1.2 million, in the prior corresponding period.

This performance led the management to declare dividends of $3.6 million which is more than double growth as compared to $1.6 million in same period last year. Management reported that they have invested over $4 million in the business on systems and compliance. [optin-monster-shortcode id="wxhmli4jjedneglg1trq"]

The group has been expanding their wealth management team. They appointed a Joint-Lead Manager for their upcoming Midway Limited Placement who is looking to raise up to A$37.7 million via a non-underwritten institutional placement of up to 11.2 million shares to raise A$33.7 million and a non-underwritten share purchase plan to be capped at A$4.0 million.

Meanwhile, Shaw Australian Equities Large Cap Portfolio has outperformed the benchmark generating 15.97% as compared to S&P/ASX 100 Accumulation Index returns of 11.76% (Based on July 2018 monthly review) since inception. However, the Australian Equities Large Cap Core portfolio generated 1.37% during July which is lower than 1.6% returns from S&P/ASX100 index during July hurt by Materials and Energy sectors. The group then upgraded the target price on BHP to $40.00 (as per July 2018 report) while positioning Westpac and NAB’s weightings on track with returns.

Sector performance (Source: Company reports)

Going forward, the firm is maintaining a major overweight position to Energy and Materials sectors, while balance with Banks and REITs sectors has been demonstrated (Based on July 2018 monthly review).

With this whole scenario wherein the group has enhanced the returns to the shareholders through dividends, the investment and wealth management company has gained good traction.

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