- AMP identified ASIC’s legal action on it accusing the Company for charging the premium amount and fees to deceased clients’ accounts.
- Commerce Commission published a draft for Chorus’ price-quality determination during the initial regulatory term for fibre.
- Air NZ has been granted five extra months of cargo air travel as per the New Zealand Government’s programme called MIAC.
Diversification of portfolio in simple terms implies the distribution of capital in numerous asset classes like shares, bonds, etc. During uncertain times like the ongoing coronavirus pandemic, stock markets tend to turn volatile.
Diversification comes to an investor’s rescue during the bear market. The strategy behind the concept is to offset the market risks and gain the maximum profit.
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With the above backdrop, let’s catch up with the 5 diversified stocks, out of which most of them are dual-listed.
Financial services provider AMP Limited provided an update to the market on 27 May 2021.
According to it, AMP has been dragged to the court by the Australian Securities & Investments Commission on the charges of violations related to the deduction of life insurance premiums and service payments from superfunds of dead consumers.
Previously in 2018, AMP acknowledged the concerns pertaining to the accounts of dead clients and tried to fix such accounts between 2011 to 2019, which consisted of payment for lost earnings.
On 27 May, at the time of writing, AMP was trading up by 6.19% at NZ$1.200.
Cannasouth Limited (NZX:CBD)
Kiwi Biopharma entity, Cannasouth Limited, notified the exit of its Independent Director.
Mr. Conor English, the Independent Director, would officially quit from the Company on 28 June this year at its Annual Shareholder Meeting.
As his parting shot, he mentioned that his journey with the Company had been exhilarating. He is a great enthusiast of cannabis-based medicines and the contribution they can make in improving an individual’s well-being.
On 27 May, at the time of writing, Cannasouth share price was up by 3.75% at NZ$0.415.
Telco infrastructure provider Chorus Limited on 17 May submitted MAR between NZ$720 million-NZ$820 million to Commerce Commission.
On 27 May, Commerce Commission gave its decision on the Company’s price-quality determination during the initial regulatory term for fibre.
Few aspects of the decision encompass the following:
- A shrinking value of depreciation approach towards the monetary loss asset.
- Topline profile during the term to be ironed out;
- 46% (post-tax) WACC, consisting of a risk-free rate of 0.43% for the quarter closing March-end; and
- Proposal to slash NZ$52 million in Chorus’ operational spending during the term.
On 27 May, at the time of writing, Chorus was trading down by 2.47% at NZ$6.310.
Kiwi flag carrier airline, Air New Zealand Limited, on 27 May was granted another five months of cargo air travel as per the Government’s programme called MIAC (Maintaining International Aire Connectivity).
Air New Zealand has been granted around 30 flights each week to 13 destinations.
The programme was launched in March this year, wherein the Government provides monetary help between $120 million-145 million to the airlines bestowed with extra flights to bear the expenses of flying. This programme would go on until October this year and would be of great help when the borders are closed.
On 27 May, at the time of writing, Air New Zealand’s share price was down by 0.30% at NZ$1.685.
Electricity generation entity Mercury NZ Limited has recently notified the market on the new hiring of Future Director-Kim Gordon effective from 1 May 2021.
Gordon holds a specialisation in the technical consulting field and is also a partner at MinterEllison.
The Company’s Chairperson, Prue Flacks, opined that Ms Gordon was getting associated with Mercury NZ and the energy sector at a time when it was on the verge of helping the country’s transition towards a low-carbon world.
On 27 May, at the time of writing, Mercury NZ’s share price was up by 3.58% at NZ$6.940.
Why to Diversify the Portfolio?
Diversification of stocks can act like an umbrella, shielding an investor during rainfall or volatile market condition. It could help gain through one asset class if the other does not do too well.