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InvestSMART.com.au - Newsletter
InvestSMART  
Newsletter #709 - 2nd November 2006  Home My Portfolio My TrailCap Search Email us

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Inflation, jobs data tipped to bring a rate rise - The Age, 26 October 2006

The RBA has raised rates twice this year, in May and August. All 25 analysts surveyed by Bloomberg tip another rise on November 8, a day after the RBA's next board meeting. The consumer price index (CPI) rose 0.9 per cent in the last quarter and 3.9 per cent over the year, causing financial markets and economists to lift their expectations of another 25 basis point rate rise next week.

Click here to read the full article.

Some lenders have started putting up their fixed interest rates in anticipation of this rate rise. The average 3 year fixed rate at the moment is about 7.2% per annum, but Suncorp’s 3 year fixed rate is still at 6.99% (Comparison Rate 7.21%). Any clients wishing to fix all or part of their mortgage should complete our free Loan Analysis. One of our qualified mortgage brokers can then give you a call at a time to suit you and work out a structure to best suit your budget and lifestyle.

Regards
The InvestSMART Team


In Focus

more Reed Property Trust

The Reed Property Trust (Trust) is a boutique unlisted unit trust that invests primarily in a range of income earning property-based assets, consisting of direct property, listed and unlisted property trusts and property syndicates.

The primary investment objectives of the Trust are to:

  • Achieve a distribution yield to investors of 8.5 cents per annum for the period ending 30 June 2007*
  • Deliver a stable, reliable income stream – distributions will be paid quarterly
  • Provide taxation benefits to investors - distributions are expected to be in excess of 100% tax-deferred for the Forecast Period*
  • Maintain the real value of the Trust’s investments with prospects of capital growth
  • Enable superannuation funds to invest with a distribution reinvestment plan
  • Provide a limited level of liquidity to investors
  • Grow the Trust through acquisitions sourced from both the Australian property market and the Reed Property Group development pipeline

Click here for more information and to request a Product Disclosure Statement (PDS).



more T3 Innovations

If you're interested in T3, then take a look at Macquarie's innovative Instalment Warrants to gain exposure to T3 receipts. Instalment warrants basically allow you to leverage yourself into an investment through lending a portion of the upfront cost, though no risk of any margin call on the loan.

Leveraging into T3 can considerably increase your dividend yield on this investment. Macquarie have calculated a better potential dividend yield on purchasing their TL3IMJ Instalments+ without taking price movements of the T3 receipts into account.

After many requests from clients, InvestSMART have created a fact sheet to help explain their features and benefits. Click here to read more.

Importantly, you are unable to buy these Instalments until after the T3 Receipts list on the ASX in early November. If you are looking for ways to leverage into T3, then consider Macquarie’s T3 Innovations.

Click here for more information and to request a Prospectus.



more Northern Territory Oil Limited – Float/IPO expected to close 22 November 2006

NT Oil’s strategy for achieving shareholder returns is to have, at all times, a combination of production and exploration acreage. The production acreage will allow the Company to stay cashflow-positive without the need for debt or dilution, and the exploration acreage will keep the production stream flowing in the future.

Northern Territory Oil was established to generate significant and sustainable medium to long term rewards for investors who wish to take advantage of the strength in oil prices by having an interest in oil exploration and production in Australia and the USA. The Company offers an intensive drilling program with the prospect of early results.

Click here for more information and to request a Prospectus.



more Melbourne Cup ticket giveaway

Thankyou to everyone who responded to our ticket giveaway! All 10 free tickets have now been allocated to lucky subscribers.

Current Investment Opportunities more
Offer Closing Date
Cadence Capital Limited 24th Nov 2006
Eagle Eye Metals Limited 6th Nov 2006
Macquarie Bank Self Funding Instalment Warrants Open ended
MQ Comets Diversified Trading Fund 10th Nov 2006
Northern Territory Oil Limited 22nd Nov 2006
Queensland Gold and Minerals Limited 30th Nov 2006
Reed Property Trust Open ended
Series 2 OM-IP 15seven Limited 24th Nov 2006
T3 Innovations Open ended
Telstra 3 Share Offer 9th Nov 2006
TEYS Strata Mortgage Trust Open ended
van Eyk Blueprint Alternatives Plus 17th Nov 2006

Offer Overview more
Offer Reed Property Trust
Minimum Investment $5,000
Disclosure...
InvestSMART will receive a 1%p.a. trailing commission.
Offer Documents

Download  Product Disclosure Statement (PDS)

Request a Product Disclosure Statement (PDS)  Request a Product Disclosure Statement (PDS) by Post

Offer Overview more
Offer T3 Innovations
Disclosure...
InvestSMART will receive a 1.5% placement fee.
Offer Documents

Request a Innovations Pack  Request a Innovations Pack by Post

Offer Overview more
Offer Northern Territory Oil Limited
Minimum Investment $2,000
Expected Close Date 22nd November 2006
Disclosure...
InvestSMART will receive a 5% sales commission.
Offer Documents

Download  Prospectus

Request a Prospectus  Request a Prospectus by Post

Offer Overview more
Offer Eagle Eye Metals Limited
Minimum Investment $2,000
Expected Close Date 6th November 2006
Disclosure...
InvestSMART will receive a 5% sales commission.
Offer Documents

Download  Prospectus

Request a Prospectus  Request a Prospectus by Post

All dates are indicative only and are subject to change without notice.



Managed Funds - 100% Entry Fee Rebate & TrailCapTM

Most Popular Funds more
Fund Morningstar
Rating
S&P
Rating
Aust Unity Property Securities Growth
Real Estate Capital Partners Enhanced Income Fund Not rated
Macquarie Super/RO Plan - Macquarie Small Compan's Not rated
Recent Fund Re-Ratings more
Fund New Rating
Advance Int'l Fixed Interest Multi-Blend Fund
Tyndall - International Bond Fund
ABN AMRO - High Income Global Property Securities

Top Performing Investment Funds more
Fund 12 Month
Return
Morningstar
Rating
S&P
Rating
Aust Unity Property Securities Growth 43.25%
Ganes Focused Value Fund 37.37% Not rated
Challenger FM Small Companies Fund 37.02% Not rated
Top Performing Super Funds more
Fund 12 Month
Return
Morningstar
Rating
S&P
Rating
Macquarie Super/RO Plan - Macquarie Small Compan's 33.25% Not rated
HH Ethical Superannuation Fund - Balanced Eq 27.34% Not rated
Advance Ret Plan International Shares Multi-Blend 26.34% Not rated
Managed Fund data is supplied by Morningstar Research and Standard & Poor's Information Services and is subject to the following disclaimer. Dates for historical returns vary from fund to fund.



Insurance

Life Cover Total & Permanent Disability Trauma Income Protection

Without personal risk insurance, such as Term Life Insurance, Total and Permanent Disability ("TPD") and Income Protection, you are vulnerable to rapid and unexpected financial ruin. The possibilities of being unable to work are substantial and in fact quite alarming. Your ability to earn an income is the cornerstone of your economic lifestyle.

InvestSMART aims to provide the most appropriate and cost effective personal risk insurance cover for all of our members. Even though we can provide access to all of the personal risk insurance options available through most life companies in Australia, InvestSMART currently chooses to provide tailored quotes from ING's new OneCare life risk insurance product.

Click here to get a free insurance quote.

Child cover...
In 2003, there were approximately 320,000 children aged 0-14 years with a disability in Australia
Click here for more on ING's unique child cover.



Floats & IPOs

Floats & IPOs - extract only more
Company Security Code Offer Close Date Float Date Issue Price First Day Open First Day Close
Recent Floats
Eromanga Uranium Limited ERO 16th Oct 2006 31st Oct 2006 $0.25 $0.24 $0.23
Fairstar Resources Limited FAS 24th Oct 2006 30th Oct 2006 $0.25 $0.56 $0.57
Nomad Building Solutions Limited NOD 20th Oct 2006 31st Oct 2006 $1.00 $1.35 $1.40
Upcoming Floats
Burey Gold Limited BYR 30th Nov 2006 13th Dec 2006 $0.20 - -
Costarella Design Limited - 6th Dec 2006 15th Dec 2006 $0.20 - -
North Queensland Metals Limited NQM 30th Nov 2006 14th Dec 2006 $0.20 - -
Pluton Resources Limited PLV 5th Dec 2006 15th Dec 2006 $0.20 - -
Sapex Limited - 1st Dec 2006 15th Dec 2006 $0.20 - -
Stonehenge Metals Limited - 6th Dec 2006 20th Dec 2006 $0.20 - -

All dates are indicative only and are subject to change without notice.



Broker Consensus

InvestSMART's Broker Consensus Report collates the weekly recommendations (Buy, Hold and Sell) from some of Australia's top brokers and presents these in a searchable database. It is an important report highlighting potentially valuable investment opportunities. Why trust one broker when you have access to the opinions of many? Click here to see the full report.

Broker Consensus Report - extract only more
Company Consensus
Update
12 Month
Target Price
(average)
Current Price Brokers Surveyed Consensus
Recommendation
St George Bank Limited (SGB) 2nd Nov 2006 $32.35 $32.50 10 Hold
Rinker Group Limited (RIN) 2nd Nov 2006 $17.19 $18.67 10 Hold
Newcrest Mining Limited (NCM) 2nd Nov 2006 $25.06 $24.42 10 Hold

Current Price as at publication. Prices are approximate only. Data compiled and supplied by FNArena.



Dividend Timetable

The following table shows an extract from InvestSMART's Dividend Timetable. This timetable lists the details of upcoming company dividends including ex-dividend dates, payment dates and franking information. Click here to see the full timetable.

Dividend Timetable - extract only more
Company Comment Dividend
(per share)
Franking Ex-Dividend
Date
Payment
Date
Harvey Norman Holdings Limited (HVN) 2006 Final Year Result 4 ¢ 100% 3rd Nov 2006 11th Dec 2006
Macquarie Radio Network Limited (MRN) 2006 Final Year Result 3.5 ¢ 0% 3rd Nov 2006 24th Nov 2006
Warehouse Group Limited (The) (WHS) 2006 Final Year Result 6.4706 ¢ 0% 3rd Nov 2006 20th Nov 2006



Changes in Director Interest

We have long held the view that a change in a listed company's share registry by its directors sends a clear signal to the market. In fact, such changes must be reported to the stock exchange and now, because of InvestSMART's unique Changes in Director Interest feature, they are also reported to investors. Click here to find out what company directors are doing with their shares.

Changes in Director Interest - extract only more
Company Director Date Acquired/Disposed Quantity
Verticon Group Limited (VGP) Denis Tomasel 1st Nov 2006 Disposed 50,000
Resource Pacific Holdings Limited (RSP) Paul Jury 31st Oct 2006 Acquired 1,972
Webster Limited (WBA) Roderick James Roberts 31st Oct 2006 Acquired 186,516



Mortgages

Don't forget to lock up

Annette Sampson, The Sydney Morning Herald, October 14 2006

Tired of rising mortgage rates? While variable interest rates have been rising in recent months following the May and August hikes in official interest rates, fixed rates have been falling.

According to research company Cannex, six lenders have cut the rate on their three-year fixed rate loans by a substantial 20 basis points or more. Since the start of this month, 24 lenders have cut their three-year rates, while just six have lifted rates.

The irony is that while fixed rates have been falling, the odds of further official interest rate increases have been rising. In a speech to a conference of economists this week, new Reserve Bank governor Glenn Stevens made it clear that while the economic signals were mixed, the central bank would not hesitate to lift rates further if it felt inflation was becoming a problem.

Click here to read the full news article.

Click here for a free home loan health check to see if InvestSMART can save you money on your mortgage.






  • Interested in promoting a capital raising to 70,000+ Australian investors? Please call InvestSMART on 1300 880 160 or email admin@investsmart.com.au.
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* Forecast fund distribution is 8.5 cents per unit (cpu) p.a. to 30 June 2007 (annualised), which will deliver a yield of 8.5% p.a. (annualised) based on a unit price of $1.00. It is important that you read the PDS in full before deciding whether to invest in the Trust. You should also consider whether or not an investment in the Trust is appropriate for you.
+ Assumptions: (1) the underlying T3 Receipt price is $2.00; (2) expected dividend is $0.14, fully franked; (3) yield calculations are for the period only, and have not been annualised; and (4) this analysis does not consider any potential capital gains or losses that the investor is exposed to on the underlying share and/or put option. As a result, the actual total return realised from these investments may vary significantly from the figures shown in the table.

IMPORTANT : InvestSMART Financial Services Pty Ltd makes no recommendations as to the merits of any investment opportunity referred to in this email or its related websites. Before making any investment decision on the basis of any reports or information provided you must read the disclosure document and make your own investigations regarding the accuracy, reliability and completeness of this information. This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. All indications of performance returns are historical and can not be relied upon as an indicator for future performance.