Back Testing Platform for Data Driven Investors

A New Back Testing Platform is launched

Moving Average is a technical analysis method that measures the average price of a financial asset over a certain time period and is considered one of the single most important indicators used by investors to determine buying (and selling) opportunities. 

This automated tool here will help you to back test Moving Average signals on your favorite stocks listed in major stock exchanges including NYSE, Nasdaq, London Stock Exchange. By doing this, we hope you will then be able to identify which trading strategy works best for you from a statistical standpoint.

Indicators we are using in this back testing model include

Moving Average, Relative Strength Index RSI, Trend Line, Stop Win and Stop Loss, Correlation and Divergence and more

https://sites.google.com/view/movingaveragebacktestindex/home

ANZ Bank interview

ANZ Bank (ASX:ANZ) operation in Asia Pacific - as big as New Zealand by 2012

ANZ Bank is one of the top 4 leading banks in Australia. With operation across Australia, New Zealand and 26 key markets in the Asia Pacific Region, they serve more than six million customers worldwide, providing a range of banking and financial products and services to retail, small business, corporate and institutional customers. The bank acknowledges the importance of the Asia market and is actively seeking to expand their presence in the region.

Speaking with Eugene Yao from ACN Newswire, a spokeswoman from ANZ Bank offered information about the bank’s business development in the Asia Market. (This article is also archived in the series “Interview with Eugene Yao”, ANZ Bank Business development in Asia)

1. What are some of ANZ’s long term goals for Business Development in Asia?

ANZ’s long-term aspiration is to become a super regional bank focused on Australia, New Zealand and Asia Pacific. This involves pursuing growth opportunities in the Asia Pacific region, expanding the bank’s presence in Australia and maintaining its leading position in New Zealand. ANZ aims to increase its presence in the Asia Pacific region to around 20% of earnings by 2012, similar to the level generated from the group operation in the New Zealand market.

2. There has been quite a bit of speculation on the ANZ‘s bid on some of the RBS’s assets in Asia, what can you tell us about that?

Consistent with its growth strategy, ANZ is one of a number of parties participating in a competitive sale process being conducted by Royal Bank of Scotland Group plc (RBS Group) in relation to certain businesses in Asia. As part of that process, ANZ has submitted a non-binding proposal to RBS Group for selected businesses.

In a recent statement ANZ said the scope, terms (including regulatory approvals), timetable and risk profile of any transaction - and whether a transaction will occur - remained unknown.
However, if such an acquisition were to proceed, ANZ’s Tier 1 capital ratio would immediately increase above its target range of 7.5% to 8.0%. In fact, following the recent successful share purchase plan, ANZ’s Tier 1 capital ratio has risen to 9.8%.

ANZ applies a disciplined approach in assessing new investment opportunities. In a recent statement the bank said “an acquisition of the selected RBS Asia assets would initially have a modest negative impact on reported earnings per share but over the medium term the impact would be expected to be positive.”

Consistent with ANZ’s super regional strategy, the aim for the acquisition would be to provide a base for substantial value creation. Actual future outcomes would be dependent on (among other things) ANZ successfully integrating the acquired businesses with its existing business and implementing its plans for the acquired businesses.

3. What can you tell us about ANZ business development in the Asian market in Australia?

ANZ has several initiatives in place to assist people who migrate to Australia. The bank assists people to set up a transaction account and a savings account in Australia, even before they arrive.

ANZ has five such offices (in addition, of course, to the bank’s NZ branch network which also assists people from NZ who move to Australia). There's three in China (in Beijing, Shanghai and Guangzhou) one in Mumbai, India and one in London. This service supports customers before they arrive in the country.

ANZ has also recently expanded its network of specialist branches, which cater specifically for Chinese customers. There are now 14 identified branches staffed with at least one Asian Banking manager. There are six such branches in Sydney, four in Melbourne, two in Brisbane and one each in Adelaide and Perth.

At these branches at least one staff member (or more) will be able to speak at least Mandarin, and in many cases Cantonese. ANZ aims to link each person who has set up an account prior to moving to Australia from China with one of our specialist Asian Banking Managers.

ANZ recognizes there are many customers who have migrated from China to Australia, who continue to operate businesses in China. That's why our Asian Banking Managers also have strong relationships with ANZ China and can relate to our customers by actively working in the Chinese community.

For Further information please visit: http://www.anz.com.au

Macquarie Bank Interview

Macquarie Group (ASX:MQG) Fund Management Division: Business Development in Asia 2009

Despite the global financial crisis, Macquarie Group (ASX:MQG) has continued to perform well in the market and maintain its leadership as one of the strongest global provider of banking, financial, advisory, investment and funds management services in the Asia-Pacific region. In fact, the group has generated a profit of AUD$871 million in the financial year (FY ended 31 Mar 2009). One of the key areas of growth is witnessed in their Funds Management Group which grew by 12% over the last financial year.

In an interview with Eugene Yao from ACN Newswire, Mr Bruce Murphy (Executive Director of the Macquarie Funds Group) talks about the success of Macquarie group and business development of his division in the Asia Pacific region in 2009.

Murphy stated that the group’s focus on strong risk management, product liquidity and commitment to service excellence aided the Macquarie Group in averting from the worst hit of the global financial crisis last year. Customer retention was achieved, due to the Group’s commitment to service excellence. The Macquarie Group has earned its reputation on professionalism, honesty and customer service through frequent visitation and communication with their clients during the difficult time. The Macquarie Group backed by a strong balance sheet position and well established history, continues to be one of the most preferred financial services groups in the region.

In Asia, in addition to offering Macquarie product, the Funds Management Group also specializes in providing “white label” products to institutional investors and fund managers, some of their existing clients include HSBC, JP Morgan, Barclay, RBS, Morgan Stanley, Goldman Sachs and more. Murphy believes that Asia is a rising economy with strong growth potential and Macquarie Funds Group has established offices in Hong Kong, Singapore, Malaysia, Japan, Korea and Taiwan to further strengthen their presence in the region.

Macquarie Funds Group is also looking to introduce their “SICAV” products to the Asia market during the late Q3 of 2009. Macquarie’s “SICAV” is an open ended investment scheme initially focusing on investment in “Real Assets” (commodity, infrastructure, agriculture and real estate). Under the scheme investors are entitled to request the redemption of their units at the Net Asset Value (NAV) at anytime. Murphy believes that the “Real Assets” class will be among one of the first group to recover from the current financial crisis and will benefit from the anticipated inflation to come.

Macquarie has always been innovative in their approach. In Australia, the group has introduced the “Flexi 100” which features a 5 year investment plan with capital guarantee and options for the investors to redeem their money at each anniversary, as Murphy pointed out, the flexibility on redemption makes “Flexi 100” quite a unique offer as a capital guarantee product in the marketplace. Murphy also stated that Macquarie group will extend this kind of creativity into Asia and continue to explore and develop new investment solutions for the Asia market.

ABOUT MR BRUCE MURPHY

Bruce is an Executive Director and joined Macquarie in 2004 as Head of Distribution. Bruce is responsible for Macquarie Funds Group's Australian and Global fund distribution for both Institutional investor and intermediaries globally. Prior to joining Macquarie Bruce was responsible for Deutsche's retail funds business in Australia and had held product development and marketing roles with Prudential and Citibank.


ABOUT MACQUARIE GROUP (ASX:MQG)

Macquarie provides specialist investment advisory and financial services in select markets around the world.

With a network of over 12,700 people in 26 countries, focusing resources on where they can add the most value and deliver real advantages to clients. As a result they’ve reported consistent growth for over a decade, establishing leading positions in a range of markets.

http://www.macquarie.com

ABN AMRO Interview

ABN AMRO Morgans (50% owned by Royal Bank of Scotland (LON:RBS)) helping Asian investors to look for Investment Opportunities in the Australia Resource Sector

While the down turn in the economy represents challenges for some, it is not the case for those cash rich investors who are looking for investment opportunities at a discounted price. It is evident that many Chinese companies are buying into Australia resource sector at an unprecedented rate recently. In reality, many miners are suffering through the global financial crisis and are happy to accept this funding to ensure their corporate health and sustainability.

In an interview with Eugene Yao from ACN Newswire, Mr Raymond Chan (Head of Asian Desk at ABN AMRO Morgans) gave us some fresh insights and first hand information on today’s market.

To keep pace with the industrial and commercial development, as well as the new demands placed on urban infrastructure, China’s demand for overseas raw material supply is increasing. World Steel Dynamics also commented the tight iron ore markets had put pressure on Chinese steel companies to “explore alternative ways to secure appropriate supplies” by buying into projects outside of China.

Australia, as a country with abundance of resources and close geographical proximity to China, attracts many Chinese companies to source the lifeblood of production - resources. For example, some of the most talked about deals includes;

• Fortescue Metals Group (ASX:FMG) joint venture with Baosteel (SHA:600019)
• Minmetals (HKG:1208) ‘s bid for Oz Minerals (ASX:OZL)
• Chinalco (SHA:601600, HKG:2600) ‘s bid for Rio Tinto (ASX:RIO)
• Guangdong Rising Asset Management ‘s strategic investment Pan Aust Limited (ASX:PNA)


However, Raymond also pointed out that China makes up just 0.4% of inward foreign investment in Australia currently and he believes that China investment in Australia will continue to rise. As one of Australia’s key trading partners already, it is only natural for China to seek out investment here, just as the Japanese, American, South African, British and Canadian have done in past cycles.

Raymond also suggested that the world economy is in favor for the Australian miners in the long run. As the US recession deepens, the only way for the US to ride out of the recession is by raising the commodity prices on their exports. It is expected that the increase in world commodity prices will give Australian miners a greater profit margin.

Both the Australian and Chinese governments also play supportive roles in the Australia China relationship. Whereas, Australia needs inward foreign investment to support the economy, on the other hand, China needs an outlet for their money to counteract with the rising RMB pressure.

Mining, as Australia major source of income in export, will continue to do well.

ABN AMRO Morgans was Lead Manager and Underwriter to an AUD $143 m equity raising by Pan Aust Limited (ASX: PNA). Pan Aust also raised an additional AUD $180 m from Guangdong Rising Assets Management ("GRAM"). Under the agreement, GRAM will serve as a cornerstone investor for PNA and a strategic alliance to support PanAust’s future growth initiatives in Asia. Raymond believes ABN AMRO Morgans will continue to play an important role in facilitating more transactions between the two countries.

About Mr Raymond Chan

Mr Raymond Chan is a JP, qualified Certified Practising Accountant (CPA) and Certified Financial Planner (CFP), CPA Financial Planning Specialist (FPS). Mr. Chan holds a Master Degree in Commerce (Funds Management) with Distinction average and Bachelor Degree in Accounting and Finance from the University of New South Wales. Currently, he is employed by ABN AMRO Morgans as Head of Asian Desk and his desk is managing in excess of A$225 million client assets. Prior to the current position, Mr Chan worked with Merrill Lynch and HSBC Securities.

Mr Chan has successfully developed a dynamic business model, servicing retail and corporate clients in financial planning and stock broking. He has established very strong relationships with a number of listed companies in Australia, Hong Kong, Singapore and Malaysia. Mr Chan is often invited to provide commentary for Australian leading media such as SBS Radio, i-Cable HK, Sydney Morning Herald, The Age, Sunday Telegraph, Herald Sun, The Australian, TVB Jade and 2CR Radio Network.

About ABN AMRO Morgans

ABN AMRO Morgans was formed by a merger of Morgan Stockbroking Limited, one of Australia's premier retail brokers, and stockbroking arm of European bank ABN AMRO in October 2000.
The merger created Australia's largest national full-service retail stockbroking and financial planning organisation with over 300,000 clients, 490 advisors and 840 staff operating from 53 offices in all states and territories.

http://www.abnamromorgans.com.au

Merrill Lynch Interview

Merrill Lynch Global Wealth Management Business Developments 2009

Merrill Lynch Global Wealth Management (GWM) provides advice-based wealth management services and products, meeting the needs of high-net-worth individuals as well as small to mid-sized business owners. Even though the Global financial crisis significantly impacted some of their clientele, Chris Selby is quite confident that as the financial markets rebound and the investors’ confidence returns, Australia economy and high net worth population will undergo a period of rapid growth in the near future.

In an interview with Eugene Yao from ACN Newswire, Chris Selby (Managing Director, Head of Merrill Lynch Global Wealth Management Australia and New Zealand) discussed some of the key challenges faced by the company and his outlook for the future.

Below is an edited version of the interview.

1. What is your view on the Australia economy?

The Australia economy is relatively stronger in withstanding the Global Financial Crisis (GFC) in comparison to regions like North America, Europe and Hong Kong. It is expected that the Australian economy will be among the first to recover from the GFC due to the country’s close tie with the higher growth Asian economies, and the healthier balance sheets across both Corporates and Individuals. There are also signs over the past year that many Australian investors are transferring their assets back home, which also further strengthen our domestic economy.

2. Can you highlight a few key findings in the World Wealth Report 2009 released today?

The World Wealth Report 2009, conducted by Merrill Lynch Wealth Management and Capgemini, identified some of the key trends and changes among the High Net Worth Individuals (HNWI) and their investment approach. Some of the key findings include:

• Allocation to fixed income and cash based investments totaled 50% of overall HNWI portfolios globally, a 6% increase from 2007.
• Allocation to real estate increased 4% from 2007, totaling 18% of overall HNWI portfolios globally, as HNWI saw opportunities in the market.
• Many HNWIs are shifting their investment from overseas market back to familiar domestic markets.

These findings are important to wealth management firms, like Merrill Lynch (ML), in devising business strategies in addressing the ever-changing needs of our clients through these difficult times.

3. The report says that 50% of overall HNWIs portfolios are with fixed income and cash based investment. What type of investment options does ML offer in correspond to these growing demands?

ML offers comprehensive coverage on all global bond markets. This includes bonds issued by Sovereign, Corporate and Regional/Municipal bodies. Also, the ML global platform includes over 6000 funds, with many specifically tailored for cash, cash-like or fixed income. The key is ML can tailor a portfolio for whatever is appropriate for the client. ML can also offer financing in any currency to ensure the right balance of gearing is available.

4. The WWR 09 also suggested that HNWIs are becoming increasingly concerned about “risk management” and “due diligence capabilities” in choosing what Wealth Management firm to stay with. What measures or strategy does ML take in addressing to this trend?

At ML, we take risk management seriously. All accounts are regularly monitored to ensure suitable investments match the client’s risk profiles. Likewise, strict lending and limit thresholds are also monitored daily. The Wealth Management business, in conjunction with the Institutional bank, continuously evaluates assets and, in the case of funds, ensures that any changes within the management are reviewed and remain suitable investments.

All funds are screened before being eligible to be sold. All new Debt or Equity issues must pass a review on suitability. This is all in conjunction with the standard Anti-Money Laundering and Know Your Client due-diligence required.

5. The WWR 09 also suggests that HNWIs are placing more emphasize on online accessibility to their portfolio. What does ML offer in addressing this increasing demand?

For example, the Merrill Lynch will be launching its BT wrap platform association on August 2nd, 2009. This will enhance the domestic product base to include all Australian domiciled funds available on BT's platform. In addition, tax reporting is made simpler, less time consuming and less expensive, by providing each client with one set of accounts for all of their investments.

In conjunction with BT wrap, we will also be launching a service called “Praemium” (an info pack will be available in early July). Praemium offers comprehensive tax reporting for all investments (both domestic and international) in one statement, designed with and for local reports. ML is proud to be the first firm in Australia to offer this comprehensive reporting service to clients.

6. There has been some criticism about the merger of Merrill Lynch and Bank of America. What is your view on that?

In regards to the merger of Bank of America and Merrill Lynch, I believe the combined forces will allow the group to provide a much broader array of solutions, products and services to our clients. The combined entity will have both the commercial and investment banking capacities, which mean that ML GWM can now offer more than just personal investment service to our clients, but also providing them with business solutions that look after their commercial and business financial requirements as well.

About Chris Selby

Chris, Managing Director and Head of Wealth Management, is responsible for the Private Client activities. His role is to develop and expand the combined Bank of America and Merrill Lynch platform serving individuals and smaller institutions for all products.

Up until 2009, Chris, was MD of the Investment Bank. In 2005 he joined the investment Banking team to focus on Capital and Structured Credit/Capital opportunities principally for Financial Institutions. His expertise is in the Alternative Capital and Investments for Issuers and Investors.

Chris joined Merrill Lynch New York in 1985 with the non-Dollar Sales group covering US Institutions. He moved to Sydney in 1987 to cover US Hedge Funds for alternative A$/NZ$ investments and to expand the Sydney domestic sales platform.

His roles in Australia have included Head of Global A$ Fixed Income Sales, Head of Fixed Income and in 2002 Head of Debt and Capital Markets. He has also been a member of the 7 person Australian Executive committee. Chris has a Bachelor of Arts in Political Science and Asian Studies from Connecticut College.

About Merrill Lynch Global Wealth Management

Merrill Lynch Global Wealth Management (GWM) is a leading provider of comprehensive wealth management and investment services for individuals and businesses globally. With approximately 16,000 financial advisors and more than $1.1 trillion in client assets, it is among the largest businesses of its kind in the world. More than two-thirds of GWM assets are with clients who have a net worth of $1 million or more. Within GWM, the Private Banking & Investment Group provides tailored solutions to ultra high net worth clients, offering both the intimacy of a boutique and the resources of a premier global financial services company. These clients are served by more than 160 Private Wealth Advisor teams, along with experts in areas such as investment management, concentrated stock management and intergenerational wealth transfer strategies. Merrill Lynch Global Wealth Management is part of Bank of America Corporation.

http://www.ml.com/