The S&P/ASX 200 is approaching the key 4350 resistance level. This level has been a barrier of resistance since last July and investors should be looking to protect their profits. Profit protection can be obtained by outright selling the position, or by buying a protective put, as discussed last year in the article Options Trading (Part 1): The Protective Put.

However there can be reasons why a long term investor may not want to cash out at this time, such as capital gains tax or perhaps an upcoming dividend. A cheaper alternative to buying a Protective Put would be to enter into a Bear Put Spread, which limits the cost of the protection, but also limits the degree of protection.

Cheaper Protection Using Bear Put Spreads

A Bear Put Spread is an options strategy that can be used to buy put options at a discount and can be particularly useful when you have an existing stock position that you want to protect. It is a debit spread that can be an effective way of hedging an underlying share position, as it allows investors to purchase put options at a relatively cheaper cost than an outright put purchase.

The Bear Put Spread is an option strategy that makes its maximum profit when the underlying stock declines to the short strike and has its maximum risk if the stock rises in price to the long strike. The strategy is to be implemented using puts, where an option with a higher striking price is purchased and one with a lower striking price is sold simultaneously, both options generally having the same expiration date.

The Bear Put Spread option strategy is established by selling to open an Out of the Money (OTM) put option, which effectively reduces the cost of the In the Money (ITM) or At The Money (ATM) Put options. This reduces the upfront payment and therefore the risk of the position, making it an ideal option trading strategy for investors who want protection from falls in a down market, while holding on to their existing position (hedging).

Standalone, the Bear Put Spread is a bearish option strategy that profits when the underlying stock price falls. The Bear Put Spread involves simultaneously buying to open and selling to open options of the same expiration month, making it a Vertical Spread and because you need to pay money to put on this position, resulting in a net debit, this is also known as a Debit Spread.

A debit spread profits from a move in the share price through the purchase of an option near at-the-money (ATM) (or ITM), whilst reducing the cost of the trade by selling an option further out of the money (OTM). The advantage of the debit spread is that the cost of purchasing the option is lowered, while the downside to this strategy is that the profit is capped by the sold options, and this is why the investors must choose their option strikes carefully, so as to attain a good risk reward trade.

The debit spreads are directional trades as they benefit with an increase in volatility, and as such, a directional move in the share price. Note that if the trader expects a short sharp move in the near-term, then they would be better off simply buying a protective put.

Recent Trade – Toll Holdings

A recent trade that our clients took was to buy Toll Holdings around $4.50 in late January. The stock surged 17% in the subsequent couple of weeks. Clients were then faced with the dilemma of taking profits now or holding on for the dividend in early March.

We suggested that they could hedge their position using a bear put strategy – by buying a ATM Put & Selling an OTM Put.

In this trade with TOL trading at $5.20, the bear put strategy was established by Buying to Open TOLL 525 MAR12 Put for 23.5c and Selling to Open TOLL 476 MAR12 Put 7c, for a total outlay of 17.5c (ie. Net debit= 23.5c – 7c).

Note if you were more pessimistic and expected TOL to fall to $4.50 by expiration, you would have sold the 450 MAR12 Puts.

Risks and Profit Potential

The Bear Put Spread profits when the stock price falls towards the short strike, as the long put option will rise in price along with the underlying stock price, while the short put options continue to decay in premium. The maximum profit potential of a bear put spread is when the price of the underlying stock drops down to the strike price of the out of the money (OTM) short options, as beyond that price any gain in the long put options is matched exactly by a loss in the short put options.

Profit Calculation of the TOL Bear Put Spread:

Maximum Return = (Difference in strikes – Net Debit) ÷ Net Debit

Following up from the recent trade example:

Buy to open 10 TOL MAR12 525 Put for 23.5c per contract and sell to open 10 TOL MAR12 476 Put for 7c per contract.

Maximum Return = (525 – 476 – (23.5 – 7)) ÷ (23.5 – 7) = 31.5 ÷ 17.5 = 180%

Maximum Risk = Net Debit = 23.5c – 7c = 17.5, if TOL share price is > $5.25

Break Even = Higher Strike – Net Debit = 525 – 17.5 = $5.075

In summary the Bear Put Strategy offers a maximum risk limited to the Net Debit Paid, while the maximum loss is limited and the maximum upside profit is also limited. These risk/rewards are shown in the Payoff diagram.

Note this strategy can be used in order to hedge an underlying Toll Holdings stock position, while the investor is still eligible for the dividend payment in early March.

The Trade

Options can be used in order to reduce/hedge your risk, while still participating in potential profits from a significant move by the underlying stock. We have explained the Bear Put Spread strategy which can be used to allow you to protect an existing share position, while maintaining the benefits of ownership of the underlying stock.

In future articles we will talk about the High Yield Covered Call strategy and the Covered Call Stock Reversal strategy which is particularly relevant to this market.

Utilise the features in the Market Analyser software to plan your options trades for a particular options strategy using your specific trade selection criteria. You will save time and potentially reduce your trading risk.

By Michael Hevern
Trading Desk

** Please note your may need to refer to a tax profession regarding eligibility of franking credits.

See Also:

Options Trading for All Types of Market Environments (Part 1): The Protective Put
Options Trading for All Types of Market Environments (Part 2): The Covered Call
Options Trading for All Types of Market Environments (Part 3): The Covered Call Collar
Options Trading for All Types of Market Environments (Part 4): The Stock Repair Strategy
Options Trading for All Types of Market Environments (Part 5): Limited Risk Short Selling Strategy
Options Trading for All Types of Market Environments (Part 7): Dividend Capture Covered Call Collar

For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

MDS Financial Advisory Service offers general advice on trading options to generate consistent steady income on your investment portfolio. For further information please call 1300 610 024.

The SPI Futures is trading above the key pivot level of 4230, ending up 0.1% (or 2 points) at 4,259. The key levels for our index today are 4220 to 4280.

Aussie shares are expected to open flat today.  Traders should be looking to protect recent profits, as investors wait for some conclusive news on the Greek debt talks and for the Chinese CPI figures out today.  The Aussie reporting season heats up.   Markets held on to recent gains in the US and European markets overnight.

See below for ASX listed companies in the news today.

US Markets

US stock markets continued to melt-up overnight, as traders waited for the finialisation of an agreement among Greek politicians on austerity reforms ahead of the country’s second international bailout. 

The Dow Jones Industrial Average edged upwards to its highest high since May 2008.  In the broader markets the S&P500 and Nasdaq closed higher again. Energy stocks weighed, as crude-oil prices pulled back from their early gains. 

The Greek debate continued as international lenders have asked Greece to come up with EUR3.2 billion in spending cuts for 2012 alone, demanding a reduction in private-sector minimum wages, additional cutbacks in government spending, the layoffs for some 15,000 civil servants in the Greek public sector in 2012, plus steep cuts in supplemental pensions. Understandably this is proving a hard sell to the Greek population. 

Cisco, the IT bell-weather, reported after market beating forecasts on the back of stronger corporate revenues.  

Commodities remained well supported with copper rising 0.9% around a 5-month high, crude-oil finished higher, but gold prices gave back some of their recent gains, while the US dollar eased against the euro and gained on the yen.  

Most of the company groups that make up the S&P index traded higher, with Materials up 0.1%, Energy down -0.3%, Financials up 0.8%, Industrials up 0.2%, Technology up 0.6%, while Consumer Staples were up 0.2%.

The Dow Jones closed up 0.1% (or 6 points) at 12,883, the S&P 500 index was up 0.2% (or 3 points) at 1,349, the Nasdaq ended up 0.4% (or 12 points) at 2,916 and the smaller cap Russell 2000 was up 0.1%.

European Markets

European stock markets eased overnight after opening higher, as the Greek debt bailout negotiations linger longer. The Stoxx Europe 600 index fell 0.2%.

Investor focus continued to be on the Greek debt negotiations, as traders watch for the Greek government’s commitment to the necessary austerity measures, which are a prerequisite for finalising the bailout deal.  

News that the European Central Bank (ECB) is willing to exchange its holdings in Greek government bonds with the European Financial Stability Facility (EFSF) at a discounted price, was well received.  This news boosted banking shares across the region, while mining stocks sold down as BHP Billiton fell 2.3% after reporting a 5.5% decrease in first-half profit due to rising costs, falling commodity prices and production disruptions, and Glencore International and Xstrata edged lower.

In London the FTSE 100 index closed down -0.2% (or -14 points) at 5,876, the German DAX was down -0.1% (or -5 points) at 6,749 while in France the CAC was down -0.1% (or -2 points) at 3,410. Spain was up 0.1% and Italy ended up 1.1%.

Asian Markets

Asian stock markets rose yesterday, as traders followed positive leads from their overseas counterparts.  

Across the region growth sensitive stocks provided suport as the growing optimism for risk appetite pushed a number of key markets to multi-month highs.

The negotiations over the Greek debt restructuring deal continued. In Japan the Nikkei Stock Index rose to its 3-month high, while in Hong Kong the market rose to 6-month highs.  In China the Shanghai Composite bounced to 2-month highs, ahead of Chinese CPI figures out today (12:30pm).  Traders went bargain hunting ahead of the CPI news.  Property and energy stocks also gained for the session.

In China the SSE Composite closed up 2.4% at 2,347, while in Hong Kong the Hang Seng Index was up 1.5% (or 319 points) at 21,018 and in Japan the Nikkei 225 Index closed up 1.1% (or -98 points) at 9,015. The South Korean KOSPI was up 1.1% for the session, while the Indian market up 0.5%.

Commodities

The Dollar Index was higher at 78.60 on a higher Euro, while the Australian Dollar last traded higher at 1.0802. Commodities prices traded higher.

For the session the benchmark crude NYMEX for March delivery was up 0.8% (or -$US0.74) to settle at $US99.15.  Copper prices are seeking a support level as Copper for February delivery was up 0.9% (or 3.4 cents) at $US3.89020.  February gold was down -0.7% (or -$US12.60) at $US1,734.

ASX News Today

ALZ – Australand the property developer has suffered a 15 percent slump in full-year net profit but believes it can improve earnings in 2012 despite difficult market conditions.

ANN – Ansell Ltd says it is rectifying problems with its new business processing system which have resulted in the gloves and condoms supplier losing sales and customers in the key North American market.

BHP – BHP Billiton has reported a slight fall in earnings, but is still a world leader.  Despite the 6 percent drop in half-year profit to $US9.94 billion (its first in over 2 years), BHP made more cash profits in six months than the $US90 billion proposed merger entity of commodities trader Glencore and miner Xstrata would have made in all of 2011.

CBA – CommBank is facing questions by the Queensland government after another glitch left thousands of police and civilian staff unpaid.

EMU – Emu Nickel says it needs to raise $60 million to buy the asset and re-start production in Australia’s sole antimony mine.

GNS – Gunns shares have shot up by more than 50 per cent after the woodchipper said it would make up to $280 million with the issue of new shares to New Zealand billionaire Richard Chandler.

SGT – Singtel says the federal government will consider whether there needs to be changes to copyright laws after being lobbied by Australia’s sporting codes over broadcasting rights.

SUN – Suncorp Group is the latest financial services company to announce redundancies, by sending 65 accounting positions to India.

RIO – Rio Tinto will spend $US3.4 billion expanding its iron ore operations in WA’s Pilbara region.

WEB – Webjet has posted a 17 percent jump in half-year profit as it continues to benefit from Australians travelling overseas in record numbers.

Corporate News

Reporting today: Aquarius (AQP), Bunnings (BWP), Flexigroup (FLX), Rio Tinto (RIO), Tabcorp (TAH), Telstra (TLS) and Stockland (SGP)

Market Summary 

ASX – to open flat
US & UK/Europe – held

Commodities Stock Index  down -0.3%
Gold Stocks Index down -0.3%
Oil Stocks Index down -0.3% 

US ADRs – Broadly Mixed

BHP down -1.3%,  RIO down – 0.5%; AWC down 2.5%
ANZ  up 0.6% & NAB down -0.3%
NEM   down -0.3%, JHX down -1.4%, NWS  up 0.1%

By Michael Hevern
Head of Research

For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

The bulls continue to control the market as we start February, and trading volumes are steadily improving. February is a busy time for Aussie investors as the reporting season gets underway and many stocks will be going ex-dividend in the next six weeks. Over a dozen stocks hand down their interim results on Tuesday.

US investors had their best January since 1997, as the Dow Jones Industrials rose 3.4% for the month, the S&P 500 was up 4%, while the Nasdaq outperformed up 8%. The earnings season has been exceeding expectations and the US financials have held on to their record gains. Manufacturing figures are improving globally and a reading on US manufacturing came in at 54.1 for January (up from 53.1). There is a lot of hype about Facebook’s announcement to IPO to the tune of $5 billion and Apple has been confirmed as the largest corporation on the boards (outsizing Exxon Mobile Corporation).

The Federal Reserve Chairman Ben Bernanke addressed US lawmakers overnight, describing the pace of the US economic recovery as “frustratingly slow” and warned of the importance of addressing the US’s fiscal challenges, highlighting that eurozone sovereign-debt crisis is an example of out-of-control fiscal policies. Bernanke fell short of reaffirming a QE3 package, however. Traders will be focusing now on the US Non-Farm Payroll monthly employment figures out tonight.

European markets are continuing to melt-up, with the European Stoxx 600 index holding at 6-month highs. Globally investor sentiment has been boosted by successful eurozone bond auctions with borrowing costs continuing to pull back, despite the Fitch ratings agency downgrading Italy, Spain, Belgium, Slovenia and Cyprus, and cutting the outlook for Ireland. Sentiment has been buoyed by the news of a successful “fiscal compact”, as all but two of the European Union countries have agreed to sign a treaty designed to stop overspending on the eurozone, and put an end to the bloc’s disastrous debt crisis, while also pledging to stimulate growth across the region.

European shares have continued higher this week after data showed that the ISM manufacturing index climbed to 54.1% in January. Additionally manufacturing data from Germany, the U.K. and the eurozone all boosted sentiment as the German PMI rose to 51.0 in January (up from 48.4), while eurozone PMI rose to 48.8 in January (above estimates of 48.7), while London the UK PMI hit an eight-month high of 52.1 in January (up from 49.7).

The eurozone debt crisis continues to simmer under the surface though, as there is concern that Portugal may be the next in line for a Greek-style debt bailout. The European leaders and Greek bondholders are still in negotiations over the Greek bailout, where Greece has to write down the country’s debt by EUR100 billion. A resolution is essential, as Greece must repay EUR14.5 billion of maturing debt in March to avoid a default.

Asian markets returned from their Lunar New Year holidays and traders played some catch-up. The key data point for the week was the Chinese manufacturing activity figures coming in better-than-expected, but this did heighten concerns that the government may not need to immediately ease its monetary policy. The Chinese official Purchasing Managers Index (PMI) was reported at 50.5 in January, up from 50.3 in December (above expectations of a drop to 49.5). 50 is the level that delineates expansion and contraction. The Chinese market is approaching 2-month highs.

The Aussie market has once again found medium-term support around the 4200 level and has finished higher four of the past five weeks. The market appears to be setting up for a retest of the multi-month highs around 4350, as the upcoming reporting season may well be a trigger for this move. This week we found support around the 4200 level and we are now trading above the 13-day moving average, which sits around 4230. Many of the S&P/ASX sectors are looking to test their 150-day moving averages near term, which could give some pause as these levels have held prices in check for the past six months. The Materials, Industrials and Telecoms sectors are in uptrends, while the Financials and Energy sectors look set be testing overhead resistance. Defensive sectors such as Utilities and Consumer Staples look to be losing favour.

The next dividend season begins in February, so you can look to boost your yields through options strategies. The MDS Financial Advisory Services team can help with these trades. Call me on 1300 610 024 for further information. Investors should also be looking to utilise options strategies to protect their positions, as options are a relatively cheap form of insurance, given the falling volatility of late.

Remain attuned to the news from overseas, particularly from the eurozone, Greece and China in relation to easing policies, and the US with their earnings season. Monitor the performance of the US dollar for a guide to the future direction of commodities and equities prices.

The S&P/ASX 200 index is currently trading at 4255 and is trading above the key pivot level around the 4180. Key levels for the index next week will be 4180 and 4320, with 4230 the key pivot level.

By Michael Hevern
MDS Trading Desk

For regular Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research.

These four investment stakes will be acquired from a listed Australian investment company for a total consideration of $3,160,000. The acquisitions are in line with Mariner’s strategy, outlined by Mariner’s new management team in early 2011, to acquire strategic stakes in the small cap sector.

www.marinercorporation.com.au

http://www.traderdealer.com.au/Fundamentals/mcx

Imdex’s Managing Director Bernie Ridgeway said, “The acquisition of Vaughn by the DHS joint venture provides its customers with a full suite of technologies combined with a global footprint and superior service offering.” “The combined business has excellent growth prospects in the US onshore oil & gas market as well as the offshore and onshore international markets. The combined group will be a significant force in the US$500 million annual oil & gas down hole survey market. “This acquisition supports Imdex’s strategy to grow oil and gas revenue to approximately 30 to 40 percent of Group revenue within the next 3 to 4 years,” added Mr Ridgeway.

The total consideration for the acquisition of Vaughn is US$100 million comprising: US$38 million cash at settlement; US$12 million by way of earn out conditional on reaching certain EBITDA targets;  US$50 million in equity in the merged DHS whereby Vaughn shareholders will retain a 40% equity interest. The total initial cash consideration will be satisfied equally by Imdex and Lime Rock Partners in return for additional equity in DHS, and any earn-out monies will be paid by DHS. Imdex’s share of the initial cash consideration will be funded from cash resources and existing banking facilities.

www.imdexlimited.com

http://www.traderdealer.com.au/fundamentals/imd

Investor sentiment has been boosted by successful eurozone bond auctions, with borrowing costs pulling back despite the recent S&P downgrade of eurozone nations and the EFSF bailout fund. The ECB is reported to be seeking up to $US1 trillion in additional funds to boost financial assistance to the European financial system.

In the US there is talk of QE3 in this presidential election year, and the earnings season has started off well with most companies beating downgraded earnings forecasts.

Commodities have also had a good start to the year with copper outperforming, gaining over 10% for the year. Iron ore and energy stocks have also jumped into 2012.

The Aussie market has once again found support around the 4000 level and appears to be setting up for a retest of the multi-month highs around 4350. Once again we found support around the 4050 level and we’re now trading above the 50 day moving average, which sits around 4150.

The bulls continue to control the market and trading volumes are steadily improving. The calendar year has started off positively, led by the US investors as their earnings season gets going. US financials have had an amazing start to the year with some of the major banking shares up over 20 percent, and even the home builders are joining in this bullish move.

Local investors should be aware that the Chinese market is closed next week for the Lunar New Year and that many of the S&P/ASX sectors are looking to test their 150 day moving averages near term, which could give some pause as these levels have held prices in check for the past six months. The Telecoms and Utilities sectors are in sustained uptrends and the Industrials sector is just breaking into a new uptrend.

The next dividend season begins in February, so you will be well advised to look to options strategies to boost your yields, protect your profits and manage risk. The MDS Financial Advisory Services team can help with this. Call me on 1300 610 024 for further information.

Remain attuned to the news from overseas, particularly from the eurozone and China in relation to easing policies, and the US with their earnings season. Monitor the performance of the US dollar for a guide to the future direction of commodities and equities prices.

The S&P/ASX 200 is up 1.4% so far this week. The index is currently trading at 4218 and is trading above the key pivot level around the 4180. Key levels for the index next week will be 4180 and 4320, with 4230 the key pivot level.

By Michael Hevern
MDS Trading Desk

For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research.

UGL’s Managing Director and CEO, Richard Leupen, said “These recent contract wins within our property services business reflects the momentum we are continuing to build as the emerging leader in global property services. By leveraging our local and global capabilities, we are able to attract new blue-chip clients as well as retain quality projects across our core customer base placing us at the forefront of outsourced property services.”

UGL Limited (UGL) is a global leader in engineering, property services and asset management and maintenance operating in the water, power, transport, resources and property sectors. It consists of four divisions – UGL Infrastructure, UGL Rail, UGL Resources and UGL Services. Headquartered in Sydney, Australia, UGL Limited operates worldwide across 45 countries employing approximately 56,000 people.

www.ugllimited.com

http://www.traderdealer.com.au/fundamentals/ugl

The Aussie market finished the year in the doldrums, down nearly 16 percent for 2011. We now have had two consecutive negative yearly performances, which we have reviewed in more detail in today’s Analyst’s Eye.

Our market appears to have found some short-term support, after the Santa Claus Rally failed to materialise. Once again we found support around the 4050 level and we are now trading above the 50 day moving average, which sits around 4150. Towards the end of last year we described the “line in the sand being around the 4150 level, which remains significant as we trade into the end of the year”, and that “the 4180 pivot level is crucial in the short term”. The 4180 level remains the key pivot level for our market and medium-term resistance sits around 4380.

The bulls have been gaining early control this year. Trading volumes are still dismal, but are expected to pick up from next week.

US investors have led the positive start to 2012 as their earnings season gets underway. The financials sector has had a particularly amazing start to the year with some of the major banking shares up over 20 percent, including Bank of America and Citigroup.

Investors should be looking to utilise options strategies to protect their positions. Options can also be used to protect your profits and manage your risk in this type of market. We will continue to get surprises this year, like QBE’s profit downgrade yesterday, and options can be used to protect you in such situations.

Remain attuned to the news from overseas, particularly from the EU, China, and the US regarding their economic growth and debt issues. Monitor the performance of the US dollar for a guide to the future direction of commodities and equities prices.

The S&P/ASX 200 is up 2% so far this week. The index is currently trading at 4193 and is trading just above the key pivot level around 4180. Key levels for the index next week will be 4080 and 4280.

Use options strategies to reduce your risk in these uncertain times. The MDS Financial Advisory Services team can help with this and we have also discussed some of the strategies in our Analyst’s Eye articles recently. Call me on 1300 610 024 for further information.

By Michael Hevern
Head of Research

For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research.

At this stage the prospects for 2012 remain uncertain. We know that the eurozone will still be troubled by mounting sovereign debt and slowing global growth prospects.

One way to trade into the New Year is to take a more domestic focus trading in stocks with consistent fundamentals that reward shareholders through a strong dividend stream.

We have done a quick review using The Bourse software to search the S&P/ASX 200 for stocks that meet the above criteria and summarised them in the chart below. Note we sorted these stocks by year-to-date performance.

(Click to enlarge)

There are a number of ways to utilise this information for your investing in 2012, including:

• Choose the stocks that have performed the best in terms of YTD return and Yield, such as NIB Holdings, Telstra Corporation and Metcash. This method assumes that these stocks will continue to outperform into 2012.

• Choose the stocks that offer the best in terms of Dividend Yield, such as NIB Holdings, Telstra Corporation, Tatts Group, Myer Holdings and David Jones and Perpetual.

• Choose the stocks that have performed the best in terms of Return on Equity and Yield, such as Telstra Corporation, AMP, Myer Holdings, David Jones and Perpetual. Note this list includes a number of retailers which have the added risk that if the retail environment continues to deteriorate the size of the dividends may be reduced.

• Choose stocks on a contrarian basis, that is those stocks that have been heavily sold off in the past year and trading on single digit PE, on the hope of a recovery into 2012, such as Westpac Bank, ANZ Bank, Myer Holdings and David Jones. Note this is a similar methodology to the “Dogs of the Dow” methodology used by traders in the United States, to select high yielding, underperforming stocks.

So decide on your selection criteria and add some of these stocks to your Christmas hamper. Additionally keep a watchlist of these stocks, so that you can start accumulating if there is another sell-off in the first quarter of the New Year.

While trading in high yielding stocks is not guaranteed to deliver strong returns to investors or traders, dividends do offer a margin of safety, which can in turn boost any capital return on the company’s shares. Dividends also offer Super Funds the additional benefit of franking credits which can boost the portfolio’s annual performance.

Wishing you all a Merry Christmas from the Research Team, and we trust that Santa Claus delivers exactly what you want for Christmas. We will return in the New Year.

Michael Hevern
Investment Adviser

For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

The net proceeds of the sale (approximately ¥1.09 billion2) will be applied to the partial repayment of the Mezzanine Eurobonds. The net proceeds of the sale represents gross sale proceeds less selling costs plus release of capital expenditure reserves held by the trust bank.

The Trust is listed on the Australian Securities Exchange with an indirect interest in a portfolio of 24 Japanese Real Estate investments valued at approximately ¥64.3 billion as at 30 June 2011 (approximately A$805 million)1. The portfolio is diversified by both sector and geography, however, retains a bias to Tokyo.

www.galileofunds.com.au

http://www.traderdealer.com.au/fundamentals/gjt