Group of Australia’s richest individuals and families has lost more than $5 billion combined on the stockmarket in the past 12 months, with shares hit hard by falling commodity prices and uncertain economic conditions.
Billionaire big names such as Andrew Forrest, James Packer and Kerry Stokes have experienced big falls in their shareholder wealth, though Frank Lowy has bucked the trend with his Westfield Corporation shares up about 50 per cent in 12 months.
Mr Lowy has added about $630 million to his share wealth since January last year, during which several of his billionaire peers have watched their wealth slide downwards.
Mining stocks in particular have taken a beating, wiping more than $2.5 billion off the paper wealth of Mr Forrest, the chairman of Fortescue Metals Group.
It has been a similar story for Mr Stokes, the chairman of Seven Group Holdings. The company is a major player in the mining equipment industry through its subsidiary Westrac, which operates Caterpillar dealerships in Australia and China.
SGH shares have fallen about 24 per cent since January 2014, cutting the value of Mr Stokes’ shares by $391 million in that time. The company also owns about one-third of the Australian Securities Exchange-listed Seven West Media.
James Packer has lost about $1.8 billion on paper thanks to a 28 per cent fall in the share price of his Crown Resorts casino and entertainment business.
Crown’s two Australian casinos have been hit by sluggish consumer spending while plans for a $US400 million casino development in Sri Lanka look to have stalled after a change of government.
Other members of the BRW Rich List have seen their wealth hit by a combination of profit warnings or falls from historic highs.
Silviu Itescu, founder of biotechnology company Mesoblast, lost about $131 million from the value of his shareholding in the past 12 months, after several years of gains.
Shares in engineering services firm WorleyParsons took a big hit in late 2013 after a profit fall, and fell throughout 2014 as well. Shares in the firm, chaired by founder John Grill, have also fallen another 10 per cent since the beginning of 2015.
Trading conditions have been tough for WorleyParsons, which derives most of its income from providing services to oil and gas companies.
If falling oil prices force companies in the sector to scale back projects this year, WorleyParsons could take another hit.
Mr Grill has lost almost $200 million from the value of his shares in the past 12 months.
Matt Barrie, the founder and executive chairman of former market darling Freelancer, is likely to lose his position on the Rich List this year.
While Freelancer shares have stabilised after a hitting an all-time low last November, which Mr Barrie blamed on selling too few shares to too many investors in the company’s much-heralded and initially popular 2013 float, the shares are still down 54 per cent in the past 12 months.
That fall has cut about $158 million from the value of Mr Barrie’s shareholding.
He could be replaced on the Rich List by Corporate Travel Management chief executive Jamie Pherous, a former member of the BRW Young Rich list.
Shares in CTM have surged 85 per cent in the last year, adding $113 million to Mr Pherous’s share wealth.
His almost 25 per cent stake in CTM is now valued at close to $250 million, the threshold for entry on the 2014 edition of the Rich List.
Takeover activity or speculation has also boosted the value of shares owned by the Belgiorno-Nettis family in Transfield Services, and James Spenceley in Vocus Communications.
Andrew and Paul Bassat’s shares in online firm Seek increased $112 million in value in the past 12 months, as the company moves towards its 10-year anniversary on the ASX, while Raphael “Ruffy” Geminder’s stake in Pact Group Holdings is up about $90 million in a year.
Elsewhere, after several tough years Gordon Merchant’s stake in embattled surfwear firm Billabong increased by $24 million and a 50 per cent rise in shares in pizza maker Domino’s Pizza Enterprises put $13 million on the wealth of former Young Rich lister Don Meij.
This news story is reprinted from www.smh.com.au
Read more details on Self Managed Superannuation Funds.
Billionaire big names such as Andrew Forrest, James Packer and Kerry Stokes have experienced big falls in their shareholder wealth, though Frank Lowy has bucked the trend with his Westfield Corporation shares up about 50 per cent in 12 months.
Mr Lowy has added about $630 million to his share wealth since January last year, during which several of his billionaire peers have watched their wealth slide downwards.
Mining stocks in particular have taken a beating, wiping more than $2.5 billion off the paper wealth of Mr Forrest, the chairman of Fortescue Metals Group.
It has been a similar story for Mr Stokes, the chairman of Seven Group Holdings. The company is a major player in the mining equipment industry through its subsidiary Westrac, which operates Caterpillar dealerships in Australia and China.
SGH shares have fallen about 24 per cent since January 2014, cutting the value of Mr Stokes’ shares by $391 million in that time. The company also owns about one-third of the Australian Securities Exchange-listed Seven West Media.
James Packer has lost about $1.8 billion on paper thanks to a 28 per cent fall in the share price of his Crown Resorts casino and entertainment business.
Crown’s two Australian casinos have been hit by sluggish consumer spending while plans for a $US400 million casino development in Sri Lanka look to have stalled after a change of government.
Other members of the BRW Rich List have seen their wealth hit by a combination of profit warnings or falls from historic highs.
Silviu Itescu, founder of biotechnology company Mesoblast, lost about $131 million from the value of his shareholding in the past 12 months, after several years of gains.
Shares in engineering services firm WorleyParsons took a big hit in late 2013 after a profit fall, and fell throughout 2014 as well. Shares in the firm, chaired by founder John Grill, have also fallen another 10 per cent since the beginning of 2015.
Trading conditions have been tough for WorleyParsons, which derives most of its income from providing services to oil and gas companies.
If falling oil prices force companies in the sector to scale back projects this year, WorleyParsons could take another hit.
Mr Grill has lost almost $200 million from the value of his shares in the past 12 months.
Matt Barrie, the founder and executive chairman of former market darling Freelancer, is likely to lose his position on the Rich List this year.
While Freelancer shares have stabilised after a hitting an all-time low last November, which Mr Barrie blamed on selling too few shares to too many investors in the company’s much-heralded and initially popular 2013 float, the shares are still down 54 per cent in the past 12 months.
That fall has cut about $158 million from the value of Mr Barrie’s shareholding.
He could be replaced on the Rich List by Corporate Travel Management chief executive Jamie Pherous, a former member of the BRW Young Rich list.
Shares in CTM have surged 85 per cent in the last year, adding $113 million to Mr Pherous’s share wealth.
His almost 25 per cent stake in CTM is now valued at close to $250 million, the threshold for entry on the 2014 edition of the Rich List.
Takeover activity or speculation has also boosted the value of shares owned by the Belgiorno-Nettis family in Transfield Services, and James Spenceley in Vocus Communications.
Andrew and Paul Bassat’s shares in online firm Seek increased $112 million in value in the past 12 months, as the company moves towards its 10-year anniversary on the ASX, while Raphael “Ruffy” Geminder’s stake in Pact Group Holdings is up about $90 million in a year.
Elsewhere, after several tough years Gordon Merchant’s stake in embattled surfwear firm Billabong increased by $24 million and a 50 per cent rise in shares in pizza maker Domino’s Pizza Enterprises put $13 million on the wealth of former Young Rich lister Don Meij.
This news story is reprinted from www.smh.com.au
Read more details on Self Managed Superannuation Funds.
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