Investing in the United States and its markets has become increasingly popular in recent years. It’s easy to understand why. As technology and globalisation become ever more prevalent, we can’t help noticing brands like Apple Inc (NASDAQ: AAPL) and Alphabet Inc‘s (NASDAQ: GOOG)(NASDAQ: GOOGL) Google pop up in the everyday household. Or cars made by Tesla Inc (NASDAQ: TSLA) or even Ford Motor Company (NYSE: F) appear on our roads, perhaps driven by an Uber Technologies Inc (NYSE: UBER) driver. Or apps that Netflix Inc (NASDAQ: NFLX), Walt Disney Co (NYSE: DIS), or Amazon.com Inc (NASDAQ: AMZN) supply on our TVs.

If you dig a little deeper in your own cupboard, you might find Kellogg Company (NYSE: K) cereal or razors made by Procter & Gamble Co‘s (NYSE: PG) Gillette.

American companies are everywhere in Australian life, often hiding under familiar brands. Take the popular ice creams Paddle Pop and Golden Gaytime. They are actually owned by the British-Dutch company Unilever UN (NYSE: UL), listed in the US.

So it’s understandable that Aussie investors might want a slice of the pie. And they do. You can take a look at our coverage of some of the most popular US shares that Aussie are buying.

Recently, we covered how the rising Australian dollar was making investing in US shares more attractive. So if you’ve never taken the plunge across the Pacific, it might be a good time to have a think about it. There’s nothing wrong with our own S&P/ASX 200 Index (ASX: XJO) of course. But the reality is that our market is a minnow in the ocean of global markets. The US markets are, by comparison, a pod of whales. I say a pod because the US has a few different markets you can invest in. Rather than just one major index, like our ASX 200, American investors have a few choices. There’s the old-school Dow Jones Industrial Average (INDEXDJX: .DJI), the uber-popular S&P 500 Index (INDEXSP: .INX), and the tech-heavy NASDAQ-100 (INDEXNASDAQ: NDX).

Buying US shares on the ASX

You can always buy US shares directly through your ordinary broker. Many of the most popular Aussie share brokers, like Commonwealth Bank of Australia‘s (ASX: CBA) CommSec, or National Australia Bank Ltd‘s (ASX: NAB) NABtrade offer the opportunity to buy US shares like Apple or Netflix directly. There are also newer dedicated US brokers, like the popular Stake, which do the same.

However, if you don’t want to buy these shares directly, there are other options. Various managed funds and Listed Investment Companies (LICs) that are listed on the ASX invest in US shares. Some popular examples include the Magellan Global Fund (ASX: MGF) and MFF Captial Investments Ltd (ASX: MFF).

Otherwise, there are always US market-tracking index funds available on the ASX as well. Some examples include the iShares S&P 500 ETF (ASX: IVV), the Vanguard US Total Market Shares Index ETF (ASX: VTS), and the BetaShares Nasdaq 100 ETF (ASX: NDQ). There’s also a couple of currency-hedged options for the investor who wants to take currency fluctuations out of the equation. These include the iShares S&P 500 AUD Hedged ETF (ASX: IHVV) and the BetaShares NASDAQ 100 ETF – Currency Hedged (ASX: HNDQ).

Foolish takeaway

For the investor who wants to branch out and invest in US shares, there are more options available than ever. In the end, it just depends on your individual preferences as to which route you wish to take.

More reading

• These were the worst performing ASX 200 shares last week
• ASX 200 falls 1.2% on Friday
• Boral (ASX:BLD) share price falls on sale of its US bricks business
• UBS unveils its latest ASX “buy” idea for 2021
• US fundie predicts 25% share market gain in 2021

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Ford, Magellan Flagship Fund Ltd, National Australia Bank Limited, Procter & Gamble, Tesla, Uber Technologies, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, Apple, Netflix, Tesla, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Uber Technologies and recommends the following options: short January 2021 $135 calls on Walt Disney, long January 2022 $1920 calls on Amazon, long January 2021 $60 calls on Walt Disney, and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Apple, BETANASDAQ ETF UNITS, Netflix, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are at least three reasons why Brickworks Limited (ASX: BKW) shares are a compelling investment option.

Reason one: A construction recovery in Australia

Whilst the building products divisions may not make up a majority of the underlying value of Brickworks shares, the performance of its construction divisions are important for the Brickworks share price.

In recent months Brickworks has seen a recovery in the Australian construction industry after the initial impacts of COVID-19.

According to Brickworks’ most recent trading update, in Australia the company has made a strong start to FY21 with first quarter earnings well ahead of the prior corresponding period. Its home builder customers have a solid pipeline of work for the remainder of the financial year, underpinned by various government stimulus measures. Brickworks is making progress on its $75 million Austral Masonry plant as well as its $125 million face brick plant at Horsley Park.

However, there isn’t the same sort of recovery going on in the US. COVID-19 daily infections are above 200,000 in the US and the construction industry is being impacted. Sales have been below expectations in recent months with a number projects being deferred by state authorities due to financing concerns, as well as disruptions to manufacturing operations.

Reason two: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares

Soul Patts is an investment conglomerate that has been listed since 1903. Brickworks has owned shares of Soul Patts for decades at this point.

Soul Patts has a diversified portfolio of assets. Some of its positions include TPG Telecom Ltd (ASX: TPG), Brickworks, New Hope Corporation Limited (ASX: NHC), Australian Pharmaceutical Industries Ltd (ASX: API), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT). It also has private investments in areas like financial services, resources and swimming schools. 

Some of Soul Patts’ most recent investments have been focused on agriculture. It also recently tried to acquire aged care operator Regis Healthcare Ltd (ASX: REG), though its public offer was knocked back quickly.

Soul Patts makes up a big chunk of the underlying Brickworks asset value. The Soul Patts share price has risen by 17% over the past two months and by 54.8% over the last six months.

Reason three: A growing industrial property trust

Brickworks owns a 50% stake in an industrial property trust along with real estate giant Goodman Group (ASX: GMG).

The idea of the trust is for Brickworks to sell its excess land that it no longer needs into the trust and then industrial properties (like warehouses) are built on that land.

The warehouses can then benefit from long-term capital growth whilst also paying strong annual rental profit to Brickworks and Goodman.

The trust’s net asset growth has helped push the Brickworks share price higher over the years.

At the moment the trust is working on building two huge, high-tech warehouses for Coles Group Ltd (ASX: COL) and Amazon. Once the warehouses are completed it’s expected to increase the gross assets of the industrial property trust to at least $3 billion and it will grow the net profit distributions from the trust by at least 25%.

Brickworks said that the Amazon facility is due to be completed in September 2021. The construction of the Coles distribution warehouse is expected to commence in early calendar 2021.

The building products business said that it has sufficient remaining land to provide at least a further five-year development pipeline.

At the current Brickworks share price it offers a trailing grossed-up dividend yield of 4.3%. It’s also priced at 18x FY21’s estimated earnings.

More reading

• Top ASX shares to buy in 2021
• ASX 200 up again on Wednesday
• Washington H. Soul Pattinson (ASX:SOL) share price rises 2% after upbeat AGM
• 3 reasons why Soul Patts (ASX:SOL) is a great ASX dividend share
• Got money to invest? Here are 3 ASX dividend shares to buy

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Synlait Milk Ltd (ASX: SM1) share price was trading down almost 2% at $4.61 this afternoon when the company requested a trading halt of its shares on the ASX.

Today’s drop follows a decrease of nearly 6% in the Synlait share price yesterday.

So what’s happening?

Yesterday’s share price drop prompted Synlait to release an announcement to the market. In that announcement, Synlait noted that one of its biggest customers, the a2 Milk Company Ltd (ASX: A2M), had entered into a trading halt after becoming aware of information affecting its previously issued guidance.

Put simply, the Synlait share price has been impacted by what’s happening to its customer, a2 Milk.

The a2 Milk shares returned from trading halt today, with its share price crashing 23% almost immediately after the company released a revised trading update.

a2 Milk advised that it had experienced a “more significant and protracted disruption in the daigou channel than expected”. Given this channel represents a major proportion of its infant nutrition sales in its ANZ business, this has had a negative impact on its sales.

Correspondingly, a2 Milk now expects to report first half revenue of NZ$670 million with an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 27%. This compares to its previous guidance of NZ$725 million to NZ$775 million.

For the full year, revenue is expected to be in the range of NZ$1.4 billion to NZ$1.55 billion with an EBITDA margin of 26% to 29%. As a comparison, its previous guidance for the full year was revenue in the range of NZ$1.8 billion to NZ$1.9 billion with an EBITDA margin of 31%.

With a2 Milk being one of Synlait’s biggest customers, the revised earnings will mean that Synlait will also have to revise its own earnings.

Synlait says that it will make an announcement to the market in the next few days.

About the Synlait share price

The Synlait share price has lost around 45% of its value this year. At the current share price, it has a mountain to climb to reach its 52-week high of $8.80.

The company commands a market cap of $1 billion.

More reading

• ASX 200 falls 1.2% on Friday
• Why the a2 Milk Company (ASX:A2M) share price crashed 26% lower today
• 5 things to watch on the ASX 200 on Friday
• ASX 200 up 0.7%: Zip capital raising, A2 Milk trading halt, Sydney Airport dividend update
• Why the a2 Milk Company (ASX:A2M) share price is in a trading halt

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Volpara Health Technologies Ltd (ASX: VHT) shares failed to take off today despite the company revealing a major United States contract partner. Despite a lift in trading this afternoon, the Volpara share price has closed at $1.31, the same price it opened at this morning. By comparison, the All Ordinaries Index (ASX: XAO) has fallen by 1% in trading so far today.

Today’s announcement may come as welcome news for shareholders, with the Volpara share price having seen little movement recently. In fact, the ASX health share is trading at the same level it was this time 8 months ago. Furthermore, coronavirus-related issues have slowed down the company’s sales pipeline, causing the Volpara share price to slump by nearly 30% since the start of the year.

Major contract renewal

This afternoon, the Volpara share price edged higher after the company revealed that the major customer contract it renewed and extended in the second quarter of FY21 was with US Radiology Group.

The contract is for a 5-year term for delivery and ongoing use of the Volpara Breast Health Platform.

US Radiology is one of the largest radiology companies in the US, comprising more than 280 radiologists. The physician-led group aims to bring operational expertise together with state-of-the-art technology and infrastructure. 

Management comments

Volpara CEO Dr Ralph Highnam stated:

We are now pleased to be able to announce publicly that the major customer that moved to our integrated breast care platform is US Radiology, a very ambitious and acquisitive group in the US.

Our partnership will see Volpara’s Breast Health Platform driving the delivery of high-quality breast imaging outcomes and supporting patient-first healthcare. This is an important customer win and we expect our relationship to grow, in line with US Radiology’s rapid expansion.

About the Volpara share price

Founded in 2009 on research conducted at Oxford University, Volpara has since grown into a notable health technology company. Its software and services are used by customers in 39 countries and are supported by numerous patents and trademarks, including FDA clearance.

The company aims to prevent advanced stage breast cancer by using ‘Volpara Science’, a set of clinically validated algorithms that use x-ray physics and artificial intelligence to assess breast tissue composition.

The Volpara share price has had a challenging year, however, falling by 26% since this time last year.

More reading

• 3 quality SaaS ASX shares to buy
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• Volpara (ASX:VHT) share price falls on half-year results

Daniel Ewing owns shares of Volpara Health Technologies Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The real estate sector started 2020 on a rather high note, but that all changed as the COVID-19 pandemic swept across the world, including Australia.

In fact, real estate was one of the worst performing sectors in the first half of the year.

The ASX 200 Real Estate Index (ASX: XRE) however, has rebounded strongly in the second half, as confidence seeps back to the market. Overall, the index is only down by 11% for the year.

Some real estate companies have even made the most of the situation, with strong share price returns over the year.

Here we’ll look into the 5 best performing ASX real estate shares in 2020.

Company	1-year share price return	Current share price	Market cap
1. Lifestyle Communities Limited (ASX: LIC)	43%	$12.64	$1.3 billion
2. Goodman Group (ASX: GMG)	36%	$18.82	$34.8 billion
3. Charter Hall Group (ASX: CHC)	30%	$14.72	$6.9 billion
4. Centuria Capital Limited (ASX: CNI)	14%	$2.52	$1.5 billion
5. Ingenia Communities Group (ASX: INA)	5%	$4.87	$1.6 billion

 

1. Lifestyle Communities

You may not have heard of this company, but the Lifestyle Community share price has been the best performer in the ASX real estate sector so far in 2020.  Although not part of the elite ASX 200 club, the company still commands a hefty market cap of over $1 billion.

The Lifestyle Communities share price has returned a cool 40% this year for its shareholders. This is after dropping by 43% in March at the height of the pandemic-induced market panic. So technically, the share price has returned 154% since March.

This means that if you had invested $10,000 in Lifestyle Communities shares on 23 March, your money would be worth $25,400 today.

So what does Lifestyles Communities do? Essentially, it’s a group 4,494 retirement villages, all located in Victoria, for people aged 50 and over.

However, the business doesn’t operate like a typical retirement village — instead it operates under a land lease model. Under the land lease model, homeowners own their home while leasing the land. In a retirement village on the other hand, you only have a license right to occupy a home.

The business has boomed this year due to retired or semi-retired people choosing to purchase and move into resort-like villages, where all necessities are available within the confines of the complex — eliminating the need to make trips to the grocery stores.

In its latest update to the market, the company said its full-year profit after tax for FY20 actually decreased from $55.1 million to $42.8 million.

It will be interesting to see how the Lifestyle Communities share price fares next year when the pandemic subsides.

2. Goodman Group

This gargantuan company is the biggest real estate company in Australia, hands down. 

The Goodman share price has gained 36% over the course of a year, reaching its all-time high of $20.07 in early November.

Goodman is one of the world’s premier developers and managers of industrial property projects and investments. The group was co-founded in Australia by Gregory Goodman, who remains CEO today.

It operates a unique real estate portfolio with a high concentration of industrial properties, compared to the more ‘traditional’ office and retail REITs. 

Goodman manages projects during build, charging development and leasing fees. Then it manages the completed assets, charging management fees. The company usually then holds a minority stake in most of its completed projects, earning potential upsides.

For FY20, the company reported an operating profit of $1,06 billion, up 12.5% on FY19. The solid result was mainly fuelled by strong demand for well-located industrial properties, such as warehouses for booming businesses like e-commerce.

3. Charter Hall

The Charter Hall share price rounds out the top 3 performers in the real sector this year, returning 30% for shareholders. The Charter Hall share had at one point plunged by as much as 55% in March, when it was trading at a 52-week low of $4.93.

The company owns some well-known retail shopping centre properties across regional Australia, including  Secret Harbour Square in Western Australia, Rockdale Plaza in New South Wales, and Campbellville Plaza in Victoria.

The company also invests in unlisted property investments, as well as listed REITs. It typically co-invests in its own funds, aligning itself with its own funds management customers. This gives Charter Hall exposure to a diversified property portfolio, and the relatively predictable rental income accounts for nearly a third of the group’s earnings.

Charter Hall reported announced solid full year results for FY20, with operating earnings topping $322.8 million, up 46.3% from Fy19.

The company followed that up with a strong trading update for the first-quarter of FY21, where it reported $51.7 billion total assets under management, with a stable occupancy rate of 97.8%.

4. Centuria Capital

Centuria is another company on the list that has not made the cut for the ASX 200 club, however it still commands a market value north of $1 billion.

The Centuria share price has returned 14% for the past year.

This share is basically a pure REIT play, and through its REIT investments, the company owns a diversified portfolio in Australia as well as across the Tasman.

The company’s funds have made some major acquisitions this year, fuelled by extra low interest rates. 

Its Centuria Industrial REIT (ASX: CIP) for example, is Australia’s largest domestic, pure play listed industrial REIT.

This fund expanded its portfolio with over $300 million of acquisitions in FY20. Meanwhile, the company’s Centuria Office REIT (ASX: COF) also expanded its portfolio with $637 million of acquisitions in 2020.

As a result, for FY20 the company reported an increase in assets under management of 52% to over $9.4 billion, while its cash earnings per share was 12 cents, ahead of 11.5 cents in its earlier guidance.

5. Ingenia Communities

Rounding out the top 5 real estate shares in 2020, the Ingenia share price has returned a rather modest 5% for investors. 

This is despite the company reporting record FY20 earnings before interest, tax and depreciation and amortisation (EBITDA) of $71.9 million, which was up 7% on previous year. This bottom line result was based on a top line revenue of $244 million.

Ingenia may not have received widespread coverage in the media, but it’s a sizeable company with a market cap of $1.6 billion.

What does Ingenia do? It’s a property company that owns, operates and develops a portfolio of lifestyle and holiday properties across urban and coastal markets. The portfolio also includes parks, cabins, and camping areas.

Just like Lifestyle Communities, Ingenia has been able to take advantage of people’s preference to move away from major city centres during the pandemic.

It remains to be seen how the Ingenia share price will perform when the pandemic is declared over.

More reading

• Here’s what these popular ASX dividend shares plan to pay investors in 2021
• Charter Hall (ASX:CHC) share price higher on 555 Collins Street update
• 2 fantastic blue chip ASX shares to buy today
• Why are ASX property shares on the rise today?
• 2 of the best ASX shares for your retirement portfolio

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Hills Ltd (ASX: HIL) share price has slipped today as the company announced impairment plans and a trading update for FY21. At the time of writing, the Hills share price is down 2.8% to 17 cents.

Operating across Australia and New Zealand, Hills provides health solutions including nurse call solutions, patient engagement systems and wi-fi networks in hospital and aged care facilities. The company also operates a distribution division, working in integrated security, information technology and technical services.

What did Hills announce?

In today’s release, Hills advised that it will make financial amendments as it seeks to re-organise its accounting books. The assessment follows the group’s completion of the external foreign exchange review. 

As a result, Hills will make one-off adjustments of $4.9 million mostly comprising non-cash items. The revised figures will be implemented in the first-half of FY21, ending 31 December.

The impairments include:

• Write-off of assets relating to exited businesses – $1.7 million;
• Write-off of assets relating to exited vendor arrangements – $0.4 million;
• Reassessment of valuation of aged, slow-moving and demonstration stock – $1.4 million;
• Reassessment of asset lives and property settlements – $0.86 million; and
• Write-off of NZ deferred tax assets arising from the current poor trading conditions – $0.57 million

While these write-offs have been necessary, Hills said that its Australian distribution business was beginning to improve. This comes as the company experienced tough first quarter trading conditions due to COVID-19.

Furthermore, its Australian health solutions business has returned to normal trading levels during the current quarter.

In its New Zealand operations, Hills is still facing headwinds, as announced in its annual general meeting (AGM) early last month. It does not envisage recovery in the 2021 financial year – as opposed to its Australian business.

Previously, the company said its objective was to deliver shareholders a full-year net profit in FY21. However, due to asset impairments and mixed trading conditions, the company does not expect to meet this. Instead it will focus on delivering a second-half net profit.

Hills is scheduled to release its first half FY21 results early 2021, along with a further trading update.

What did management say?

Commenting on the accounting adjustment, Hills CEO and managing director David Lenz said:

While it is disappointing to have to recognise further one-off adjustments to our asset values, we are pleased that the underlying businesses are recovering from the impact of COVID-19 and remain well positioned to capitalise on market opportunities in the second half as Australia emerges from the pandemic and our cash position remains strong.

Hills share price summary

The Hills share price has been hit hard over the last 12 months, falling almost 50% year-to-date. The company reached a 52-week high of 48.5 cents in February.

More reading

• ASX 200 falls 1.2% on Friday
• Boral (ASX:BLD) share price falls on sale of its US bricks business
• Not even this could stop the Boral (ASX:BLD) share price tumbling lower
• 2 ASX dividend shares for 2021’s zero interest rate world
• Alliance Aviation (ASX:AQZ) share price soars to new all-time high

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) fell by around 1.2% today to 6,676 points.

Here are some of the highlights from the ASX today:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price fell by 23% today after the company adjusted its guidance for the FY21 first half and full year results.

A2 Milk first reminded investors that it has been saying for months it was suffering from lower sales in Australia because of daigou sales reductions with reduced tourism from China and international student numbers.

The company was previously guiding that there would be a significant increase of revenue in the second half.

However, today the company said that the disruption in the daigou channel, which represents a significant proportion of infant nutrition sales in the ANZ business, has proved to be more significant and protracted than previously anticipated. Whilst this was predominately affecting infant nutrition sales, sales in other nutritional segments have now also been impacted.

Whilst A2 Milk had expected some disruption in the FY21 second quarter, the recovery hasn’t been as much as expected. It’s also seeing a higher level of disruption to the cross border e-commerce channel (CBEC). The daigou channel is reportedly important for stimulating demand across multiple channels, including CBEC.

It said that the performance in the 11/11 online sales event showed year on year growth, but sales in the CBEC channel in the period after that event was below expectations.

A2 Milk is now expecting the sales for both daigou and CBEC channels for the rest of FY21 to be materially lower. The company intends to focus further on reactivating the daigou channel in the second half.

On the positive side of things, the company said its performance in Chinese ‘mother and baby’ stores remains very strong and it’s expecting revenue growth of 40% in the first half compared to the prior corresponding period. It also said that the liquid milk businesses in Australia and the USA are performing well with growth compared to the FY20 first half.

In the first half of FY21 A2 Milk is expecting revenue of NZ$670 million, with second quarter revenue stronger than the first quarter. The earnings before interest, tax, depreciation and amortisation (EBITDA) margin for the first half is now expected to be in the order of 27%.

For the full year, the revenue is now expected to be between NZ$1.4 billion to NZ$1.55 billion. The EBITDA margin for FY21 is expected to be between 26% to 29%.  

Mesoblast Limited (ASX: MSB)

The Mesoblast share price was another to fall heavily today. It dropped by around 35% after giving an update about its trial of remestemcel-L in ventilator-dependent patients with moderate to severe acute respiratory distress syndrome (ARDS) due to COVID-19 infection after the Data Safety Monitoring Board (DSMB) performed a third interim analysis on the trial’s first 180 patients.

The company said that the trial was powered to achieve a primary endpoint of 43% reduction in mortality at 30 days for treatment with remestemcel-L on top of leading care in a trial of 300 patients.

The projected mortality reduction was based on pilot data observed during the initial stages of the pandemic when control mortality rates were exceedingly high and prior to new evolving treatment regiments that have reduced disease mortality in ventilated patients.

The DSMB reported that there were no safety concerns and noted that the trial is not likely to meet the 30-day mortality reduction endpoint at the planned 300 patient enrolment. The DSMB recommended that the trial complete with the currently enrolled 223 patients, and that all be followed-up as planned.

Australian Ethical Investment Limited (ASX: AEF)

The Australian Ethical share price fell 1.2% after it gave a profit update today. It said that it’s expecting underlying net profit to be between $4.6 billion and $5.1 billion, which would be a mid-point increase of 11% for the six months ending 31 December 2019.

It said that funds under management (FUM) increased to $4.92 billion at 30 November 2020, up 14% from 30 September 2020 and up 21.6% since 30 June 2020.

More reading

• Boral (ASX:BLD) share price falls on sale of its US bricks business
• UBS unveils its latest ASX “buy” idea for 2021
• US fundie predicts 25% share market gain in 2021
• The Costa (ASX:CGC) share price is slipping lower today. Here’s why
• Why the a2 Milk Company (ASX:A2M) share price crashed 26% lower today

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Boral Limited (ASX: BLD) share price lost ground on Friday after it announced the sale of its US joint venture bricks business.

The Boral share price tumbled 2% to $4.82 compared to the 1.2% decline in the the S&P/ASX 200 Index (Index:^AXJO) today.

The building products supplier announced in the closing moments of trade that it struck an agreement with its JV partner to sell the Meridian Brick business to Wienerberger for US$250 million.

Boral’s divestment yields small profit

Boral will receive half of the proceeds, which should translate to around a $10 million pre-tax profit for the group.

The divestment is subject to the usual conditions and regulatory approvals, but I don’t see any real impediments to the deal. The transaction should be finalised in FY21.

The sale won’t come as any real surprise. Boral’s current chief executive, Zlatko Todorcevski, is tasked with undoing his predecessor’s disastrous US expansion.

More transactions expected?

“The agreed sale represents a fair value for the business and reflects its improved performance,” said Todorcevski.

“The divestment of Meridian is a further step in Boral’s portfolio review works. It helps to streamline our US business and allows us to further focus on the improvement initiatives underway in the remaining businesses in Boral North America.”

Takeover rumours continue to run hot

The Boral share price performed well recently as bargain hunters bought into the stock on turnaround hopes.

Speculation that it’s a takeover target didn’t hurt either as Seven Group Holdings Ltd (ASX: SVW) appeared on its share register.

However, the Boral share price is still lagging the sector. While the BLD share price gained 8% in 2020, which is ahead of the ASX 200’s flat performance, its peers have outperformed.

Boral share price still lagging despite divestments

The James Hardie Industries plc (ASX: JHX) share price surged 35%, while BlueScope Steel Limited (ASX: BSL) share price and CSR Limited (ASX: CSR) share price gained 18% each since January.

However, Boral’s share price rally is likely to extend into 2021. The large pipeline of construction projects over the few years bodes well for the industry.

Besides, with eager bidders lurking in the shadows, the stock is unlikely to tumble by too much even as the post-COVID‐19 recovery is unlikely to be smooth.

More reading

• ASX 200 falls 1.2% on Friday
• Not even this could stop the Boral (ASX:BLD) share price tumbling lower
• UBS unveils its latest ASX “buy” idea for 2021
• US fundie predicts 25% share market gain in 2021
• The Costa (ASX:CGC) share price is slipping lower today. Here’s why

Motley Fool contributor Brendon Lau owns shares of BlueScope Steel Limited, James Hardie Industries plc, and Seven Group Holdings Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Boral Limited (ASX: BLD) share price was out of form on Friday and dropped lower with the rest of the share market.

Not even a late announcement could stop the building materials company’s shares from falling 2% to $4.82.

What did Boral announce?

This afternoon Boral announced that together with its joint venture partner, an affiliate of Lone Star Funds, it has agreed to sell the North American based Meridian Brick business to Wienerberger.

According to the release, the parties have agreed a consideration of US$250 million, which remains subject to customary adjustments. This equates to US$125 million for Boral’s 50% share, prior to any adjustments.

Subject to exchange rates and final adjustments, the company is expecting to report a small pre-tax accounting profit on sale of approximately A$10 million at closing.

Though, it has warned that the transaction is subject to various closing conditions and regulatory approvals. If all goes to plan, the parties are targeting completion in FY 2021.

Goodbye bricks.

The sale of the Meridian Brick business is the final step in Boral’s exit from brick operations globally.

Boral’s CEO and Managing Director, Zlatko Todorcevski, commented: “In recent years Boral has divested its interest in bricks in Australia and since forming the bricks joint venture in the US with Lone Star in 2016, the plan was to ultimately prepare the business for sale.”

“As part of this process, Meridian’s leadership was refreshed with the appointment of a new CEO in December 2018, and a stronger focus on improving performance,” he added.

Mr Todorcevski believes that Boral has received is a good price for the business and that it “reflects its improved performance.”

What now?

The CEO expects the divestment to allow the company to focus on improving the performance of other areas of the business.

“The divestment of Meridian is a further step in Boral’s portfolio review works. It helps to streamline our US business and allows us to further focus on the improvement initiatives underway in the remaining businesses in Boral North America,” he concluded.

More reading

• Are ASX stocks in for an M&A frenzy in 2021?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With Australia’s interest rates effectively zero – or even negative – ASX dividend shares are in the spotlight for 2021.

We’ll get to 2 ASX income shares you may want to investigate further for your own portfolio shortly.

But first, let’s look at why the real returns you’re likely to get on your cash savings are actually negative.

On 3 November, the Reserve Bank of Australia (RBA) took the unprecedented step of cutting the official cash rate to a rock bottom 0.10%.

Governor Philip Lowe indicated the bank has no intention to reduce rates into the negative range. But the RBA’s $100 billion quantitative easing (QE) program is intended to keep a tight cap on borrowing costs. And hence on what you’ll receive in your role as lender from your term deposit account.

As it stands, you’ll be hard-pressed to get more than 0.5% in interest on a 1-year term deposit. Or $500 per year on a $100,000 deposit.

If that doesn’t sound like much, that’s because it isn’t.

Unfortunately, that figure is your nominal return. Meaning it doesn’t take inflation into account.

Even if inflation is only 1% in 2021 (well below the RBA’s target of 2–3%), your real (inflation adjusted) return from that term deposit would be –0.5%. In other words, by the end of 2021 the purchasing power of the by then $100,500 in your term deposit will be around $500 less than it was on the first of the year.

And if you’ve been holding your breath waiting for cash savings rates to go higher, you can let that breath out.

The odds of that happening are slim to none.

Low rates to the horizon

Australia may be isolated geographically. But when it comes to the RBA’s cash rate, the bank’s decisions are intricately entangled with the world’s other leading central banks.

And none appear to have any intention to raise interest rates in the foreseeable future.

On Wednesday, the US Federal Reserve, the world’s most watched central bank, doubled down on its own QE policies to keep borrowing rates low and money flowing through the system.

Fed Chair Jerome Powell said the bank will continue its US$120 billion (AU$159 billion) of monthly bond purchases until inflation and employment demonstrate “substantial further progress”.

The European Central Bank (ECB), the Bank of Japan (BoJ) and most every other major central bank across the world is firmly on the same low interest rate track.

Not only is this likely to remain the case throughout 2021, but the RBA has previously stated it’s likely to keep the cash rate at historic lows for as long as 3 years.

And on 1 December Lowe said:

In Australia, the economic recovery is underway, and recent data has generally been better than expected. This is good news, but the recovery is still expected to be uneven and drawn out, and it remains dependent on significant policy support.

This ongoing “significant policy support” won’t be music to the ears of Australian savers. But it’s certainly good news for borrowers. The bigger your debts, the better that news.

And no one in Australia is more indebted than our own federal government. Yet another reason to expect lower interest rates for longer.

From the Australian Financial Review:

The federal government estimates it will save an extra $457 million in interest payments over the next four financial years following the Reserve Bank’s massive government bond buying program that has been driving borrowing costs down…

In this financial year the government will save $56 million in interest payments on its $852 billion in debt compared to what it was projecting just two months ago.

The outlook for ASX dividend shares

Before moving on to ASX income paying shares, a reminder on some widely held general financial advice.

Cash in the bank is undoubtedly safer than money invested in shares. Particularly if your bank is covered by the Federal Government’s Deposit Guarantee. This covers up to $250,000 per authorised deposit-taking institution should the bank run into solvency issues.

You should also keep enough cash on hand to cover several months of living expenses should your other income sources dry up, plus enough to meet any emergency spending issues.

With that said, the outlook for ASX dividend shares in general for 2021 is looking up.

According to Shane Oliver, Head of Investment Strategy & Economics and Chief Economist at AMP Capital, 2021 is likely to see ASX companies returning more money to their shareholders via dividends.

Speaking at AMP’s webinar earlier this month, Oliver noted:

As we go through 2021, I reckon the dividends will start to go back up again… We’re looking at dividend payments on the Aussie market over the next 4 months of somewhere between 4–4.5% [up from the recent 2.9%]… Our indicators for Australia are now looking healthier than they are in Europe and the US.

2 ASX dividend shares for 2021’s zero to negative rate world

There are a number of quality shares on the ASX paying regular dividends.

Here are 2 that may be worth investigating further.

First up is Australia’s largest rail-based transport business, Aurizon Holdings Ltd (ASX: AZJ).

Aurizon’s share price still hasn’t recovered from the pummeling it took during the initial COVID-driven market selloff, which saw shares fall 35%. Year-to-date Aurizon’s share price remains down 22%.

Now I hold no opinion as to where Aurizon’s share price is heading in 2021. But if you’re after extra income from your ASX shares, Aurizon pays a dividend yield of 6.7%, 70% franked.

The second ASX dividend share you might want to look into further is Rural Funds Group (ASX: RFF). Rural Funds is a real estate investment trust (REIT) that focuses on agricultural assets across Australia.

The Rural Funds’ share price also took a steep hit from the February and March market selloff. But shares have rebounded strongly, and Rural Funds’ share price is now up 34% year-to-date.

Again, whether or not it continues that strong performance in 2021 is beyond the focus of this article. But if it’s real, inflation beating income you’re after, Rural Funds pays a dividend yield of 4.3%, unfranked.

More reading

• 3 top ASX dividend shares to buy
• 2 ASX dividend shares with attractive yields
• These ASX dividend shares will help you overcome low interest rates
• 5 ASX dividend shares to buy for income in 2021
• Forget term deposits and buy these ASX dividend shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Aurizon Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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