Independence of Financial Research
The following information applies to financial research, published by the Research department of Jarden Australia Pty Limited or a related body corporate, in compliance with laws, regulations, and relevant international standards applicable to research. This information summarises the internal procedures and policies, including standards of good practice, designed to assist in identifying conflicts of interest that might affect the impartiality of research.
Our ethical values
Financial research analysts are required to observe high standards of integrity and ethical behaviour. Each employee is obliged to adhere to the ethical values defined in our Code of Conduct. Among others, contained therein are the following guiding principles:
- Abiding by laws, rules and regulations (including insider trading laws) as well as the internal policies of the Jarden
- Being familiar with guidelines, manuals and emerging best business practices relevant to their duties and implementing them conscientiously to the best of their
- Acting at all times in good faith, responsibly, with due care, competence and diligence, and without any misrepresentation of material
- Acting at all times in an honest and ethical way, including the ethical handling of actual or apparent conflicts of
- Acting objectively, without allowing his or her judgment to be
The research department is organisationally, hierarchically and functionally separate from the Investment Banking division, the securities trading (incl. proprietary trading) and sales department and advisory teams.
Research analysts may not accept any requests to produce research reports for which the result has been defined in advance and may not accept privileges, gifts or other favours offered to them by companies they analyse which are material or which may or which may be seen to influence that analyst. Analysts must disclose all material gifts or privileges to Compliance so that they are recorded on the Soft Dollar Register. Similarly, they may not give any promises to publish positive research reports, a specified rating or a specified price target. Research analysts may not hold executive office or have some other significant influence at the company being analysed and are generally prohibited from acquiring, either directly or via third parties for their own account any securities of the company being analysed.
Jarden Australia’s policy is only to publish financial research that is impartial, independent, clear, fair and not misleading. Research analysts are required to ensure that they have a reasonable basis for their analysis and recommendations.
Information that contains an indication of past performance of a relevant investment or a financial index, includes appropriate performance information which covers at least the immediately preceding three years, or the whole period for which the investment has been offered, or the financial index has been established if less than three years. In every case that performance information is based on and shows complete 12- month periods.
Compliance monitors the adherence to laws, regulations, directives and internal procedures regarding the publication of research reports. Compensation of our research analysts is not dependent on individual transactions effected by the Investment Banking business, and the best interests of the client should supersede analysts’ personal interests. Hence, analysts are not allowed to derive any personal advantage from their research at the expense of the clientele.
The research analyst may neither distribute research results internally (e.g.to the Investment Banking Division) nor externally (e.g. to the analysed company) in order to have the report verified or even approved prior to publication, other than in accordance with our Research Policy and Procedure. All research reports are available electronically and in some cases in printed form. Research is communicated to all the recipients in a customer category (recipient group of wholesale clients) inside and outside Jarden Australia and its related bodies corporate at the same time.
Managing conflicts of interest
Jarden Australia has systems and controls for the identification, avoidance, management or disclosure of conflicts of interests faced by research analysts in preparation of financial research.
The types of conflicts considered could include conflicts between the Research department at Jarden Australia and the Investment Banking Division, between Jarden Australia and its related bodies corporate’s clients and their own interest (such as proprietary trading and investment banking activities) and the personal interests of Jarden Australia and its related bodies corporate officers and employees.
Jarden Australia’s and its related bodies corporate’s policies, controls and procedures in this regard include:
- Internal guidance and regular training on the identification of possible issues of conflict as and when they arise;
- Maintenance of robust information barriers between different parts of the organisation to restrict the flow of material non-public information to avoid inadvertent spread or misuse;
- Escalation procedures for ensuring that issues identified are referred to and considered at the appropriate level within the organisation;
- Editorial and peer review process of research prior to publication;
- Monitor potential conflict arising out of publication of research before, during and after Investment Banking transactions;
- Exclusion on the preparation of research on companies where Jarden Australia or a related body corporate owns a majority interest;
- Compliance with rules on personal account dealing; and
- General prohibition on the trading activity of research analysts in any securities of the companies in their research
Jarden Australia discloses in its research reports, in accordance with applicable law and regulation, details of interests, including those of Jarden Australia and its affiliated companies and those of the analyst, that are or may be relevant in the context of the report.
Following are explanations of research methodology used in equities. All recommendations are reviewed and communicated on an ongoing basis. Our policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the market that may have a material impact on the research views or opinions stated herein.
At a stock level, the analysis implies both, qualitative and quantitative factors. The recommendation takes into account the relative attractiveness of individual stocks within the sector/industry with respect to several factors such as earnings growth, profitability, balance- sheet structure and valuation. The valuation methodologies applied include discounted cash flow calculations (DCF), valuation multiples (e.g. price/earnings, EV/EBITDA, price/book value) as well as sum-of-the-parts valuation.
Equity Ratings and recommendations
The stock recommendations are "Outperform", "Underperform" and "Neutral" and are dependent on the expected absolute performance of the individual stocks on a 6–12+ month investment horizon.