Market Commentary

Anton Murray - Market Commentary

‘Green’ investing won’t sacrifice dividends: AXA IM

Posted by Anton Murray Consulting on . Posted in Investment Banking MC, Investment Banking News, Market Commentary, News

InvestorDaily

Investors looking to implement low-carbon strategies can do so without affecting their dividend payouts, says AXA Investment Management Rosenberg Equities. Speaking in Sydney yesterday, AXA IM Rosenberg Equities head of sustainable investing Kathryn Mohan McDonald pointed to research conducted by the company that showed high dividend payout did not depend on investing in major polluters. “If I create the same quintile portfolios but without those largest 75 polluters, what would that do to my payout ratios?” Ms McDonald said.

“The fact of the matter is that it does very, very little to the payout profile. “The carbon footprint, for example, is improved by 50 per cent, but as it turns out, it doesn’t really make much of a difference in terms of my ability to find an attractive average dividend payout.” She said contrary to popular belief, a “green focus” would not “interrupt” investors’ search for attractive dividend yield.”

The rest of this article can be found at investordaily.com.au.

SSGA divests tobacco, weapons shares

Posted by Anton Murray Consulting on . Posted in Investment Banking MC, Investment Banking News, Market Commentary, News

InvestorDaily

State Street Global Advisors has announced its divestment of tobacco and controversial weapons shares in its State Street Global Index Plus Trust. Effective from 31 July, the Index Plus Trust has stripped 12 companies from its investment universe, several of which had business activities that involved tobacco, cluster bomb creation, landmines and chemical, biological and depleted uranium weapons, according to a statement. The divestment of these shares was due to “demand from the fund’s institutional investors” that it could still meet objectives without the presence of the companies.

There is growing momentum worldwide of investors adopting environmental, social and governance (ESG) considerations into their portfolios, the statement said. “We are keen to make ethical investing more accessible to all institutional investors, not just the very large ones able to utilise a separate mandate,” said SSGA Asia-Pacific head of portfolio strategists Jonathan Shead. “Our analysis suggests that removing these companies from the fund won’t affect its level of diversification at the country or sector level and that investors will continue to get the broad market exposure they are seeking.”

The rest of this article can be found at investordaily.com.au.

Sugar the next target for responsible funds

Posted by Anton Murray Consulting on . Posted in Funds Management MC, Funds Management News, Investment Banking MC, Investment Banking News, Market Commentary, News

InvestorDaily

Speaking in Sydney, Martin Currie Australia portfolio manager Will Baylis said while sugar was not being negatively screened in their income strategies at present, it could escalate as an issue in years to come. “I would suspect, down the track, that sugar may well become quite topical,” Mr Baylis said. In March 2017 AMP Capital released a report that found sugar was emerging as an investment risk for the global food and beverage industry.

“UNPRI (the United Nations Principles for Responsible Investment) are starting to raise the issue of sugar. So that is something that we would have to consider down the track, but we don’t today,” Mr Baylis said. Extending further, Mr Baylis said junk food could similarly become negatively screened, but that it was harder to screen for junk food than it was for sugar. “To my mind it may well be someone who manufactures and distributes junk food, but how do you define junk food?” he asked. According to Mr Baylis, sugar was more easily defined.

The rest of this article can be found at investordaily.com.au.

Meet two expanding banks that might now recruit you in Singapore

Posted by Anton Murray Consulting on . Posted in Investment Banking MC, Investment Banking News, Market Commentary, News

Simon Mortlock, efinancialcareers

Private bankers in Singapore have yet more potential employment options to consider after Indonesia’s Bank Mandiri and Liechtenstein’s VP Bank announced expansion plans in the Republic. But both firms will need to work hard to convince relationship managers to join them as larger competitors – from Julius Baer to Deustche Bank – also step up their recruitment. Bank Mandiri is opening a full branch in Singapore.

It will mainly target previously hidden Indonesian wealth in the city state – currently held by other banks and valued at $55.7bn – that has recently been declared under Indonesia’s tax amnesty programme. Recruiting new Singapore-based RMs will be problematic, however. While Mandiri is Indonesia’s largest bank, some Indonesian clients won’t want the same firm to manage their onshore and offshore assets, says a former Asian private banker who asked not to be named.

The rest of this article can be found at news.efinancialcareers.com.

Institutional Investors Back Tobacco Control

Posted by Anton Murray Consulting on . Posted in Investment Banking MC, Investment Banking News, Market Commentary, News

InvestorDaily

AMP Capital has led a statement by a group of institutional investors, representing US$3.53 trillion in AUM, in support of global tobacco control measures. The statement, issued in conjunction with World No Tobacco Day on 31 May, endorsed the World Health Organisation’s (WHO) position that tobacco is a “threat to development”. AMP Capital, AXA, Californian pension fund CalPERS and French reinsurer SCOR were the leading signatories of the statement, joined by Australian super funds including HESTA, Australian Ethical, Local Government Super, NGS Super and VicSuper.

The statement has been signed by more than 50 institutional investors, health systems, pension funds and insurers representing US$3.53 trillion in assets under management. The statement, which is addressed to health ministers worldwide and the WHO, addresses “the threat posed by tobacco consumption to global health and economic wellbeing”. “The campaign aims to highlight the links between the use of tobacco products, tobacco control and sustainable development to encourage countries to include tobacco control in their responses to the 2030 Sustainable Development Agenda, and to broaden support and participation in efforts to implement plans that prioritise action on tobacco control,” it said.

The rest of this article can be found at investordaily.com.au.