Insights

Insights

October 2021

Posted by Anton Murray Consulting on . Posted in 2021

Impact investing is not new but has gained much wider appeal in today’s investment landscape, especially since the pandemic. Impact investing is not philanthropy as it aims to generate positive returns for those taking part. Simply put, an impact investment looks to make a positive contribution to the area in which it invests, be that the betterment of the environment or a social issue. The Responsible Investment Association of Australasia notes that the three parameters of impact investment are intentionality of the investment to produce social or environmental outcomes; the measurability of those outcomes and financial returns.

The growth of ESG investment parameters have brought the idea of investing for good into the forefront at both institutional and retail levels. Many listed public companies and fund managers have built ESG frameworks into their businesses to reduce or mitigate negative impact in the areas they operate and invest. Impact investing seeks to find companies and projects that make positive contributions through their implementation.

Impact investing is growing in a number of areas like investment managers who build portfolios of listed equities with their own stock or thematic filter to find and back companies making a positive impact in their industry. The intent of these portfolios is to go beyond stocks that are ‘greenwashed’ or who have taken on ESG themes. Whilst this is positive in itself, impact asset managers are looking to buy stocks that have direct exposure to industries or ideas where a measurable positive environmental or social impact can be attributed. The stock universe for this type of product is growing, particularly with new technology in renewable energy, pharmaceuticals, and waste recycling. Other products such as social or environmental impact bonds can also be managed by investment managers looking for different asset classes or diversity in their portfolio offerings.

Another way investors can gain exposure to impact is through direct investments in infrastructure and other such projects that create positive outcomes for communities, nations or the environment. These investments can be wide ranging in their desired impact or extremely specific in the areas on which they focus. Renewable energy, medical and hospital infrastructure, housing and water sustainability are just a few. Even real assets such as forestry investments (which are certainly not new to institutional investors) can sit in this arena.

ABGF announces inaugural $15m investment

Posted by Anton Murray Consulting on . Posted in Funds Management News

InvestorDaily

The Australian Business Growth Fund has announced its first investment. The Australian Business Growth Fund (ABGF) has made its inaugural investment, backing an innovator in clean technology 3ME Technology Holdings with $15 million. Based in the Hunter region, 3ME Technology designs and supplies safe, high-performance lithium-ion battery systems to industries with challenging safety, certification and operating demands, including the mining, military and marine sectors.

“The investment will enable 3ME Technology to increase production, invest in their market leading technology and expand into new markets, as well as expand Australian manufacturing capabilities in regional New South Wales and create new jobs in the Hunter,” Treasurer Josh Frydenberg said in a statement. In addition to the direct investment, ABGF will also hold a board position at 3ME Technology, providing strategic support as well as access to ABGF’s business networks. “The ABGF is designed to ensure that small and medium-sized businesses have access to the capital they need as we move into the recovery phase of the COVID-19 pandemic,” Mr Frydenberg said.

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

Australia ranked among the least attractive for green investing

Posted by Anton Murray Consulting on . Posted in Investment Banking News

InvestorDaily

Less than 2 per cent of Australia’s recovery spending was directed towards green initiatives. Major global investor groups are calling on Australia to improve its climate policies and attract more green investment. Australia was ranked alongside Argentina, India, Indonesia, Mexico, Russia and Saudi Arabia as one of the least attractive countries for green investment in the G20 Countries’ Climate Policy Report Card.

Released by the Asian Investor Group on Climate Change (AIGCC), Ceres and the Investor Group on Climate Change (IGCC), the report card analysed the progress of G20 countries towards five ‘priority actions’ previously released as part of the Global Investor Statement to Governments on the Climate Crisis, including stronger 2030 emissions targets, a commitment to net zero and mandatory climate risk disclosure. AIGCC and IGCC CEO Rebecca Mikula-Wright said that investors understood that climate risk is investment risk.

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

UBS Asset Management hires new country head

Posted by Anton Murray Consulting on . Posted in Funds Management News

InvestorDaily

UBS Asset Management has announced the appointment of Alison Telfer to the role of country head for Australia and New Zealand. Ms Telfer joins the manager with over 20 years of experience in Australian and global asset management, including most recently as chief operating officer, general counsel and head of public policy at BlackRock Investment Management Australasia. Her previous experience also includes eight years at Challenger in the roles of senior legal counsel and as director of specialised product development and co-investment group.

UBS Australasia joint-country head Nick Hughes said that the manager was excited to have Ms Telfer join and drive its asset management business forward. “Her strategic mindset coupled with her extensive Asia-Pacific asset management experience will be valuable in helping her position UBS Asset Management for the future,” said Mr Hughes. “Alison is a highly experienced and impactful senior leader and has a solid track record of leveraging the best of breed product capabilities of a global organisation to benefit local clients.”

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

Digital Assets: From Fringe to Future

Posted by Anton Murray Consulting on . Posted in Market Commentary

BNY Mellon

Many financial institutions across the globe have either been working to integrate and expand their offerings and investments related to digital assets, or else they have realized they can no longer take a “wait and see” approach. As they formulate their strategies, they still are seeking the benefits of disintermediation that digital assets offer. But they are also looking for the risk management and secure infrastructure that they have come to expect from mature institutions.

Essentially, investors are demanding an infrastructure for digital assets that is comparable to that which exists for traditional assets. Three key considerations are driving this demand:

  • Increasing interest in digital assets
  • Emerging potential of tokenization
  • An evolving regulatory environment

The rest of this article can be found at bnymellon.com.

 

 

Australia’s best and worst performing super funds revealed

Posted by Anton Murray Consulting on . Posted in Funds Management News

InvestorDaily

Australians could lose hundreds of thousands of dollars by being a member of a poor performing fund. A new report has found that Australians who are members of the worst performing super funds could lose a quarter of their balance by retirement. In its latest Fat Cat Funds Report, StockSpot identified what it described as ‘Fat Cat Funds’ by looking at the bottom 10 performing super funds within a particular risk group such as balanced or growth.

OnePath was named the top ‘Fat Cat Fund’ in 2021 with a total of 10 funds, followed by AMP with six funds and MLC, Zurich and Energy Industries Superannuation Scheme with three funds each. Stockspot said that $7 billion of superannuation was sitting in the worst 40 funds at a cost of over $120 million in fees each year. “Superannuation, after property, tends to be one of the largest assets that most Australians have” said StockSpot CEO Chris Brycki.

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

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