Investment Banking MC

Investment Banking MC

New survey suggests Aussies opting for investment info online over advisers

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

ifa

A new survey has found that online trading sites now outrank advisers as the most popular source of information for Australian investors. Of the 752 investors surveyed by CoreData on behalf of online trading platform Moomoo, 38 per cent said that they sourced their investment information from online communities, ahead of traditional wealth advisers (29 per cent) as well as family and friends (32 per cent). Moomoo marketing director Andrew Rogan said that a shift in behaviour had been seen during the past year coinciding with a volatile period for stock markets and changing global market outlooks.

“These issues are regularly discussed in our community forums — people are sharing their experiences from around the world to help shape personal investment decisions,” he said. “There’s a wealth of information and experience available to investors willing to put the work into cultivating a strong community.” According to the survey, 47 per cent of investors aged over 60 now source their investment information online, overtaking the 38 per cent who said that they use traditional advisers.

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

ASX rebounds after three months of losses

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

InvestorDaily

Australia’s benchmark S&P/ASX 200 index returned 5.75 per cent in July, according to data from S&P Dow Jones Indices, after previously suffering three consecutive months of declines. The index started the financial year off on a positive note with particularly strong gains recorded in a number of sectors that have struggled in recent months. “The S&P/ASX 200 Information Technology was the star performer amongst Australian sectors in July, jumping 15 per cent, while materials slipped 1 per cent, the sole sector to decline during the month,” said S&P Dow Jones Indices index investment strategy director Benedek Vörös.

Strong gains were seen across the real estate (12.10 per cent), financials (9.28 per cent), consumer discretionary (8.24 per cent) and health care (7.69 per cent) sectors. Communication services (4.82 per cent), consumer staples (4.47 per cent), industrials (3.54 per cent), utilities (3.13 per cent) and energy (2.12 per cent) were also up for the month. Despite being the “star performer” of July, information technology is still the worst performing sector year to date with a loss of 27.61 per cent, followed by consumer discretionary (-16.74 per cent), real estate (-13.95 per cent) and communication services (-10.92 per cent).

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

Investment industry needs cultural reset: Willis Towers Watson

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

InvestorDaily

The investment industry has lagged in reforming company culture at the expense of gaining competitive advantage, a new report has said, stating asset managers can fall behind the pack if they keep prioritising short-term performance. New research from Willis Towers Watson’s Thinking Ahead Institute has noted the language and framing used around culture in the industry remain limited, despite growing weight being given to asset manager culture assessments in hiring and firing decisions overseen by asset owners and consultants. According to the report, common failings limiting cultural quality include insufficient regard for organisation’s purpose beyond short-term business results, low regard for understanding and assessing “soft” or intangible factors and limited development of language and facts necessary to communicate culture.

Further, institutional investors were said to have limited appreciation of how subcultures exist and interact within their organisations as well as weak engagement on culture in talent acquisition and development. The cultural differences between asset owners and asset managers were reported to be the most evident in the client-focused area, where asset managers over time had been increasingly drawn to more self-centred values in response to commercial pressures. “There is considerable need for cultural improvement in the industry,” the report stated.

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

ESG: Actively driving change

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

InvestorDaily

Environmental, social and governance investing is in vogue globally, but there seems to be a particular fascination for it in Australia. Speaking at the recent Aberdeen Standard Investments Changing Investment World forum in Sydney, ASI’s global head of stewardship and ESG investment Euan Stirling noted that despite the variety of ESG interpretations in the market, actively changing companies for the better should be at its core.

What is ESG investing?

ESG investing acquired some inaccurate associations with non-financial issues during its early days, according to Mr Stirling.

While some see the primary focus of ESG being ethical investing, again, this was not Mr Stirling’s view. While he does support stock selection within ethical funds, he believed ESG investing to be about much more than that.

“It is about creating the right long-term outcomes for our clients through the prism of environmental, social and governance considerations. For example, if we invest in a business that is exploiting workers and treating them poorly, then returns will simply not be sustainable. The same for a business that produces toxic emissions.

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

Instos issue climate challenge ahead of G7

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

InvestorDaily

Australia’s largest investors have joined 288 institutions representing US$26 trillion to call on governments around the world to address climate change. The 2018 Global Investor Statement to Governments on Climate Change has been delivered to government leaders ahead of the G7 Summit, which is held in Canada on 8 and 9 June. The statement, made by 288 institutions with US$26 trillion in assets under management, called on governments to achieve the goals of the Paris Agreement.

The key objective of the Paris Agreement is to keep global average temperature rises to well below 2 degrees above pre-industrial levels and preferably to 1.5 degrees. Australian signatories to the statement include AustralianSuper, First State Super, VicSuper, BT Financial Group and Colonial First State Global Asset Management. The statement also called on governments to accelerate private sector investment into the low-carbon transition and to commit to improving climate-related financial reporting.

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

‘Credit crunch’ would hit bank dividends: UBS

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

InvestorDaily

In a research note on the Australian banking sector, UBS analyst Jonathan Mott laid out a ‘credit crunch’ scenario under which the banks would be forced to cut dividends. Tightening credit conditions and negative sentiment are already causing the Australian housing market to slow following a prolonged boom in Sydney and Melbourne, said Mr Mott. Other factors that have UBS concerned are the royal commission’s “rigorous interpretation” of the responsible lending laws, APRA’s focus on sound lending practices, and the Labor Party’s pledge to limit negative gearing should it win the next federal election.

“Given these headwinds we expect a sharp slowdown in credit growth. Whether this turns into a more disorderly correction, or if there are any potential political interventions remains to be seen,” said Mr Mott. The question will be, he said, whether banks can maintain their dividends. If there is an orderly slowdown in the housing market, the banks should be able to generate enough capital to maintain dividends, Mr Mott said.

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

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