News

News

Investor confidence increases to largest margin of 2021

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

InvestorDaily

Investor confidence is at a record high for 2021, according to State Street. The results of the local servicers’ Investor Confidence Index (ICI) for May were released on Friday, which increased to 97.9, up 5.4 points from April’s 92.5 reading. The jump is being attributed to a 6.0 point increase in North American Investor Confidence (97.8) and a 9.0 point increase in Asian Investor Confidence (100.8).

“Investor risk appetite improved by its largest margin of the year in May, buoyed largely by reopening optimism on the heels of broader vaccination access, particularly in advanced economies,” State Street Global Markets’ senior macro strategist, Marvin Loh, said. “Rising yields, which had generated investor concern earlier this year, have been generally stable recently, contributing to positive gains in investor confidence in both North America, as well as Asia, even in spite of ongoing issues with vaccine rollouts in Asian countries.” However despite the healthy increases in North America and Asia, the European ICI took a slight hit and dropped by 1.2 points (93.0).

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

ESG and active management driving change in portfolio construction trends

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

InvestorDaily

The rise of ESG and the breakdown of the traditional portfolio allocation have been contributed to a clear change in portfolio construction. Speaking at a media briefing in Sydney on Thursday, Heuristic Investment Systems head of asset allocation, Damien Hennessy, said the traditional 60:40 portfolio allocation is no longer viewed as the most logical investment ratio. “Bonds might still offer diversification in a deflationary scenario but with starting point yields so low and some emergence of inflation risk, we cannot be entirely confident that bonds will provide the buffer they have in the past. Investors have to consider other lines of defence for their portfolios,” Mr Hennessy said.

“A portfolio’s strategic asset allocation is one of the key drivers of the variability of returns across funds while manager selection is also critically important. Dynamic asset allocation provides a further source of return enhancement or risk mitigation for a portfolio. An investor ideally wants all areas contributing to better portfolio outcomes. “In addition to current elevated valuations, macro factors such as interest rates and inflationary pressures are increasingly having an impact on the strategic and tactical execution of asset allocation strategies.

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

New report gives insight into ‘blind spots’ of climate finance

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

A new report released this week has given insight into the “blind spots” of climate finance where uncertainty persists for investors. The investment arm of Institutional Shareholder Services Inc. (ISS), ISS ESG, has this week released its Seeing Past the Blind Spots in Climate Finance report that looks at three “critical” areas – “the consequences of a world shifting from mitigating climate change to adapting to it, the meaning of a true Net Zero transition and legal and other issues surrounding companies viewed as obstructing climate protection”. The new report follows this month’s release of ISS’ landmark report Net Zero by 2050, coined the “IEA NZE Roadmap”.

“In light of the IEA NZE Roadmap, investors must now anticipate an overhaul of many countries’ climate change action plans which will impact fossil fuel sector returns and investment stewardship strategies, while generating a new wave of clean energy investment opportunities, and sustainability bonds, as governments move towards accelerated targets,” head of climate solutions at ISS ESG, Viola Lutz, said. The research also claims that investors and companies are “yet to confront the reality” of net-zero targets. According to the report, emissions for a net-zero transition must be brought down far more than current policies require, while at the same time investing to remove greenhouse gas emissions.
The rest of this article can be found at investordaily.com.au.

‘Today we become a new IOOF’: MLC acquisition complete

Posted by Anton Murray Consulting on . Posted in News

ifa

IOOF has announced that over 400 MLC advisers will join the wealth giant’s new expanded advice business following the completion of its acquisition. IOOF announced that the acquisition would take effect from 11:59pm on Monday night. The news will see the business double in size to $494 billion FUMA, with an additional 406 MLC advisers joining IOOF.

“This acquisition is truly transformational for IOOF as it positions us as the leader of a new era of wealth management in Australia, giving us a strong platform for future growth,” IOOF CEO, Renato Mota, said. “Today we become a new IOOF. We have the strategic intent, the talent, and now the scale, to deliver our advice-led wealth management proposition to more Australians than ever before.”

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

Funds build brands while facing a new world of consumer choices

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

Investment Magazine

Funds are being forced to consider not only their performance but also their consumer brands, social image and ESG credentials as new regulations encourage members to make more active choices about their super. KPMG’s national section leader for asset and wealth management, Linda Elkins, says the Your Future Your Super legislation does puts funds in a “choice world” where they can no longer rely on “seeking funds passively through the default system”. Elkins says they are going to need to be capable of both acquiring and retaining members outside of that system and part of that strategy will be how they build their brands.

“Now with the stapling method of assigning funds, that will significantly change the way funds attract and retain,” she tells Investment Magazine. “That’s exactly why we think we’re seeing this trend of large quality funds still thinking that merging is a good idea so they can have the capacity to build brand [and] operating model improvements and product enhancements, particularly in the retirement space. The funds need to build all of that capability and it’s not just the brand, it’s also the customer-centric business model which will sit around that.”

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

ATO cracks down on crypto investors

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

The ATO has issued a stern warning to investors in cryptocurrency ahead of tax time this year. Speaking at a tax-time tip seminar last week, ATO assistant commissioner Adam O’Grady warned crypto investors that his office will be watching all events related to the asset class come tax time. “It is really important for all capital assets; we will be looking to ensure that the people have reported the capital gains events – and this is for both gains and losses,” Mr O’Grady said.

The warning comes as the Tax Office changes from a good-faith to a hard-line tax approach, with a surge of investors’ interest in the asset class piquing the ATO’s interest. “We get information and data on property sales from all the state and territory revenue offices,” he said. “We have very good shares data as well and it’s available as a pre-filled service [where] you can download different shares transactions for your clients.

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

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