News

News

Banks’ profitability soars

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

InvestorDaily

The banks have had an exceptionally strong financial year 2020-21, with industry profitability surging by over 20 per cent compared to a year earlier. According to APRA’s latest release, authorised dept-taking institutions (ADI) experienced a 23.5 per cent lift in net profit after tax to $32.3 billion at the end of June 2021, confirming the industry’s resilience amid the COVID-19 pandemic. Total assets edged up 1.0 per cent to $5,382.7 billion, while the ADI’s total capital base added 11.5 per cent to $387.1 billion.

However, despite holding strong capital and liquidity positions, along with improved profitability, the Australian Prudential Regulation Authority (APRA) noted that the outlook for ADI’s appears uncertain given the challenges currently faced by the industry from the Delta variant of COVID-19 and ongoing lockdowns. In residential mortgage lending, in particular, APRA noted that the share of new lending with high debt-to-income ratios increased over the quarter, continuing to be influenced by the low-interest rate environment and increasing house prices. In fact, residential mortgages increased 4.7 per cent to $1,935.2 billion, with owner-occupiers making up the bulk of the total sum or $1,234.1 billion – up 8.7 per cent on the year.

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

Bitcoin crashes on first day as El Salvador’s legal tender

Posted by Anton Murray Consulting on . Posted in News

BBC

Angry protests, technological glitches and a plummet in value marked the first day of El Salvador adopting Bitcoin as legal tender. The price of Bitcoin on Tuesday crashed to its lowest in nearly a month, falling from $52,000 to under $43,000 at one point. An opposition politician said the fall caused one of Latin America’s poorest countries to lose $3m. The rollout of bitcoin in El Salvador was far from what President Nayib Bukele would have envisaged when he began his bold experiment.

Platforms such as Apple and Huawei weren’t offering the government-backed digital wallet, known as Chivo, and servers had to be pulled offline after they couldn’t keep up with user registrations. But, as the day went on, Chivo began appearing on more platforms and was accepted by the likes of Starbucks and McDonald’s. The government has even given Salvadorans $30 each of Bitcoin to encourage its adoption. It says bitcoin could save the country $400m a year in transaction fees on funds sent from abroad.

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

IFM Investors makes ambitious climate pledge

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

InvestorDaily

IFM Investors has pledged to achieve net zero by 2050 by among other things restricting investments in any assets that derive material amounts of revenue from thermal coal. While targeting net zero by 2050, IFM Investors has set a 2030 interim emissions reduction target of 40 per cent of its existing infrastructure portfolio from 2019 levels. The company said it will reach the ambitious goal by targeting zero coal exposure for its existing portfolio by 2030, and by continuing to invest in essential infrastructure assets in sectors such as transport, utilities and energy.

“To continue delivering on our purpose, which is to protect and grow the long-term retirement savings of working people, it’s vital that we have a plan to mitigate the risks of climate change,” said IFM Investors chief executive David Neal. “We’re confident that the measures we are putting in place for our infrastructure portfolios are real, achievable and, we believe, in the best interests of our investors, their members and beneficiaries.” Last year IFM established a taskforce to identify how each asset class – infrastructure, listed equities, debt, and private equity – would contribute to its overarching goal to target net zero by 2050.

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

Get truly ESG-minded or get left behind: RIAA

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

The market for responsible investments continues to skyrocket when compared to the rate for overall Australian professionally managed investment, a new report has shown. The Responsible Investment Association Australasia (RIAA), in partnership with KPMG, released a report on Wednesday revealing the exponential growth responsible investment assets experienced in 2020 – 15 times the rate that overall Australian professionally managed investments clocked. As such, the market soared from $983 billion in 2019 to $1,281 billion in 2020.

The report differentiates between the majority of the mainstream investment market, which claims to be responsibly invested, and funds that are engaging in leading practice responsible investment. It found that the latter had a growth of 30 per cent in 2020, this coming at a time wherein the market at large saw the value of assets shrink by 11 per cent. “Investment managers committed to responsible investment and leading practice are seeing money moving across into their funds, while those with ineffective policies and poor processes are being left behind as the capital moves out,” said Nicolette Boele, executive, policy and standards for RIAA.

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

Cbus, Media Super announce merger ‘milestone’

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

InvestorDaily

Cbus Super and Media Super have signed a Successor Fund Transfer (SFT) deed, marking the next stage of their merger. The two funds have announced “a milestone” in their merger proceedings, after inking at SFT deed. The merged fund, set to launch in the second half of FY2022, will manage over $70 billion in funds for around 850,000 members.

Under the SFT, Cbus will retain the Media Super brand to communicate with members in the print, media, entertainment and arts, and broader creative industries, whilst investment, management and back office functions will be shared. “In an environment where the complexities of regulatory change, investment opportunities and member demand for digital and advisory services are growing, it is becoming increasingly difficult for smaller superannuation funds to remain cost-competitive and provide members with more choice and opportunity to grow their retirement savings,” said Media Super chair Susan Heaney. Ms Heaney noted that by belonging to a much larger fund, Media Super members will gain investment opportunities at a lower cost and benefit from a portfolio of products and services that will help improve their retirement outcomes.

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

COVID-19 investment boom shows no signs of slowing

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

InvestorDaily

A white paper from a global trading network for managed funds has shown that investor appetite continues to rise throughout the ongoing COVID-19 pandemic. When comparing findings to the same study undertaken in 2020, Calastone found that pent-up demand, growing confidence in the economic outlook and an increased appreciation of financial security through second and third waves of the virus were driving the marked increase in investor activity. The white paper studied participants in the UK, US, Australia, New Zealand, Hong Kong and Germany.

It found that 32 per cent of these were more likely to invest in the market as a result of the pandemic and that 42 per cent had already done so as a direct consequence of the virus. This study, alongside the 2020 white paper, has shown that Millennials have been the most enthusiastic demographic investing in the markets through the pandemic. Seventy-five per cent were found to have made an investment as a result of COVID-19. This was a rise of 7 per cent from the 2020 study.

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

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