Funds Management News

Funds Management News

J.P. Morgan loses custody contract

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

Financial Standard

A $34 billion public sector fund has appointed a new custodian, ending a 19 year-long relationship with J.P. Morgan. Funds SA has selected Northern Trust as its custodian, after a long tender process. In September last year, Funds SA said it had invited seven custodians to submit proposals: the incumbent J.P. Morgan, NAB, Northern Trust, RBC, State Street, BNP Paribas and Citi. It appointed Mercer Sentinel to advise on the tender process.

Funds SA chief executive officer Jo Townsend said: “We were very pleased with the level of interest and quality of submissions from the tender respondents. We look forward to partnering with Northern Trust during the next phase of Funds SA’s evolution.” “We would also like to acknowledge J.P. Morgan, whom we have had a very strong and productive relationship over many years during which Funds SA has changed and grown significantly.” Northern Trust will commence as the custodian in early 2020, following the transition.

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

Aus ETFs projected to hit $100bn

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

InvestorDaily

ETF assets in Australia have been forecast to reach $100 billion by 2022 in a new Stockspot report, which would double the sector’s size during the next three years. The fifth annual Australian ETF Research findings showed that ETFs increased by 26 per cent over the past year to $45.8 billion in funds under management (FUM). The online investment adviser expects Australian ETF FUM to reach $17 trillion in 2023, making up 0.6 per cent of the global market.

Index ETFs tracking Australian shares were observed to have one year returns of 13.1 per cent, contrasting against the average active exchange-traded managed fund (ETMF) tracking the local share market, which the report stated would give returns of 5.9 per cent. SPIVA research, Stockspot added, has similarly shown that 80 per cent of Australian fund managers have failed to match the index return over 15 years. ETFs saved investors a collective $300 million in 2018-19 according to Stockspot, compared to being charged a fee of 1 per cent per annum or greater with traditional active fund managers.

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

ETF Investors Flock to Fixed Income

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

InvestorDaily

The first quarter saw global ETF investors rush into fixed income at the expense of equities, according to a BetaShares report. The ‘Quarterly Global ETF Review Q1 2019’ reported that the worldwide ETF industry ended the March quarter at a high of $7.7 trillion in assets under management, posting a quarterly growth rate of 12 per cent. BetaShares expects the industry to continue on a fast growth trajectory for the rest of the year, in line with the average growth rate of 20 per cent per annum in the last decade.

Australian, US and European investors bought more into fixed income over equities during the period. In Australia, bond products were the category observed to have the highest flows in the ETF sector, receiving more than $500 million of net inflows during the period. In the US, fixed income products had 68.2 per cent of flows in the quarter, while equities had 30.3 per cent.

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

Aussie ETFs near $50bn

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

InvestorDaily

Australia’s ETF sector ended May at a high of $48.7 billion in funds under management, with all of its monthly growth coming from net inflows, according to a new report. The BetaShares Australian ETF Review – May 2019 showed that the industry received around $1 billion in net new money during the month, with its monthly total market cap increasing by 1.4 per cent. ETFs were also reported to reach a record in terms of trading value, with more than $4 billion of value traded over the month for the first time.

Australian shares and bonds received the highest amount of flows, with both categories receiving around $250 million in net flows. “Fixed income ETFs have received significantly more attention this year than ever before as investors continue to exhibit caution on the equities market,” Alex Vynokur, chief executive of BetaShares, said. “Year to date, fixed income is the number one category for flows in the industry, marginally beating out the ever-popular international equities category.

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

Government Encouraged to Commit to 12% Super Guarantee

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

InvestorDaily

The Australian Institute of Superannuation Trustees has called on the government to raise the super guarantee to 12 per cent. The AIST chief executive Eve Scheerlinck said that the member funds were committed to working with the government for better retirement outcomes for Australians. “We will continue to strongly advocate for policies that improve the fairness and sustainability of superannuation for all Australians, which includes a commitment to raising the Superannuation Guarantee to 12 per cent as scheduled,” Ms Scheerlinck said.

The current super guarantee is 9.50 per cent and isn’t scheduled to rise until the second half of 2021 when it is scheduled to rise to 10 per cent. Labor during the election campaign said it would increase the super guarantee from 9.5 per cent to 12 per cent sooner than the Coalition. However, the government made no such promise and currently has no plans to change the guarantee.

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

Responsible Investment Fund Launched

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

InvestorDaily

A new responsible investment fund has been launched for Australian investors to meet a growing demand for access to positive ESG analysis. Legg Mason has launched the Legg Mason QS Investors Global Responsible Investment Fund to meet market demand for a fund that embeds positive ESG analysis alongside ethical restrictions. The fund utilises the expertise of affiliate QS investors whose approach is a blend of fundamental and behavioural perspectives through a systematic process for more dependable outcomes.

Legg Mason’s head of Australia and New Zealand Andy Sowerby said it was a privilege to offer this capability to Australian investors which had two distinct features. “First, it fully integrates a proprietary model of ESG assessment that enables companies to be ranked and reviewed through multiple lenses to assess their effectiveness across the ESG spectrum – a systematic process that then focuses research and investments in those companies scoring highly in this regard. Second, a strict filter is applied across the investment universe to remove companies that do not meet certain ethical criteria. The exclusion list encompasses several sectors including tobacco, gambling, alcohol, defence and weapons, fur, genetically modified crops, nuclear energy, oil sands and thermal coal,” he said.

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