Funds Management News

Funds Management News

Superannuation funds shrug off the pandemic to deliver ‘tremendous’ results

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

The New Daily

Superannuation funds have shrugged off the pandemic slump that roiled markets back in March, with the average growth or balanced fund returning an unexpectedly healthy 3.7 per cent for the 2020 calendar year. The top performing fund, Suncorp Growth, returned a massive 9.6 per cent. Chant West researcher Mano Mohankumar described the returns as “a tremendous outcome for super fund members and a great story for superannuation given the economic damage wrought by the COVID-19 pandemic”.

Although well below the 14.7 per cent that growth funds achieved in 2019, “it represents the ninth consecutive positive calendar year and the 11th in the past 12 years for growth funds”. “If we take ourselves back to late March, the prospect of finishing the year up 3.7 per cent would’ve been inconceivable,” Mr Mohankumar said. Independent economist Stephen Koukoulas said the strong returns had in part been driven by the economic recovery.

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

State Super Appoints New CIO

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

InvestorDaily

The $44 billion super fund has appointed a new chief investment officer as it rises to meet challenging market conditions through 2021. Charles Wu will step into the role of chief investment officer at State Super. Mr Wu was previously deputy CIO and general manager for defined contribution investments and joined State Super in 2015. “During his time with State Super, Charles has made a significant contribution to our investment performance in an extremely challenging environment, resulting in State Super’s growth and balanced funds consistently being in the top quartile on a risk adjusted basis,” said chief executive John Livanas.

“Charles’ approach to risk management has allowed State Super to successfully navigate the impact of the COVID-19 pandemic on capital markets. With Gary Gabriel’s departure, Charles is now ready to step up to the ultimate investment leadership role as CIO.” Mr Wu will join the executive leadership team and the management investment committee. Reporting to him will be Keri Pratt, the newly appointed general manager for defined benefits, assets and liabilities; Sarah Gallard, senior manager for responsible investment; and Jonathan Chung, senior manager for portfolio risk. “I look forward to continuing to deliver value for our members. It is exciting to take on these responsibilities in the midst of ongoing market challenges,” Mr Wu said.

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

Ethical Investing on the Rise as Younger Australians Reject Fossil Fuels

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

The New Daily

Generational change is driving the move away from fossil fuel investments, with both superannuation funds and finance houses responding with targeted investment policies. Clean energy lobby group Market Forces has launched a campaign to push industry super fund Hostplus to reduce its fossil fuel exposure after pressure from the fund’s young membership. “Over the last year we have seen an uptick in Hostplus members using our website to call for divestment from fossil fuels,” said Market Forces asset-management campaigner Will van de Pol.

“They are mainly younger members who join Hostplus because their first jobs are in cafes and bars, and that demographic has pushed hard for real climate action around the world.” The campaign targeted Hostplus’s investments in coal-powered generation and coal mining through stakes in companies like AGL, Origin and BHP. Hostplus for its part said it was reviewing its options.

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

Netwealth Raises Inflows Guidance by $500m

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

InvestorDaily

Despite the COVID crisis, Netwealth has upped its forecast inflows for the 2021 financial year, after pulling a $4.8 billion (or 14 per cent) increase in funds under administration in the December quarter. As at the end of the 2020 year, Netwealth had $38.8 billion in funds under administration (FUA), a 36.1 per cent rise ($10.3 billion) on the prior corresponding period (pcp). There had been $2.6 billion in net inflows for the December quarter, contributing to its FUA net inflows of $9.2 billion for the 2020 calendar year.

Funds under management as at 31 December were $9.3 billion, rising by 15.5 per cent (or $1.3 billion) for the final quarter. During the three months, there had been FUM net inflows of $700 million and market movement of $500 million. Meanwhile the managed account segment pulled strong results, with its balance of $7.6 billion surging by 74.1 per cent on the pcp. There had been net flows of $3.2 billion for the 2020 year, a 63.9 per cent increase. While the impacts of COVID-19 had shaken the stability of global markets, Netwealth has signalled it expects to benefit from ongoing industry consolidation and change.

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

Macquarie joins top 25 US fund managers

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

AFR

Macquarie Group has intensified its position in the US active management sector by buying New York-listed Waddell & Reed Financial – a top-25 mutual fund manager that found itself at the centre of the 2010 “flash crash” on Wall Street – for $2.3 billion. ASX-listed Macquarie has struck a deal to buy Waddell & Reed’s $US68 billion ($84 billion) asset management business and its $US63 billion wealth management arm, but will immediately dump the latter in a sale to Nasdaq-listed LPL Financial Holdings $300 million and excess net assets on completion of its purchase. The takeover of Waddell & Reed, at $US25 per share – or $US1.7 billion – is expected to close by mid-2021, cementing Macquarie’s interest in the 83-year-old firm and boosting the Australian financial group’s assets under management to $650 billion.

Waddell & Reed distributes investment products to clients under the Ivy Investments brand and through independent financial advisers. The further push into the active funds management sector by Macquarie comes at a time when institutional money managers are turning sharply towards passive investment through index funds, which have largely outperformed active managers while charging lower fees. After selling the wealth management business to LPL Financial, Macquarie will enter a long term partnership with the firm for strategic asset management.

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

Macquarie to buy US asset manager

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

InvestorDaily

Macquarie has announced it will buy one of the oldest asset and wealth management companies in the US in a deal worth more than $2 billion. Macquarie Asset Management has entered into an agreement to buy all the outstanding common shares of Waddell & Reed Financial for $2.3 billion. Upon completion of the deal, Macquarie will sell Waddell & Reed’s wealth management business – with approximately US$63 billion in assets under administration – to retail investment and advisory firm LPL Financial Holdings for $300 million, while holding onto an asset management arm with $68 billion in assets under management.

“The addition of Waddell & Reed and our enhanced partnership with LPL will significantly increase our ability to grow and invest in our combined business for the benefit of our clients…The consideration offered reflects the quality of Waddell & Reed’s business and the future benefits of our partnership with LPL,” said Martin Stanley, head of Macquarie Asset Management. As a result of the transaction, Macquarie Asset Management’s AUM is expected to increase to over $650 billion, and Macquarie will also become one of LPL’s “top-tier strategic asset management partners”.

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

 

Our clients include

* Prior invoiced clients across the region.