Funds Management News

Funds Management News

Magellan profits rise with massive inflows

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

InvestorDaily

Magellan’s profits have surged and the company has upped its dividend as FUM grew by 29 per cent in 2019. The company’s half-year earnings show a 13 per cent increase in adjusted net profit after tax, from $176.5 million in 1H2019 to $216.8 in 1H2020. That’s been supported by massive inflows into FUM, with the company now managing $92.8 billion, up from $72.1 billion in 1H2019 – a 29 per cent increase.

“Magellan had a successful first half that has been underpinned by strong investment performance,” said CEO Brett Cairns. “We continue to focus on our clients. Delivering on our investment objectives, helping meet client needs and continuing to simplify investor experiences will ultimately lead to strong financial outcomes for our shareholders over time.”

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

Climate change to see safety services boom

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

InvestorDaily

In light of growing concern around climate change and natural disasters, one asset manager has said investors should be looking to place their money in improving human safety, an area it believes is worth more than $870.2 billion. Natixis affiliate Thematics Asset Management has published a new white paper exploring the theme of human safety, recommending that investors adapt to long-term structural shifts resulting from climate change, as catastrophic events like Australia’s bushfire emergency become more common. Thinking around human security has tended to focus more on man-made disasters, such as armed conflicts and human rights abuses, but the asset manager has insisted that threats following natural disasters are similar.

Thematics has estimated the group of companies that contribute to safety could be worth upwards of US$600 billion ($870.2 billion), with a combined market cap of more than US$4.5 trillion ($6.5 trillion), growing at a rate of 11 per cent annually. With human lives at stake, demand is increasing for technology and services that can help people find secure locations and keep basic services operating “when the lights go out”, particularly in hospitals. The report has pointed to notification and localisation technology as well as back-up power, renewables and storage.

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

Super industry sees best returns in six years

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

Investment Magazine

Australia’s superannuation industry recovered in 2019 with the global equity market, posting the biggest return since 2013. The median growth fund, where the bulk of Australian super assets are allocated, returned 14.5 per cent for the calendar year, according to an estimate compiled by Chant West. A 24 per cent rally for domestic equities in 2019 and a gain of as much as 27 per cent in international shares boosted the results.

“Fund members will have every reason to be delighted when they see their end-December balances,” said Chant West senior investment research manager Mano Mohankumar. “It’s a much better result than what we could have expected at the start of the year and a major turnaround from a year ago.” The results come as the prudential regulator increases its focus on fund performance after publicly shaming the laggards of the industry when it published the results of its heatmaps last month. A 2 per cent decline for the benchmark ASX 300 Index in December shaved off some of last year’s return for the industry which has the highest allocation to equities among the world’s seven largest pension fund markets.

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

International tech, ETFs top holdings among Aussies

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

InvestorDaily

Australian investors seemed to have transitioned away from a local bias in 2019, Saxo Bank has said, as clients using its platform have flocked towards international technology giants and ETFs. During the past year, the S&P 500 surged 29 per cent in US dollar terms, making for its best year since 2013.  Adam Smith, chief executive of Saxo Markets Australia commented: “Even though 2019 was characterised by high geopolitical uncertainty around the US-China trade war and Brexit, this did not drag on the long-term performance of global markets.

“Many who exercised patience between tweets and headlines throughout the year were very well rewarded.” Australian companies topped the ranks for most traded stocks among Saxo clients, with Afterpay, Fortescue Metals Group, BHP and Zip Co at the head of the list. Microsoft was the fifth most traded single stock. In ETFs, Vanguard ruled the roost: its Australian Shares Index ETF, US Total Market Shares Index ETF and FTSE Emerging Market Shares ETF were the most traded funds.

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

BlackRock doesn’t have all the answers

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

InvestorDaily

Earlier in January, BlackRock – the world’s largest asset manager – joined Climate Action 100+, a group that pressures companies to divest from fossil fuels. It marked a massive change for the investment giant, whose record on climate change has been shaky at best. BlackRock supported just five of 41 climate proposals at company meetings through 2019, and was more likely to support management at fossil fuel companies, according to advocacy group Majority Action.

In fact, BlackRock voted against all of Climate Action 100+ resolutions, meaning their joining the group must have been awkward. To be a fly on that wall. But we probably shouldn’t hold past sins against them. After all, Larry Fink seems to get it. It’s rare, even within the growing ESG community, for somebody to wrap their head around the huge impact that climate change will have on not just money, but the world. “Will cities, for example, be able to afford their infrastructure needs as climate risk reshapes the market for municipal bonds?” Mr Fink wrote in his letter to CEOs.

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

Super funds see best returns in six years

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

Investment Magazine

Australia’s superannuation industry recovered in 2019 with the global equity market, posting the biggest return since 2013. The median growth fund, where the bulk of Australian super assets are allocated, returned 14.5 per cent for the calendar year, according to an estimate compiled by Chant West. A 24 per cent rally for domestic equities in 2019 and a gain of as much as 27 per cent in international shares boosted the results.

“Fund members will have every reason to be delighted when they see their end-December balances,” said Chant West senior investment research manager Mano Mohankumar. “It’s a much better result than what we could have expected at the start of the year and a major turnaround from a year ago.” The results come as the prudential regulator increases its focus on fund performance after publicly shaming the laggards of the industry when it published the results of its heatmaps last month.

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

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