Investment Banking News

Investment Banking News

Investors vulnerable to ‘slow burning’ climate risk

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

InvestorDaily

Most investors believe that climate change will reshape the world – but less than half are actually doing anything to prepare for it. Nearly 90 per cent of global investors believe climate change is important but 40 per cent have yet to incorporate it into their investment process, according to new research from PGIM. “The humanitarian and economic catastrophe unleashed by COVID-19 revealed investor’s vulnerability to slow-burning risks with unpredictable timing,” said PGIM chief operating officer Taimur Hyat.

“Climate change is the next crisis that will radically reshape investors’ risks and opportunities. Investors that take action now can play an influential role in driving the global transition to a low-carbon economy while optimizing their portfolios for a greener future.” The research also found that few investors use alternative data sources to understand cross-portfolio climate risk – such as satellite imagery or air quality data – and that investors shouldn’t rush away from so-called “brown industries” when there are opportunities to engage with companies that want to change their ways.

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

AIIB to add 50 experts for private renewable investing

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

AsianInvestor

Asian Infrastructure Investment Bank (AIIB) intends to hire 50 investment experts this year as part of its efforts to commit 50% of its approved financing to renewable projects by 2025, with a particular focus on the support of private sector investors. These efforts will span directly supporting projects with making equity co-investments and issuing bonds related to environmental, social and governance projects, according to its head of investments. Jin Liqun, president of the multilateral bank, told an online event in January that AIIB wants efforts to address climate change comprise at least half of its financing approvals by 2025.

To achieve those targets, the young multilateral development bank will need many more personnel to implement strict selection criteria, said D. J. Pandian, vice president and chief investment officer at AIIB. “That means projects worth $8 billion to $9 billion per year are likely to be approved by that time,” he told AsianInvestor in an interview. “To strengthen the investment team, we are planning to hire 50 more talents globally this year, particularly in the private investment sector. The private investment goal is because we need to mobilise more fund from non-government sides.”

The rest of this article can be found at asianinvestor.net.

Why Magellan took a punt on Barrenjoey

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

InvestorDaily

Upstart Barrenjoey has the makings of Australia’s next big financial institution, according to Magellan chief executive Brett Cairns and chairman Hamish Douglass. Magellan pumped a cool $156 million into fledgling investment bank Barrenjoey in September last year, in what chairman Hamish Douglass believes is a sure bet. “I don’t think I’ve seen anything like it in my life, what they’ve done at Barrenjoey in such a short period of time – to put all the infrastructure and licences and technology in place, and then assemble just an extraordinary team of individuals,” Mr Douglass said.

“I think over the next three years people will be surprised by what that team does. We’re not running it, but we’re so privileged to be associated with those individuals.” Magellan CEO Brett Cairns also shrugged off news reports that suggested Barrenjoey is essentially UBS Australia 2.0, drawing many of its senior staff – including key deal-maker Matthew Grounds – from the investment bank. “The business has begun extremely well. They’ve managed to build a great deal of the foundations and the key infrastructure that’s required….there’s great diversity within that business, and the quality of that staff is really first class. It’s going to be an extremely high-quality group of people in that business,” Mr Cairns said.

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

Gains still to be found in global equities

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

InvestorDaily

Equity markets delivered extraordinary returns in 2020, but the first quarter of 2021 will certainly test investors, given the return of uneven and contradictory news flow. Expectations of further monetary and fiscal stimulus, along with positive news on vaccines, have helped support equity markets. However, a new variant of the virus is putting increased pressure on healthcare systems, and we are seeing more and more countries locking down again.

We believe this will have economic repercussions for many and, at a minimum, will defer some of the fundamental rebound investors have been anticipating. We also need to factor in political change. What does the “blue wave transition” in the US mean for companies and policy decisions, especially around taxation and US-China relations?

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

Green bonds: part of super industry’s decarbonising tool set

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

Investment Magazine

Expanded ‘green’ criteria is set to unleash a wave of new green and ‘transition’ bonds from across Australian industry as companies and superannuation funds leverage markets to help fund their 2050 Net Zero targets. Waste and residential property sectors are set to join banks, property developers, renewable energy players and state governments in issuing ‘green’ debt ring-fenced for decarbonising projects, while big polluters are looking closely at using ‘transition’ bonds to assist their decarbonising process. Michael Chen, head of sustainable finance at Westpac Institutional Bank, said the Climate Bonds Initiative’s recent definition expansion means investors will soon have access to green debt beyond that of the existing oversubscribed ‘low-hanging fruit’.

“Now that we’ve got good, specific, globally accepted definition of what green looks like in the waste sector, I expect we’ll see some issuance there,” said Chen, adding residential property is not far behind. Chen also said big energy companies, as well as steel, aluminium, manufacturing and chemical companies are looking at the ‘transition’ format closely. “Now they’ve got transition guidelines and definitions for what a ‘transition bond’ might look like we’ll likely see some more issuance from those emissions intensive companies.”

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

Aussie investors don’t feel COVID fear

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

InvestorDaily

The portfolios of Australian investors have been hit harder by COVID than many of their global peers, but most believe that things are looking up. A PIMCO survey found that 60 per cent of Australian respondents had seen a negative impact on their portfolios as a result of COVID-19, compared to 51 per cent across the five other APAC markets surveyed – Hong Kong, Singapore, Taiwan, and Japan. “Despite this, many more Australians expect growth in their portfolios in the coming 12 months than foresee a contraction. And more Australians expect national and regional economic growth than their counterparts in the other APAC markets surveyed,” PIMCO said.

Those with lower incomes ($1,800 a week) were the worst affected by COVID-19, with 19 per cent of the group saying the pandemic had a “major” negative impact on their portfolios compared with 10 per cent of those with incomes above that level. Some 45 per cent of Australian respondents said the pandemic had also reduced their confidence in their own decision-making – but that hasn’t stopped them from backing themselves.

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

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