Investment Banking News

Investment Banking News

ESG profits continue to grow

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

InvestorDaily

ESG investment strategies are growing in profitability, with new geographic trends adding to their value. Amundi Asset Management analysed the performance of 1,700 companies across five investment universes, corresponding to MSCI indices. Their research – ESG investing in recent years: New insights from old challenges – found that ESG strategies tended to penalise ESG investors between 2010 and 2013, but rewarded investors after 2014.

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

Neobanks don’t need to disrupt the majors to have staying power

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

InvestorDaily

Addressing the Future Banking Forum on Wednesday, APRA general manager Melisande Waterford said that neobanks could have a positive impact on the finance industry despite their low market share. “Challenger banks don’t need to become a ‘fifth pillar’ to serve the Australian community,” Ms Waterford said. “Their existence alone can force incumbents to up their game.”

The speech comes after APRA granted the neobank Xinja an authorised deposit-taking institution (ADI) licence in September. Xinja joined Volt and 86 400 as some of the first neobanks to be given unrestricted ADI licences in Australia. The popularity of neobanks surged following the Hayne royal commission, with startups promising a more transparent process and lower costs due to their lack of brick and mortar branches.

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

AMP announces major restructure, CEO steps down

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

InvestorDaily

AMP has signalled it will be merging its banking and wealth management businesses into one combined organisation to be named AMP Australia, following the resignation of the company’s bank chief executive Sally Bruce. Heading the new AMP Australia unit will be current Australian wealth management chief Alex Wade. Rod Finch, currently managing director of wealth products and platforms, has been appointed to take the role of managing director, AMP bank.

Mr Finch will be reporting to Mr Wade when Ms Bruce steps down on 1 November. AMP chief executive Francesco De Ferrari said the internal consolidation reflected the company’s client-led strategy. “The strategy we set out in August is focused on reinventing AMP to be a client-led, simpler and more growth-oriented business,” Mr De Ferrari said.

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

Bonuses cut for many at ANZ

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

InvestorDaily

ANZ has announced wide ranging reforms to its remuneration structure with the biggest change to remove individual bonuses for many of its employees. The changes announced this week have replaced individual bonuses with an incentive based on the overall performance of the ANZ Group. These changes do not apply to ANZ’s executive committee which include chief executive Shayne Elliott, whose remuneration is structured in line with regulatory requirements.

Starting from October, the only variable remuneration most employees will receive will be in the form of a group performance dividend, based on the bank’s performance from a risk, financial, customer, people and reputation perspective. Mr Elliott said the royal commission had shone a light on the negative impact that individual bonuses within a bank can have on customer outcomes. “We are taking action to rebalance the way we pay people so that variable remuneration is a smaller part of our people’s take-home pay with these reduced bonuses to be determined by the overall performance of the bank,” he said.

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

Investors demanding more ESG and Impact Investing

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

finsia

Australian investors are catching up with European counterparts when it comes ESG and Impact Investing. That’s the view of one of the leaders in the fast-growing field who will be a keynote speaker at The Summit 2019 – The Age of the Customer – later this year. Giles Gunesekera, CEO of Global Impact Initiative, says consumers from all age groups are demanding to know where their superannuation funds are being held.

Both baby boomers and millennials want to have a clean conscience as well as a well-performing portfolio, he says. “Looking at the change, it’s definitely for the better from an industry perspective,” he said. “We continue to get lots of interest from people wanting to invest in different impact investing strategies.

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

Investor Community More Willing to Flex Muscle

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

InvestorDaily

The investor community is showing a willingness to flex their ownership muscle when it comes to engagement in responsible investing. The Responsible Investment Association Australasia (RIAA) recently released their responsible investment benchmark report and found that corporate engagement and shareholder action was the secondary strategy for most investors.  “We are finding that the investor community is more willing to flex their ownership muscle in terms of their ownership of customers. There’s a lot more proactive dialogue going on,” said Simon O’Connor, chief executive of RIAA.

While no single manager said their first strategy was engagement, 36 per cent said it was their secondary strategy, said Mr O’Connor. “You are seeing a greater propensity to vote in favour of ESG resolutions in AGMs and we’ve seen some fairly big votes in favour of companies aligning their strategy with a two-degree future for example. You’re also seeing a lot of investors getting behind listed companies to really ensure they realign their strategies to be in line with Paris agreement targets in particular,” he said.

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

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