Investment Banking News

Investment Banking News

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.

ESG and quant investing

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

InvestorDaily

There’s a lot of talk about the importance of environmental, social and governance (ESG) issues in investment decisions, but is there sufficient action? And if there is, what does that action look like, and can it deliver on performance as well as moral objectives? When the chief executive of the world’s largest asset manager, BlackRock, said that “a company’s ability to manage environmental, social and governance matters demonstrates the leadership and good governance that is so essential to sustainable growth”, and that “ESG will be increasingly material to corporate valuations”, it’s clear that ESG has finally moved into mainstream investment management.

Add to that the fact that private equity and hedge fund managers are present and vocal at ESG conferences, when 10 years ago they would have considered these events peripheral, and it’s clear the relationship between ESG and investors has changed. It is no longer possible to ignore the science of climate change, nor deny the conclusion that we are at a tipping point in terms of the global environment. Action needs to be taken, now.

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

Finance sector urged to support net-zero push

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

A number of superannuation funds, investment managers, banks and insurers have set out a road map, calling for players in the finance sector to support the transition of the economy towards net-zero emissions among other reforms. The Australian Sustainable Finance Initiative (ASFI), which comprises 80 organisations including major banks, insurers, super funds and other stakeholders, released its road map on Tuesday, calling financial system participants to embed sustainability into their company policies. The road map has made 37 recommendations aiming to enable the sector, along with regulators and governments to boost Australia’s financial system in its recovery from COVID and to deliver a transition to a net-zero economy.

The road map has focused on embedding sustainability into company leadership and practice, as well as building sustainable finance markets. It was worked on by more than 140 participants from organisations spanning financial institutions, academia, regulators and government. APRA and ASIC had appointed civil society representatives to the ASFI steering committee, who sat alongside a number of banks, insurers and investors.

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

Perpetual completes Barrow Hanley acquisition

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

InvestorDaily

Perpetual has completed its acquisition of a 75 per cent stake in US investment manager Barrow Hanley, tripling its assets under management and expanding its reach in America. The Australian group completed its purchase of its majority interest in Barrow, Hanley, Mewhinney & Strauss (Barrow Hanley) from BrightSphere Investment Group on Wednesday, after it received approvals for the deal last week. The transaction is a step taken in Perpetual’s strategy to expand its global investment capabilities and distribution footprint, after it bought US ESG specialist Trillium Asset Management and began to build out its US-based distribution team.

Perpetual has gained US$41 billion ($58.3 billion) in assets under management (AUM) from the Barrow Hanley buy, tripling its own AUM to more than US$87 billion and adding 21 new strategies across asset classes and geographies. More than 70 per cent of Perpetual’s total assets are now managed offshore as a result, comprising 47 per cent US equities (including Trillium’s 6 per cent), 28 per cent cash and fixed income, 14 per cent Australian equities and 11 per cent global equities. Starting from the first half of next year, Perpetual is also set to introduce a new business division, Perpetual Asset Management, International, which will include the operations of Trillium and Barrow Hanley, as well as any other future international asset management functions.

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

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