News

News

J.P. Morgan loses custody contract

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

Financial Standard

A $34 billion public sector fund has appointed a new custodian, ending a 19 year-long relationship with J.P. Morgan. Funds SA has selected Northern Trust as its custodian, after a long tender process. In September last year, Funds SA said it had invited seven custodians to submit proposals: the incumbent J.P. Morgan, NAB, Northern Trust, RBC, State Street, BNP Paribas and Citi. It appointed Mercer Sentinel to advise on the tender process.

Funds SA chief executive officer Jo Townsend said: “We were very pleased with the level of interest and quality of submissions from the tender respondents. We look forward to partnering with Northern Trust during the next phase of Funds SA’s evolution.” “We would also like to acknowledge J.P. Morgan, whom we have had a very strong and productive relationship over many years during which Funds SA has changed and grown significantly.” Northern Trust will commence as the custodian in early 2020, following the transition.

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

Aus ETFs projected to hit $100bn

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

InvestorDaily

ETF assets in Australia have been forecast to reach $100 billion by 2022 in a new Stockspot report, which would double the sector’s size during the next three years. The fifth annual Australian ETF Research findings showed that ETFs increased by 26 per cent over the past year to $45.8 billion in funds under management (FUM). The online investment adviser expects Australian ETF FUM to reach $17 trillion in 2023, making up 0.6 per cent of the global market.

Index ETFs tracking Australian shares were observed to have one year returns of 13.1 per cent, contrasting against the average active exchange-traded managed fund (ETMF) tracking the local share market, which the report stated would give returns of 5.9 per cent. SPIVA research, Stockspot added, has similarly shown that 80 per cent of Australian fund managers have failed to match the index return over 15 years. ETFs saved investors a collective $300 million in 2018-19 according to Stockspot, compared to being charged a fee of 1 per cent per annum or greater with traditional active fund managers.

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

Investors Urge G20 Leaders to Step Up Climate Change Ambition

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

Australian super funds are among the 477 investors urging G20 leaders to step up their ambition on climate change and enact stronger policies. Four hundred and seventy-seven investors with US$34 trillion in assets are behind the urgent call-to-action to limit average global temperature rise to no more than 1.5 degrees Celsius. The statement comes ahead of the G20 summit in Osaka, Japan, where world leaders will gather and discuss issues facing the globe.

“As institutional investors with millions of beneficiaries around the world, we reiterate our full support for the Paris Agreement and strongly urge all governments to implement the actions that are needed to achieve the goals of the agreement, with the utmost urgency,” said the signatories. Among the policies that the investors backed was the phasing out of thermal coal power, pricing carbon and phasing out fossil fuel subsidies by set deadlines. The investors also asked the world leaders to achieve the Paris Agreement goals by formulating long-term emission reduction strategies, align climate-related policy with the goals of the agreement and support a transition to a low carbon economy.

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

Open Banking Officially Launches

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

The open banking regime officially began yesterday with the four major banks offering data on a variety of products as part of the regime’s roll-out. The four major banks had a deadline of 1 July to make product data available on all credit and debit card, deposit and transaction accounts with more products to follow. By February, first mortgage data will have to be available, with eventually all products being available for the major banks by 2020. 1 July 2020 is the start date for all other banks to begin offering their credit and debit card product data with an end date of 2021.

Customer data will be included in the regime by 1 February 2020, which will allow consumers to more fully control their data and enable greater transparency and competition throughout the industry. Open banking has been sweeping across the world, with the most relatable example for Australia being the UK open banking regime. The UK introduced theirs following an exposure of poor practice, not dissimilar to Australia. Where it differs though is that the UK regime applies to only nine banks, whereas Australia’s will apply to all ADIs.

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

IOOF, JP Morgan cast off Ord Minnett

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

IOOF and JP Morgan have agreed to sell their stakes in longstanding broking and wealth manager company Ord Minnett, leaving a consortium of private investors with full ownership of the business. IOOF’s 70 per cent stake is expected to sell for $115 million, resulting in a post-tax profit of approximately $83 million for the company. The total amount for the sale has not been confirmed. The consortium led by Ord Minnett’s management is intending to acquire JP Morgan’s 30 per cent stake concurrently.

For that to happen, IOOF will first gain JP Morgan’s piece before selling all of its holding to Ord Minnett. Completion of the sale is anticipated to occur around 24 September. Newly appointed IOOF chief executive Renato Mota said Ord Minnett had been successfully under IOOF and JP Morgan ownership for more than a decade.

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