News

News

Aussie economy sees world-leading growth

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

The Australian economy has seen record-breaking growth as the states contain COVID-19 and the federal government prepares to unwind JobKeeper. Australia saw economic growth of 3.1 per cent through the December quarter – “significantly beating market expectations” of 2.5 per cent – off the back of strong increases in household spending and private investment. “This is the first time in recorded history that Australia has seen two consecutive quarters of economic growth of more than 3 per cent. The Australian economy has recovered 85 per cent of its COVID-induced fall, six months earlier and twice as fast as we expected in last year’s October budget,” Mr Frydenberg said.

Mr Frydenberg called the figures a “very encouraging performance” from the Australian economy given the “economic abyss we were staring into” at the peak of the COVID-19 crisis and credited them to the country’s world-leading health response. “This is an achievement all Australians contributed to and all Australians can be proud of,” Mr Frydenberg said, but warned that a number of sectors and regions “were still doing it tough”.

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

Capital Group adds corporate governance director

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

Capital Group has recruited from JP Morgan for its newly created role of corporate governance director, adding another member to its ESG leadership team. Rob Hardy has taken the role, after being head of investment stewardship for the EMEA region at JP Morgan, where he led the formulation and oversight of the firm’s ESG strategy and public policy. Prior to joining JP Morgan in 1996, Mr Hardy had been a corporate governance and proxy voting specialist at Phillips & Drew Fund Management.

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

Yarra to become $20b fund manager after striking Nikko deal

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

AFR

Yarra Capital Management will acquire all of Nikko Asset Management in Australia to become a $20 billion investment manager, and Nikko will in turn take a 20 per cent stake in the Australian manager in a deal struck on Tuesday. Yarra is also looking for a chief executive as its current boss, Dion Hershan, steps into an executive chairman role while keeping oversight of Yarra’s equities team. “The foundations are in place for a great asset management business,” says Dion Hershan.

“Japan is the second- or third-largest pension market globally, they have a prolific interest in Australian fixed income, Australian real assets and Australian equities,” Mr Hershan said. “That is not at the expense of what we want to achieve in the domestic market,” he said, which was to grow the institutional business and retail distribution. “The logic around this transaction is really strong. The foundations are in place for a great asset management business.”

The rest of this article can be found at afr.com.

Front-to-back outsourcing transforms funds management

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

Investor Strategy

The major asset servicing firms are widening their field of vision and have, for the most part, become front-to-back-office providers, as middle-office outsourcing becomes ubiquitous for big investors and managers. It is a development which has taken place concurrently with tightening revenue streams among asset managers, which are often under the same ownership umbrella as the asset servicing firms and custodian banks. In the past month, for instance, one of the leaders in promoting the benefits of outsourced middle-office functions, Northern Trust, has announced two deals which strengthen what it calls its ‘Whole Office’ platform.

Early in February Northern Trust announced it had entered an alliance with IHS Markit, to integrate its ‘thinkFolio’ order management system with the Northern Trust middle-office platform. Then, the following week, it announced an equity investment in front-office system provider Equity Data Science (EDS), which will allow its cloud-based analytics platform to also be integrated into the Northern Trust Whole Office platform. According to Pete Cherecwich, Northern’s Chicago-based president of corporate and institutional services: “We want to be able to offer everything of interest to investment managers.”

The rest of this article can be found at ioandc.com.

Aviva names real assets CIO

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

InvestorDaily

Aviva Investors has appointed a chief investment officer of its real assets business. Daniel McHugh will be taking the role, replacing predecessor real assets CIO Mark Versey, as he has become the group’s new chief executive. In his new role, Mr McHugh will report to Mr Versey and will be responsible for the strategy and growth of Aviva Investors’ integrated real assets business, encompassing real estate, infrastructure and private debt.

He will oversee around 33 professionals working across fund and asset management, development, transactions, origination, underwriting, research and business management. Mr McHugh will join the Aviva Investors executive team. He joined the company in 2018 as managing director, real estate. He is also a member of the real assets senior leadership team.

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

ESG market tops $100 trillion

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

Global money invested in ESG assets soared to over US$100 trillion amid the pandemic, but as the market becomes increasingly sophisticated, fund managers will need to do more than simply releasing a vanilla ethical offering, according to new research. Addressing the InvestorDaily ESG Summit 2021, CoreData principal Andrew Inwood said ESG investing had “never been more exciting than it has been in the past 12 months”, with increasing global tax incentives for green investing pushing more funds into the sector as investors searched for new opportunities in a low-interest rate world. CoreData research indicated funds invested under the UN Principles for Responsible Investing had soared from US$6 trillion in 2006 to US$103 trillion in 2020, with more than half of global institutional investors now fully integrating ESG into their investment approach.

“The low inflation environment means the way money is moving around has started to change. While returns are low, people are looking for opportunities and people inside the ESG market have been outperforming,” Mr Inwood said. “While that’s happening, money is starting to shift into the space where people are chasing better opportunities and picking up trends that are impacted positively by taxation structures.” Only the US market had so far lagged in ESG take-up, with only 30 per cent of institutional investors fully integrating it into their strategies, but Mr Inwood said this was likely to change with the new Biden administration.

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

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