Insights

Insights

RBA Cuts Cash Rate to Record Low of 1%

Posted by Anton Murray Consulting on . Posted in Market Commentary

SBS

The Reserve Bank of Australia has cut the cash rate to a fresh record low of 1.0 per cent, reducing the cost of borrowing for two months in a row for the first time since 2012. The market had largely priced in a second straight 0.25 percentage point cut after RBA Governor Philip Lowe suggested the June reduction would not be enough on its own to boost economic growth. The last cut came a day before the release of another disappointing quarterly GDP result and was the first move in any direction since August 2016.

Dr Lowe on Tuesday noted the impact on Australia of US-the China trade tariff disputes. “The uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy are tilted to the downside,” Dr Lowe said. Dr Lowe last month denied June’s decision to cut was a response to a deteriorating economic outlook since the RBA’s May meeting, but also noted that a 5.2 per cent unemployment rate and stubbornly low GDP growth indicate that few inroads are being made into the economy’s spare capacity.

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

ETF Investors Flock to Fixed Income

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

InvestorDaily

The first quarter saw global ETF investors rush into fixed income at the expense of equities, according to a BetaShares report. The ‘Quarterly Global ETF Review Q1 2019’ reported that the worldwide ETF industry ended the March quarter at a high of $7.7 trillion in assets under management, posting a quarterly growth rate of 12 per cent. BetaShares expects the industry to continue on a fast growth trajectory for the rest of the year, in line with the average growth rate of 20 per cent per annum in the last decade.

Australian, US and European investors bought more into fixed income over equities during the period. In Australia, bond products were the category observed to have the highest flows in the ETF sector, receiving more than $500 million of net inflows during the period. In the US, fixed income products had 68.2 per cent of flows in the quarter, while equities had 30.3 per cent.

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

Fidelity Launches Sustainability Ratings

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

Fidelity International has enhanced its global research capabilities with the launch of its proprietary sustainability ratings. The sustainability ratings will leverage Fidelity’s research capabilities and will be comprised of its equities and fixed income coverage. It will assist the management teams in providing a forward-looking evaluation of the company’s focus and ESG-related issues trajectory.

Global head of research, fixed income, Marty Dropkin said this tool was a natural step to match Fidelity’s research processes and was integral to the investment process. “Evaluating how effectively a company serves its stakeholders in the broadest sense is integral to our investment process. Building this proprietary sustainability ratings tool was a natural next step that matches our bottom-up fundamental research process and draws on our deep corporate access,” he said.

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

New ASX Trading Platform Launched

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

OpenMarkets Australia has launched a new trading platform to meet the needs of self-directed investors and advisers wanting fast, low-cost online tools. OpenMarkets Equix is the new platform by digital ASX trading platform OpenMarkets Australia and is designed to offer a fast, low-cost online solution for trading and investing in Australian securities. Clients will be able to trade in ASX-listed equities, warrants and a full suite of products including ETFs, as well as analyse their performance, access charts, create alerts and download reports.

The mobile and web tool is free for customers utilising its click-refresh-live-data version or users can upgrade to streaming at a cost. Chief executive of OpenMarkets Andrea Marani said it was a significant development and was already gaining traction with clients. “The decision to develop a new trading platform came after identifying the need to give clients trading tools that could be customised and integrated into OpenMarkets broader platform ecosystem, such as access to global markets and complementary third-party tools,” he said.

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

Major Banks Delaying Open Banking

Posted by Anton Murray Consulting on . Posted in Insights

InvestorDaily

One fintech leader has suggested that the open banking delay will continue due to the major banks not wanting to face the challenge. Andy Taylor, chief executive of fintech Douugh, has said that major banks are bogged down by legacy systems, which was part of the challenge, but the skeptic in him had another thought. “Who has the most to lose by open banking and it’s the majors, so are they going to want it quickly? Of course not,” he said.

Mr Taylor said that Douugh started life off as an innovation project for a major bank before expanding to the US due to its forwardness on open banking. “We were almost forced to look into America because they were leading the way on open banking albeit it not through regulation. They just got on with it, which is interesting if you look at the state of America in financial services,” said Mr Taylor.

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

Could lack of clarity on ESG be holding back climate change progress?

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

The issue of climate change has taken centre stage, dominating discussions at every level of society, from communities to the boardroom and politics. Through the lens of the natural environment, individuals and businesses have become much more conscious of their carbon footprint. It is imperative, however, that the lens of financial risk supported by the regulator also come into focus, with institutional investors having a significant role to play in combating climate change.

It is clear that climate change has never been more important for investors with financial regulators increasingly reinforcing the message that there is an onus on investors to act. The RBA has joined the choir – deputy governor Dr Guy Debelle has spoken out on the impact of climate change to monetary policy. And, Mercer revealed in our latest climate scenarios report Investing in a Time of Climate Change – The Sequel 2019 that climate change is having a direct impact on investment performance.

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