Funds Management

There’s going to be plenty of low cost of capital opportunities for super funds as Australia’s existing power infrastructure is retired and replaced with renewable energy generation – not to mention its storage.

While making it through recent market events is an “accomplishment”, asset managers need to shake things up in order to survive. They’re doubling down on what worked in the past instead.

Even with the market-shaking events of 2022 mostly in the rearview and most of the valuation pressure now played out, equities won’t be moving much higher unless something big changes.

Vanguard usurped BlackRock as the biggest institutional fund manager in 2022 during a year where most firms went backwards, according to the latest Pensions & Investments global survey.

Investors have negative outlook “fatigue” and are tired of being cautious. But a large chunk of asset price falls have been due to earnings misses, and the lagged impact of monetary policy means the risks are still out in front.

The collapse of a built-in bull market has put more pressure on asset managers according to a new report, which will need to make “transformational changes” to enjoy the profitability and growth of years past.

Industry super fund owned IFM Investors and ISPT are exploring a merger at the request of their shareholders amidst a challenging outlook for commercial property.

Having poached a number of high-profile portfolio managers, and with backing from family offices and high net worth investors, new boutique Blackwattle is trying to correct the “inadequacies” of the Australian funds management industry.

The NZ Superannuation Fund (NZS) has topped up its hedge fund exposure, handing US$100 million to trans-Atlantic global macro-strategy specialist Episteme Capital.

A new fund headed up by several entertainment and finance veterans will back film and television productions in Australia, taking advantage of “huge changes” in the industry that have made streaming content king.

While equities have been the first stop for institutional investors trying to decarbonise their portfolios and back the transition to renewables, fixed income is the next lever they want to pull.

A rethink of the classic 60/40 portfolio and the need to generate consistent income are driving global pension funds deeper into private debt. But this “best in a generation” vintage probably won’t last.