Analysis

The ASX is not Wall Street. A lot of the recent discussion about a style rotation, at long last, putting the value back in value investing, has focussed on the behaviour of US and global markets. A clearer focus on Australia offers a more nuanced, and relevant, analysis. According to a blog posted last week…

US-based niche thematic fund firm Ark Investment Management has jumped ahead of global giants BlackRock and State Street in exchange-traded fund (ETF) flows in January, according to a Sovereign Wealth Fund Institute (SWFI) report. The SWFI report says Ark, which runs seven ETFs based on ‘disruptive technology’ themes, took in US$1 billion on a single…

Asia Pacific will lead the other major regions for growth in assets under management over the next five years, according to study by PwC. Asia Pacific growth will outpace that in Europe and North America in both best and worst-case scenarios. The study, ‘The Power to Shape the Future – Asset and Wealth Management Revolution,’…

Maple-Brown Abbott’s affiliated listed infrastructure management firm is turning off gas and switching more to electric as the world adjusts to a low-carbon energy future. In a paper published last month (January 25), the Sydney-based Global Listed Infrastructure says its analysis suggests electric utilities will be the major beneficiaries of global climate change energy policies…

Volumes have been written about the frustrations felt by value managers from the long performance drought endured by their investors because of the big tech stock boom for much of the past 10 years. But what the next chapter brings is still unknown. Signs are there that the rotation which started in the fourth quarter…

While most investment managers have worked hard at incorporating ESG philosophies into their investment processes in recent years, under the overarching aim of sustainability, marrying the practicalities with the United Nations’ Sustainable Development Goals (SDGs) is not as simple as it may seem. Martin Currie, a long-time advocate of the integration of ESG principles within…

Notwithstanding some macro concerns, particularly around inflation, two of GSFM’s Australian managers – both with long/short strategies – have painted a bright picture for 2021 and beyond for investors. Munro Partners and Tribeca Investment Partners, growth managers which delivered returns of about 18 per cent for their equities long/short funds in 2020, appeared unfazed in…

The latest research note from BlackRock predicts another “choppy ride” for markets in the first half of 2021 with coronavirus responses and US politics continuing as major influences. But the risk of inflation is “underappreciated”. Noting the markets had moved considerably since its annual predictions for the year ahead, published only last month (early December),…

David Brown, an experienced investment manager and fund CIO, plans to move from Melbourne to the idyllic island of Rarotonga for his new role, COVID restrictions permitting. He started this month as CIO of the NZ$189 million (A$176 million) Cook Islands National Superannuation Fund – a new position. A special focus of the position will…

Legendary investor Jeremy Grantham has called bubble on the longest bull market in history. In a searing client newsletter, ‘Waiting for the Last Dance’, Grantham says current market conditions that feature “extreme overvaluation, explosive price increases, frenzied issuance, and hysterically speculative investor behavior” bear all the hallmarks of a last-gasp bubble expansion. The founder of…

Just as when ESG under its various guises was in its infancy, so too impact investing has been struggling through a dilemma to do with classification and standards to help smooth the bumps in the sector’s growth path. The classification part of the problem, at least, now appears to have been solved. At a webinar…

Investors need to watch for a surge in poor governance practices by company boards and management under the veil of responding to the impact of COVID-19. The latest stewardship report of a major global manager, Dimensional Fund Advisors, warns of an increase in questionable corporate activity this year. Dimensional managed US$527 billion ($A685 billion), as…