Analysis

The investment world loves its acronyms, even though, as the old gag goes, we should try to avoid TLAs (three-letter acronyms). Here’s a new one: the MAC, which stands for multi-asset credit. It’s a potential new path in the search for yield. A client research note from global manager Eaton Vance Investment Managers – ‘Accessing…

(pictured: Laurent Bourlard) AXA Investment Managers has signalled its intention to be a part of the search for workable retirement solutions for the members of the not-for-profit super funds. It is looking at ways to incorporate some of the funds’ existing strategies and managers in its own design thinking. Craig Hurt, AXA IM’s director, Australia and…

(pictured: Mike Schneider) A common lament among investors is ‘where to invest’ for growth if equities are fully priced and interest rates are low-to-negative. According to a paper by Artisan Partners, companies which combine technological advances with traditional industrial characteristics of quality are a good place to look. In Australia to speak at a Conexus conference…

(pictured: Michael Gordon) by Michael Gordon* Much has been written on these pages in recent weeks on the issue of fund manager fees. The argument is not new and is typically partisan. However, in 30 years in the business I’ve never seen fee pressure so extreme. Fees right across the traditional asset management agency chain have…

(pictured: John McMurtrie) The Link Group maiden full year result as a listed company did not disappoint. Perhaps the biggest surprise was how well Link has integrated the formerly troubled SuperPartners with its own super admin system. Administration, once the poor cousin to fund managers and banks in the service provider space, has a bright new…

(pictured: Dori Levanoni)  Whenever the US dollar spikes up or down investors around the world suddenly get interested in their currency exposures. Currency, it seems, is an after-thought asset class which happens to be, often, the first or second-biggest influencer of investment returns. That interest has been piqued right now. Dori Levanoni, a partner, investments,…

(pictured: Keri Pratt) By Keri Pratt* Australian asset managers exist in a superannuation ecosystem that is experiencing rapid or accelerated change (the ‘perfect storm’?) as a result of a range of factors and influences. These trends include: Regulatory change (increasing compliance costs, MySuper limitations and narrowed focus and now the Productivity Commission review) The arrival…

(pictured: Bill Miller and Ben Blanchett) by Patrick Liddy* The US fracking revolution has transformed the economics of oil and gas production globally. The US has become a bigger producer than Saudi Arabia and again becoming energy independent. These dynamics lower energy prices for the end user worldwide while driving a robust US economy. The geopolitical…

(pictured: Louis Kuijs) The currency investment decision for super funds is the biggest and, arguably, most difficult they have to make. The Australian dollar has had the largest depreciation of any Asia Pacific currency since mid-2014, benefitting most big funds. In a new study, Oxford Economics predicts the future for Asian currencies. According to the paper…

(pictured: Adrian Banner) Portfolio rebalancing has long been recognised as a way to add long-term value and maintain or improve diversification. However, it has always been difficult to measure its impact. Now, a US-based quant manager has applied to patent its algorithm for better performance attribution. Enhanced Investment Technologies (known as INTECH outside of Australia), an…

(pictured: Patrick Lemmens and Jeroen van Oerle)   To date it is the big banks which have invested most in the development of distributed ledger technologies, commonly known as ‘blockchain’. But uses other than streamlined payments are rapidly being explored. New research calmly examines the likely impact for all financial services players. The research, by investment…

(pictured: Damian Moloney)  Frontier Advisors is turning up the heat in the increasingly widespread debate about funds management fees, with its chief executive putting pen to paper for a thought-leadership piece which updates previous work by the asset consultancy. The latest paper, “Progressing a New Deal on Fees: Ideas for Institutional Investors” aims to: “Reiterate the…