Markets are in a phony phase. Or more phony than usual, according to quant-investing great Cliff Asness, in a new research/opinion paper that fingers social media as the main anti-efficiency device. The founder of pioneering quantitative investment fund, AQR, says markets have become less efficient over the course of his almost 35-year career as measured… [Read More…]
Investment News
Bursting expectations: why bubbles don’t always end in a bloodbath
The ‘magnificent 7’ are likely riding into bubble territory but investors might yet avoid a bloody showdown, according to a new analysis by Dutch quantitative manager, Robeco. Robeco says of the 51 US stock market bubbles it identified across various sectors since 1926 only about half follow the familiar trajectory into a flame-out. “Classic bubbles… [Read More…]
ANZ-Mercer talks ongoing as BlackRock switch looms; lights out for wholesale
More than a year after flagging a dual outsourcing deal, the $30 billion plus ANZ Investments completed half the job last week in a signature agreement with BlackRock. But with BlackRock now signed-on for various investment risk management and operational services, the bank-owned fund manager has still to finalise plans to bring on Mercer for… [Read More…]
FMA KiwiSaver reports shows more members on the move
KiwiSaver competition picked up the pace during the 12 months to the end of March 2024 as scheme transfer amounts surged more than 20 per cent year-on-year, according to new figures from the Financial Markets Authority (FMA). The FMA 2024 KiwiSaver annual report shows more than $3.9 billion flowed between rival providers over the financial… [Read More…]
Makao wins consulting gig for $500m Anglican education charity
The $500 million Anglican St John’s College charitable fund has named Makao Investments as its new asset consultant, replacing long-time incumbent, Trust Management. However, Trust Management retains investment duties for the charity. Grant Hope, St John’s College Trust Board chief, confirmed the charity had hired Makao for “investment advisory services” following a recent tender process…. [Read More…]
Green bond spin sparks Vanguard record A$12.9 million fine, trans-Tasman lesson
Vanguard Australia has been hit by a fine equivalent to almost half its 2022 financial year annual profit over previously agreed greenwashing breaches in an ‘ethically conscious’ global bond fund marketed on both sides of the Tasman. The A$12.9 million penalty handed to Vanguard in the Australian Federal Court last week tops the A$11.3 million… [Read More…]
Stewart Investors looks for long-term AI answers; puts ‘sustainability’ fund label on notice
Like everyone else, sustainable investment managers are pondering the artificial intelligence (AI) question. And while the answers might still be emergent, Pablo Berrutti, Stewart Investors portfolio specialist, said to date AI appears neutral from a sustainability perspective. “There are some positives and some negatives,” Berrutti said. For instance, AI might help improve batteries for electric… [Read More…]
Mosaic sets course for trans-Tasman climate-risk training; XRB flags carbon reporting relief
Auckland-based consulting firm, Mosaic Financial Services Infrastructure, has launched a new line of climate risk training courses targeting senior executives and boards on both sides of the Tasman. Mosaic partner, Tracey Berry, said the four-course program takes participants from the basics of climate risk through to more pragmatic steps such as scenario analysis. Berry said… [Read More…]
Core power: Schroders global equities PIE on a roll
Schroders has picked up more than $400 million from NZ investors less than a year after launching portfolio investment entity (PIE) versions of its flagship global equities fund. The Schroders Sustainable Global Core strategy reported about $425 million in total across the hedged and unhedged PIE vehicles as at the end of August. On tour… [Read More…]
EM equity investors reap rewards of a ‘decade of transformation’
China’s reduced dominance in the emerging markets has changed the composition of the index, providing greater choice and diversity for investors as supply chains relocate and Asia becomes the world’s AI factory. By the end of 2020, China’s share of the MSCI EM equity index rose to nearly 40 per cent, propelled by the decision… [Read More…]