Passive investing could pose a threat to global financial stability if the sector’s growth continues unabated, according to a new International Monetary Fund (IMF) study. In an updated chapter to its ‘Global Financial Stability’ report, the IMF says the prolonged low-rates, low-return period has given a tail-wind to the “already remarkable growth” in index funds…. [Read More…]
Investment News
Why Europe looks good to investors on a (risk) budget
Despite a mixed political backdrop European stocks look set for further outperformance compared to the US, BNP Investment Partners (BNPIP) senior global investment strategist, Daniel Morris, told Australasian investors last week. On a whirlwind tour of the Antipodes, Morris said the cyclical fundamentals in Europe support the growing recovery in the region that has been… [Read More…]
Factor investing gains momentum, value, and size
Here’s a party trick: how many factors are there? Most investment professionals can name a dozen or so. Chris Briant, the managing director of Parametric Portfolio Associates in Australia, believes there are at least “several hundred” but only a handful that really matter. Parametric, the global specialist implementation manager, has recently started to push its… [Read More…]
Industry body bulks up with two hires
The Financial Services Council (FSC) has bolstered its secretariat resources with the appointment of two new support staff. In a release last Friday, the FSC named Haydee Stroud and Rachel Douglas as head of member services and business manager, respectively. Richard Klipin, who took over from interim FSC chief, Owen Gill, last October, said the… [Read More…]
How journalists add value, everywhere they go
“If it ain’t broke, then break it” is not a bad way of thinking for active fund managers – not just contrarians and value managers; all active managers. And, it seems, journalists can help with that thought process. According to Matthew Benkendorf, the CIO and managing director of global manager Vontobel Asset Management, his portfolio… [Read More…]
No sign yet of appeal as Warminger case nears end game
The market manipulation legal saga involving Milford Asset Management portfolio manager, Mark Warminger, entered what should be its final phase last Friday as the deadline for lodging appeals passed, apparently without incident. By close to end of business on Friday, neither Warminger nor the Financial Markets Authority (FMA) had appealed the March 3 decision, the… [Read More…]
Consilium taps into steady stream of adviser platform outflows
Investment platform and financial adviser services firm, Consilium, is closing in on $2 billion under administration ahead of schedule with a raft of advisory businesses signing up in recent weeks. Scott Alman, Consilium managing director, said group now oversees about $1.8 billion in total, of which almost $1 billion sits on the Consilium Platform (CP)… [Read More…]
Advice reforms spark health and safety warning as submission period closes
Pathfinder Asset Management has joined the growing chorus of industry participants calling for the controversial ‘financial adviser representative’ (FAR) designation to be dropped from proposed legislation and greater accountability for institutional advice providers. In its submission on the draft Financial Services Legislation Amendment Bill (FSL), Pathfinder says the mooted FAR label is easily confused with… [Read More…]
Distribution model key to trust post-crisis planning, MJW
Funds designed to supply income over long-term intergenerational timelines should review how their current distribution policies would stack up following a financial crisis, a new Melville Jessup Weaver (MJW) paper argues. The MJW paper, authored by newly-appointed principal, Ben Trollip, found a wide discrepancy in post-crisis long-term outcomes depending on the distribution model funds have… [Read More…]
Suncorp pulls A$7.7b from Nikko
Pat Farrell, the newish CIO of Suncorp, has delivered on the well-telegraphed change of outsource arrangements for its $15.5 billion of discretionary funds under management. The bank will this week transition most of its $9 billion managed by Nikko Asset Management in Australia to several other managers. The $7.7 billion, which is in cash and… [Read More…]