Apnavi Saddington

Gadens Partners Matthew Bode, Kelly Griffiths, Michael Kenny, Sinead Lynch, Daniel Maroske, Kate Mills, and Caroline Ord discuss the news from the financial services regulatory sector in the latest Regulatory Recap.   This edition highlights recent developments from ASIC, APRA, AFCA, AUSTRAC, OAIC, ACCC, Treasury, the Council of Financial Regulators, and legislative updates, including various enforcement actions taken by the regulators. Read more: https://lnkd.in/gSzByJcX #auslaw #ASIC #regulation #compliance If you found this insight article useful and you would like to subscribe to Gadens' updates, click here: https://lnkd.in/gwqNGne

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Thank you for having me Jay Nair at the 2024 IBR Asset Allocation Strategies Forum to discuss how we are thinking about differentiating investment solutions at AMP to better suit the unique characteristics of our members in the pension phase. We covered plenty of interesting ground including: > Greater allocations to Australian Equities with dedicated zero-tax (higher turnover) active management to maximise exposure to the franking credit opportunity set > SAA tilt to asset classes with cash flows more tightly linked to inflation to mitigate retirees’ risks around future real spending power > Agnostic between income and capital growth, unlike accumulation members which prefer capital gains (provided they are discounted) > The problem with managing a one size fits all approach to drawdown management and tail-risk hedging. These programs are expensive, and all retirees have different exposure to these risks depending on factors such as their interaction with the age pension, assets outside of super, homeownership status, risk preference etc. Data which is often not readily available to a super fund. Effective member engagement and advice is the secret sauce to managing these risks for retirees. Thanks Geoff Warren, Richard McDougall, Jonathan Chung and Michael Berg for a great discussion.

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Factor investing: the history, application and key considerations with Legal & General Investment Management (LGIM)'s Francis Chua and James Giblin Catch up on the webinar recording here: https://lnkd.in/gSrVVet3

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The Shaw and Partners June Quarter 2024 Research Monitor has thudded onto the street and again this quarter it is a page turner!! 📈 Q1 2024 Performance. The best performing Australian equity sector was Software and Services, up 24.5% including dividends. 🏘 China's Property Pile Up. China is building 2.9 times as many houses today than there are in Australia right now 🚢 Cautious Outlook for Iron Ore. Iron ore is Australia's largest resource export at A$124b value in 2023, ahead of LNG at A$92b. 💻 Talkin' about an AI Revolution. Microsoft (MSFT) is benefitting from its early lead in AI to upsell its security suite.   🔌 Copper: the Missing Ingredient of the Energy Transition. S&P Global recently estimated demand for refined copper will double by 2035. 🏭 Offshore Wind. There are over 2,000 GW of coal-fired power stations that need to be replaced. 🥇 Gold Price and Gold Share Price Divergence. Since 2010 the gold price has increased +250%, recently maintaining levels above A$3,000/oz. ✈ Come fly with me, let's fly, let's fly away. Aussie Travel Bounces Back.  🛌 Sleep Well at Night with Travel Sector Tailwinds. WebBeds is growing faster than their peer group. Stock recommendations: S&P/ASX100 Large Caps: Aristocrat Leisure (ASX: ALL), Domino's (ASX: DMP), Evolution Mining (ASX: EVN), James Hardie Industries (ASX: JHX), Pilbara Minerals Limited (ASX: PLS), Qantas (ASX: QAN), ResMed (ASX: RMD), Suncorp Group (ASX: SUN), Treasury Wine Estates (ASX: TWE), Xero (ASX: XRO). S&P Global/ASX Emerging Companies: Abacus Storage King Group (ASX: ASK), Bannerman Energy Ltd (ASX:BMN), Black Cat Syndicate Limited (ASX: BC8), Global Lithium Resources (ASX: GL1), Helloworld Travel Limited (ASX: HLO), Metro Mining Ltd (ASX:MMI), Retail Food Group (ASX: RFG), Tyro Payments (ASX: TYR), Vista Group (ASX: VGL), Webjet Limited (ASX: WEB). If you would like a copy please let me know! https://lnkd.in/giDmriV5 #investment #research #asx #wealthmanagement

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This week's Brief looks at why Australia is such a compelling destination for international investment. We use our recently developed indexes of demographics, economic activity, governance and debt imbalances to compare the "investibility" of 50 major economies with Australia. Take 5 min. and check out this week's Brief at the link below. https://lnkd.in/gHJ2YM4m

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Great to sit down with James Dunn to discuss the overwhelming opportunities for systematic investing in Australian Small Caps. Small Cap benchmarks are structurally biased towards proven laggards #FallenAngels, #Zombies and #Glamours. We explore a refreshing approach for investors to access the #smallcap premium while avoiding the baggage that typically comes with it.

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We're proud to sponsor the upcoming Fund Business 2nd Private Market Summit on 14th May in Sydney, a senior-level forum for asset owners and institutional investors, focused on the best practice management of private assets. Colmore’s April Wu will be speaking at the event on a panel on Fee Transparency. If you are attending and would like to find out how Colmore support some of the largest LPs globally with Fee Validation, contact us to arrange a meeting: https://okt.to/ZPKkN8 #feetransparency #feevalidation #investors #assetmanagement

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A paper published ahead of the Investment Magazine Fiduciary Investors Symposium starting on Tuesday outlines the challenges and considerations for Australian trustees in determining an optimal investment model for their funds. The paper published by 1886 Consulting says there is no single “best” approach, and even emulating the world-leading Canadian model isn’t for everyone. Doug T. | #superannuation #FiduciaryInvestorsSymposium #InvestmentMagazine https://lnkd.in/g2Pe-_57

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Here is my latest article in the AFR. I argue that the ructions in markets over the last week largely reflected the fact that markets were priced for an uber-benign scenario and had grown increasingly complacent about risk (whether macro, thematic, structural or geopolitical). In this sense while a US recession is a non-trivial risk, it is still unlikely in the near-term. The triggering of the Sahm Rule in the current environment is unique even according to its author (yes – ahem - “this time it is different”). In that context this feels more 1987 than 2008 or 1990-91, so maybe investors “keep calm and carry on”. In so doing, however, it is best not to forget the golden rule of investing: diversification. In a multi-asset portfolio this means properly calibrating risk appetite and while equity and bonds are the foundations of such a portfolio it is best to augment such exposures with investments uncorrelated with equity and bond beta. Such a portfolio mitigates any panic response and attendant sub-optimal decision-making in times of elevated volatility.  #GSFM #Recession #Volatility

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ESG is a minefield of obscurity,’ says Chris Gosselin CEO of Australian Fund Monitors (AFM). ‘There are over 120 funds in Australia that claim to offer responsible investing, but until now, investigating and clarifying those claims has been time-consuming and difficult. ESGCheck is designed to change all that.’ #esgcheck #esg #greenwashing #responsibleinvesting

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We're starting to see a lot more noise around this, highlighted by an article in the The Australian Financial Review this week: Alternatives represent a brave new world for Australian advisers and their clients, however what are you actually investing in? Private assets lack a market mechanism to give reference to their fundamental underlying value - it's even more essential to source quality research and do detailed due diligence on investments that are private and illiquid in nature. It's an asset class where communication from managers can be irregular, lacks transparency and can be difficult to validate. The benefits are becoming well known and we've seen a flood of capital into this space, however the risks are being given a lower priority as investors rush to generate attractive returns. To reference Warren Buffet - what will you be wearing when the tide goes out? Alan Logan Emily Barlow, CFA Andrew Garrett, CFA CAIA Hugo Goode, CFA

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Joran Laird, Global Fixed Income Portfolio Specialist at T. Rowe Price, shared his thoughts at our Melbourne WealthLeaders Forum about the 3 things to remember about High Yield.   ❝ Firstly, it’s delivered historically high, steady returns with moderate volatility. Importantly, those returns are driven by the collection, the reinvestment and the compounding of coupon. And thirdly, it acts as a diversifier to both risky assets and will enhance the returns of defensive assets. ❞ Shane Zabiegala, Jonathon Ross, Christine Tomkins, Amanda Borland  Tim Townsend, Graeme Miller

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Thank you to the Financial Standard and Karren Vergara for a 20 minute discussion with our Head of Investments (Stuart Haigh) on the rise of private markets in private client portfolios. The structural reallocation from public markets to private markets is another watershed moment in the continued 'institutionalisation' of private wealth and financial planning in Australia. https://lnkd.in/gKQbzAY8 Spire Capital has proudly been supporting Australian advice firms to navigate global private markets for over a decade. As the amount of private market opportunities for advisors continue to proliferate, we are offering select and qualified advice firms access to a customised semi-liquid private markets portfolio for retail/mass affluent clients. The strategy is focussed on identifying the best relative value across private markets and currently favours PE secondaries and private debt (direct lending). Execution is via specialist managers on preferred terms and through access vehicles customised for Australian investors. Meanwhile, we continue to curate a rolling menu of high-conviction private market co-investments (e.g. US Data Centres) for Wholesale investors seeking outsized returns. Please reach out to [email protected] for access to recent White Papers (Navigating the proliferation of private markets for wealth management and Liquidity in private market funds - mirage or miracle?) and for more information on how Spire can be your firm's trusted advisor for global private markets.

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A lack of diversification can add to portfolio risk, while overdiversification can add unnecessary fees and complexity - Australian Shareholders'​ Association, nabtrade, Morningstar Australia and Vanguard Australia discuss how Exchange Traded Funds can potentially aid diversification. Read now on #ASXInvestorUpdate https://lnkd.in/g-yEaiPK #ETFs #Diversification #PortfolioRisk

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Australia’s $200 billion private capital market is facing increasing challenges due to rising interest rates and borrowing costs, according to an article by Aaron Weinman published in The Australian Financial Review. PIMCO, a leading corporate credit investor, is raising alarms about the growing exposure to soured loans as private credit's popularity continues among the country's wealthiest families and institutions. This new development signifies heightened risks in the private debt sector that could affect fund managers and investors alike. https://lnkd.in/e2ZA59wE #PrivateDebt #PrivateCredit

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Hi The attached note takes a look at the outlook for the Australian dollar, which has started to grind a bit higher lately. The key points are as follows: After a soft patch since 2021, there is good reason to expect the $A to rise into next year: it’s undervalued; interest rate differentials look likely to shift in favour of Australia; sentiment towards the $A is negative; commodities still look to have entered a new super cycle; and Australia is a long way from the current account deficits of the past. There is a case for Australian-based investors to remain tilted a bit to hedged global investments but while maintaining a still decent exposure to foreign currency. The main downside risks for the $A would be if there is a recession or a new Trump trade war.

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Following a volatile week for investors, Jenna Labib, Executive Director at IAM joined Juliette Saly on ausbiz to discuss whether we’re at a turning point for the market, and how investors are trying to position themselves for the next market move. Jenna also talks about heading into an easing cycle where duration will play an important role, how important it is in this type of environment for fixed income to go back to being the defensive and safe part of portfolios, and she also touches on opportunities in the secondary market. Watch the video here: https://lnkd.in/gVPBq6xe #fixedincome #interestrates #duration

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Vanguard Australia has been fined $12.9 million for making misleading claims about the ESG screening for its Ethically Conscious Global Aggregate Bond fund. The justice in a case brought by ASIC noted that almost three-quarters of the securities in the fund by market value had not been researched or screened against ESG criteria. Vanguard Australia ASIC Responsible Investment Association Australasia (RIAA) #esg #greenwashing #riaa #environment #investment #financialadvisers #financialplanning #financialservices

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Peiting Liang, CFA, Senior Analyst from our Australian equities specialist investment partner, Northcape Capital says she believes the market is currently overlooking high-quality companies in favour of growth stocks, and this dynamic is unlikely to continue.   Click below to view Peiting’s sector outlook and three key themes investors should be considering for the remainder of the year.   Australian Equities Outlook - https://lnkd.in/gsX2QDNR   #equities #marketoutlook

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