ASSET ALLOCATION – AUSTRALIA

ASX rotation could see CBA investors jump on mining train

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Original article by Alex Gluyas
The Australian Financial Review – Page: 23 : 2-Jul-25

S&P/ASX 200 bank stocks gained 26 per cent during the 2024-25 financial year, while the resources sector fell eight per cent. However, some analysts believe that investors are set to shift from banks to resources stocks in 2025-26, amid speculation that the Commonwealth Bank’s outperformance will not be sustained. The stock gained 45 per cent in 2024-25, with its share of the benchmark index rising from nine per cent to nearly 12 per cent.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Retirees trying to change their super can’t log into their accounts

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Original article by Michelle Bowes
The Australian Financial Review – Page: 29 : 8-Apr-25

Financial advisers have cautioned superanuation fund members from making changes to their investment options – such as switching from shares to cash – in response to the global sharemarket ructions. Anxiety among super fund members has been heightened by the recent hacking attack on some funds. Access to the accounts of affected funds has been restored, but some still have limited functionality; this includes the ability to make changes to their investment options. Super funds are also emphasising to their members that superannuation is a long-time investment.

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Big investors steer clear of Fortescue, and miss major rally

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Original article by Joshua Peach
The Australian Financial Review – Page: 29 : 17-Apr-24

Analysis shows that pure-play iron ore miner and ‘green’ hydrogen aspirant Fortescue is now the least-held top-10 ASX-listed stock among institutional investors. Just one portfolio manager at more than 30 actively managed Australian equity funds has disclosed a substantial position in Fortescue so far in 2024. Fund managers have cited a number of reasons for shunning Fortescue, such as lower iron ore grades than its key rivals, the high turnover within Fortecue’s leadership team and its rising expenditure on hydrogen projects. However, Fortescue’s shares significantly outperformed BHP and Rio Tinto between September and February.

CORPORATES
FORTESCUE LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Investors pull out of equities on recession fear

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Original article by Joanne Tran
The Australian Financial Review – Page: 27 : 12-Jul-23

Data from global funds network Calastone shows that Australia fund managers’ net outflows totalled $2.8bn in the June quarter. Equities accounted for $1.65bn of the net outflows, while property accounted for $173m. The bearish investor sentiment toward higher-risk assets resulted in fixed income funds recording net inflows of $582m for the period. Teresa Walker of Calastone says there is no particular reason to favour the Australian sharemarket over offshore markets at present.

CORPORATES
CALASTONE

Future Fund just shy of $200b after 1.2pc quarter

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 16 : 26-Oct-21

The federal government’s Future Fund has posted a return of 1.2 per cent for the September quarter, following a record gain of 10.2 per cent for the three months to June. Australian shares gained 5.34 per cent in the September quarter, while international shares gained 4.68 per cent and emerging market shares lost 4.17 per cent. The Future Fund reduced its exposure to global shares during the quarter, while its allocation to infrastructure and private equity assets increased; the latter is now its biggest asset class. The sovereign wealth fund boasts nearly $200bn worth of assets under management.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

ASX equities to be hit by forced selling as workers grab super

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Original article by Melissa Yeo
The Australian – Page: 20 : 23-Apr-20

Matthew Ross of Goldman Sachs estimates that up to $44bn could be withdrawn from superannuation funds by people who have been financially hit by the pandemic, compared with the federal government’s forecast of $27bn. The early access scheme may result in liquidity issues for some super funds, which could in turn be forced to reduce their exposure to shares. Ross says this could potentially reduce the benchmark S&P/ASX 200’s market ­capitalisation by around 0.45 per cent.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

Cbus’ climate change quotas queried

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Original article by Joanna Mather
The Australian Financial Review – Page: 8 : 6-Sep-19

Construction industry superannuation fund Cbus will allocate one per cent of its $52 billion worth of funds under management to climate change initiatives. Its decision has been queried by Senator James Paterson, who said that establishing quotas seems like a bad idea; Paterson is the chair of the Parliamentary Joint Committee on Corporations and Financial Services. Scott Donald, the director of the Centre for Law, Markets & Regulation at the University of New South Wales, says Cbus is not violating any laws by making such a decision.

CORPORATES
CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, AUSTRALIA. JOINT COMMITTEE ON CORPORATIONS AND FINANCIAL SERVICES, UNIVERSITY OF NEW SOUTH WALES

Big super ready to fund infrastructure

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 9-Jul-19

IFM Investors CEO Brett Himbury has argued the case for industry superannuation funds to invest in public infrastructure, saying they are prepared to buy into both new and existing assets. Himbury concedes that there is still some concern about the partial sale of public assets; however, he stresses that unlike some private investors, super funds are focused on long-term returns rather than short-term profits. Former ACTU secretary Bill Kelty has proposed the creation of a new government-backed asset class that is focused on infrastructure.

CORPORATES
IFM INVESTORS PTY LTD, ACTU, INFRADEBT PTY LTD

Major funds bracing for bear market

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Original article by David Rogers
The Australian – Page: 13 & 18 : 19-Dec-18

Sharemarkets in Australia and Asia fell sharply on 18 December, in response to bearish sentiment on Wall Street. The S&P/ASX 200 has shed more than 7.4 per cent so far in 2018, and it is on track to record its biggest fall for the December quarter since 2008. Magellan Financial Group and WAM Capital have maintain a high level of cash holdings, although Randal Jenneke of T. Rowe Price sees the market volatility as a selective buying opportunity.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, WAM CAPITAL LIMITED – ASX WAM, T ROWE PRICE GROUP INCORPORATED, STANDARD AND POOR’S 500 INDEX, SHANGHAI COMPOSITE INDEX, NIKKEI 225 INDEX, RELIANCE WORLDWIDE CORPORATION LIMITED – ASX RWC, JAMES HARDIE INDUSTRIES PLC – ASX JHX, BHP GROUP LIMITED – ASX BHP, WOOLWORTHS GROUP LIMITED – ASX WOW, AUSTRALIAN LABOR PARTY

Future Fund wary as economy holds up

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 17 & 31 : 30-Aug-18

The Future Fund has posted a 2017-18 return of 9.3 per cent for 2017-18, compared with its targeted return of 6.1 per cent a year. It has achieved a return of 8.7 per cent each year over the last decade. Meanwhile, the Future Fund has reduced its cash holdings in the last year, while its exposure to Australian shares and the private equity sector has increased. MD David Neal says asset prices are likely to fall when synchronised global economic growth comes to an end, while chairman Peter Costello says the tariff war will also affect asset prices.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY