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

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Matthew Ross of Goldman Sachs estimates that up to $44bn could be withdrawn from superannuation funds by people who have been financially hit by the pandemic, compared with the federal government’s forecast of $27bn.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

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

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

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

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

Risks making volatility an asset

Original article by Samantha Bailey
The Australian – Page: 30 : 27-Jul-18

The prices of asset classes such as equities, bonds, commodities and real estate have risen sharply as global interest rates begin to rise from historic lows. Triple3 Partners’ chief investment officer Simon Ho says now is a good time to invest in volatility, which has been recognised as an asset class for more than a decade. Triple’s portfolio includes about $70 million worth of volatility strategies.

CORPORATES
TRIPLE THREE PARTNERS PTY LTD, TRIBECA INVESTMENT PARTNERS PTY LTD

Aussie stocks still have room to grow: BlackRock

Original article by David Rogers
The Australian – Page: 27 : 26-Jul-18

The BlackRock Concentrated Industrial Share Fund posted a return of 24.45 per cent net of fees in 2017-18, and its annual return has average 19 per cent since it was founded in December 2015. The fund’s biggest holdings include Wesfarmers, Qantas and Boral, while its focus is on mid-capitalisation industrial stocks. Charlie Lanchester of BlackRock is upbeat about the outlook for Australian industrial stocks.

CORPORATES
BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, BLACKROCK CONCENTRATED INDUSTRIAL SHARE FUND, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, BORAL LIMITED – ASX BLD, TREASURY WINE ESTATES LIMITED – ASX TWE, ARISTOCRAT LEISURE LIMITED – ASX ALL, STANDARD AND POOR’S ASX 200 INDEX, PRAEMIUM LIMITED – ASX PPS, KOGAN.COM LIMITED – ASX KGN, TRANSURBAN GROUP LIMITED – ASX TCL, SYDNEY AIRPORT – ASX SYD

Pure play coal just doesn’t make the cut for UniSuper

Original article by Ben Potter
The Australian Financial Review – Page: 15 & 20 : 5-Jul-18

UniSuper’s Talieh Williams says the superannuation fund takes into account a range of factors when deciding whether to invest in a stock. UniSuper has relatively little exposure to the coal sector, and pure-play coal miners in particular, which she attributes to the super fund’s rigorous investment processes. Meanwhile, QSuper says it invests across the S&P/ASX 200 Index and therefore does have exposure to pure-play coal producers. Yancoal Australia recently blamed fund managers’ lack of interest in a capital raising for its proposal for a dual listing in Hong Kong.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, UNISUPER LIMITED, QSUPER LIMITED, STANDARD AND POOR’S ASX 200 INDEX, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WHITEHAVEN COAL LIMITED – ASX WHC, NEW HOPE CORPORATION LIMITED – ASX NHC, CLIMATE ACTION 100+, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, ADELAIDE BRIGHTON LIMITED – ASX ABC, BORAL LIMITED – ASX BLD, SANTOS LIMITED – ASX STO, QANTAS AIRWAYS LIMITED – ASX QAN, BLUESCOPE STEEL LIMITED – ASX BSL, WOOLWORTHS GROUP LIMITED – ASX WOW, WOODSIDE PETROLEUM LIMITED – ASX WPL

Banks to remain a drag on bourse, says brokers

Original article by David Rogers
The Australian – Page: 30 : 8-Jun-18

Shares in Australian banks could come under further downward pressure in coming weeks as a result of tax-loss selling before the end of the financial year. David Cassidy of UBS warns that there is little prospect of a rebound in banks’ earnings in the near-term, and investors should retain "underweight" positions with regard to the sector. Richard Wiles of Morgan Stanley is also bearish about the sector, and recently downgraded share price targets for the sector by an average of seven per cent.

CORPORATES
UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BHP BILLITON LIMITED – ASX BHP, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, RETAIL FOOD GROUP LIMITED – ASX RFG, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API, PERPETUAL LIMITED – ASX PPT, MYER HOLDINGS LIMITED – ASX MYR, ISENTIA GROUP LIMITED – ASX ISD, AMP LIMITED – ASX AMP, QBE INSURANCE (INTERNATIONAL) LIMITED, EUROPEAN CENTRAL BANK, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX

Investors follow Future Fund to lift share exposure

Original article by James Kirby
The Australian – Page: 32 : 2-Feb-18

A report from Investment Trends shows that in early 2017 the average investor expected a return of just 1-5 per cent from Australian equities for the calendar year, but the ASX achieved a full-year return of 11.8 per cent. Investment Trends’ King Loong Choi says the firm’s annual survey shows that the proportion of investors whose main goal is to maximise capital growth has risen from 18 per cent to 25 per cent in 2018. Choi adds that retail investors who increase their exposure to equities in 2018 may choose to do so via investment vehicles such as exchange-traded funds rather than directly buying shares.

CORPORATES
INVESTMENT TRENDS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY