Challenger-backed Australian equity boutique, Greencape Capital, has soft-closed its Broadcap Fund to ensure its funds under management do not exceed $1 billion, even though there is only $550 million in the strategy at present. The Melbourne-based boutique, majority-owned by its four staff (of whom three worked together at Merrill Lynch Investment Managers) will take top-ups from existing institutional investors in the Broadcap Fund, and it remains open for relatively lucrative retail flows. But it will turn away prospective wholesale investors because the firm was “serious” about keeping FUM under $1 billion, according to Greencape co-founder and portfolio manager Matthew Ryland.
Kill complexity, just follow the money: Schroders
The head of Australian equities at Schroders Investment Management, Martin Conlon, has argued that good investment analysis looks first at the ungeared cashflows of companies. The industry’s favoured valuation yardstick, the price/ earnings ratio, was unreliable because it introduced leveraged profits into the process. The importance of finding the true source of cashflows was demonstrated during the Telstra floats, in which investors – Conlon included – bought the cashflows generated by a 90-year-old copper network, which turned out to be near the end of its useful life.
Kill complexity, just follow the money: Schroders
The head of Australian equities at Schroders Investment Management, Martin Conlon, has argued that good investment analysis looks first at the ungeared cashflows of companies. The industry’s favoured valuation yardstick, the price/ earnings ratio, was unreliable because it introduced leveraged profits into the process. The importance of finding the true source of cashflows was demonstrated during the Telstra floats, in which investors – Conlon included – bought the cashflows generated by a 90-year-old copper network, which turned out to be near the end of its useful life.
Hedge FoFs talk up process, not manager access, in post-crisis regime
Following the Madoff scandal and liquidity pressures of 2008, hedge fundof- fund (HFoF) managers say their game has changed from one of ensuring ‘access’ to rare and skilled managers to ‘process’, in which research and due diligence on underlying managers should deliver sound strategic advice and identify poor funds. The theme of access to rare hedge fund talent drove many HFoF sales pitches in the years preceding the financial crisis, but diminished in importance after Madoff and a period of widespread losses and liquidity pressures. Institutional investors are now putting more emphasis on the due diligence that HFoFs perform on managers, and want more insight into their investment processes.
Hedge FoFs talk up process, not manager access, in post-crisis regime
Following the Madoff scandal and liquidity pressures of 2008, hedge fundof- fund (HFoF) managers say their game has changed from one of ensuring ‘access’ to rare and skilled managers to ‘process’, in which research and due diligence on underlying managers should deliver sound strategic advice and identify poor funds. The theme of access to rare hedge fund talent drove many HFoF sales pitches in the years preceding the financial crisis, but diminished in importance after Madoff and a period of widespread losses and liquidity pressures. Institutional investors are now putting more emphasis on the due diligence that HFoFs perform on managers, and want more insight into their investment processes.
No more free kicks: Frontier’s vision for funds manager fees
The percentage-based MER should become a thing of the past, and performance fees should combine with a flat-dollar cost-recovery base fee if funds managers are to be motivated in a more sustainable way, writes Frontier Investment Consulting’s managing director, Fiona Trafford-Walker .
No more free kicks: Frontier’s vision for funds manager fees
The percentage-based MER should become a thing of the past, and performance fees should combine with a flat-dollar cost-recovery base fee if funds managers are to be motivated in a more sustainable way, writes Frontier Investment Consulting’s managing director, Fiona Trafford-Walker . Target-date funds are dangerously misused: survey
New research from the US shows that a high proportion of both pension fund sponsors and individual investors are misusing target-date funds, which is likely to lead to suboptimal investment outcomes. The research, by global manager Janus Capital in association with a magazine company and a research group, shows that investor education is particularly inadequate for these types of funds, where 20 per cent of those who had target-date funds thought the products came with a capital guarantee. More than two-thirds believed they needed to be blended with other funds, even though the whole point is that the vehicles are balanced but with asset allocations which change with time , thus designed to be used as default options.
Target-date funds are dangerously misused: survey
New research from the US shows that a high proportion of both pension fund sponsors and individual investors are misusing target-date funds, which is likely to lead to suboptimal investment outcomes. The research, by global manager Janus Capital in association with a magazine company and a research group, shows that investor education is particularly inadequate for these types of funds, where 20 per cent of those who had target-date funds thought the products came with a capital guarantee. More than two-thirds believed they needed to be blended with other funds, even though the whole point is that the vehicles are balanced but with asset allocations which change with time , thus designed to be used as default options.
Australia’s ‘regional hub’ dream stymied by tax system
Australia’s vast distance from the world’s financial centres and its complicated taxation system are strong barriers to offshore fund managers setting up an office here to pursue their growth strategies in Asia-Pacific markets. Surveying managers attending the Opportunity Australia conferences in London, New York and San Francisco, law firm Henry Davis York (HDY) found that 36 per cent of respondents planning to set up an Asia-Pacific office were undecided as whether they would choose Australia as a regional base. Asked about the barriers to doing business in Australia, respondents said the distance from major financial centres, its time zone, complicated tax system, high tax rates and the costs of setting up a business were influential factors.
Australia’s ‘regional hub’ dream stymied by tax system
Australia’s vast distance from the world’s financial centres and its complicated taxation system are strong barriers to offshore fund managers setting up an office here to pursue their growth strategies in Asia-Pacific markets. Surveying managers attending the Opportunity Australia conferences in London, New York and San Francisco, law firm Henry Davis York (HDY) found that 36 per cent of respondents planning to set up an Asia-Pacific office were undecided as whether they would choose Australia as a regional base. Asked about the barriers to doing business in Australia, respondents said the distance from major financial centres, its time zone, complicated tax system, high tax rates and the costs of setting up a business were influential factors.
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