July 14, 2024
The five ‘mega forces’ affecting long-term returns: BlackRock


From multiple fund closures to a blockbuster IPO, Money Management collates the most significant news in the funds management industry over the past three months.

The second quarter of the calendar year saw an array of noteworthy announcements from some of the largest fund management firms, including Platinum Asset Management, First Sentier Investors (FSI), T. Rowe Price, Schroders and Ausbil.

April

Following the announcement of its urgent turnaround strategy in February to combat net outflows and declining revenue, Platinum chief executive Jeff Peters shared a progress update in April. He stated that the firm will be reorganising its research function, reviewing its portfolio construction and risk management processes, and examining existing product line features.

Also in April, FSI announced it will close four investment teams: the Australian Fixed Income, Global Credit, Equity Income and Emerging Companies teams. These teams encompass 10 funds combined, affecting $14 billion in assets under management. The changes are the result of “shifting industry dynamics such as client consolidation, internalisation of investment management and ongoing margin pressures as impacting the outlook for investment businesses”.

In the same week as FSI, T. Rowe Price announced it will close its Australian equity strategy as it believes it is unlikely to gain sustainable scale. According to the global asset manager, the closure was also tied to the departure of the fund’s portfolio manager Randal Jenneke in July, who had been at the firm for the past 11 years and is the head of Australian equities.

May

Schroders Australia announced in May that it will merge its Australian fixed income and Australian multi-asset teams under a combined investment capability to improve the alignment of the firm’s strategies with the evolving needs of clients. This will see Stuart Dear, head of Australian fixed income, depart the firm after 11 years. He joined the firm in 2012 from a role as a senior portfolio manager at abrdn.

June

Last month, Ausbil confirmed a restructure of its Australian equities team as John Grace departs after 23 years, who is the co-head of Australian equities and portfolio manager for the Australian Emerging Leaders Fund. He will continue in these capacities until the end of 2024. David Lloyd was appointed as portfolio manager on the Australian Emerging Leaders Fund and will work alongside Grace until his departure to form an orderly transition. The firm also made several internal changes to its Australian equities management which took effect from 1 July.

Finishing the month with a bang, Mexican restaurant chain Guzman y Gomez (GYG) listed on the ASX in a blockbuster $2.2 billion IPO. It raised $335 million with shares priced at $22 each. The IPO was the largest float since the listing of employment and workplace services provider APM Human Services in December 2021. Among the largest 20 shareholders are Barrenjoey with 10 per cent, Aware Super at 6 per cent, Cooper Investors at 2.2 per cent, and State Street Australia at 0.9 per cent.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *