Bank hybrids are set to die a slow and lingering death in the wake of APRA deeming the securities no longer fit for regulatory purpose.

When this writer first set about a career in finance we were tasked with uncovering how much each ASX energy company was worth, with little

Trump is president of the US again, his second bite of the cherry after a brief four-year interlude. What could this mean for portfolios?

Stocks saw little movement following the announcement Bonds were muted on the statement, but rallied following the press conference The statement from the RBA remains broadly hawkish, with a focus on core inflation and ignoring false dawns The next meeting in scheduled for November, but it is not expected to be a ‘live’ meeting The September 2024 RBA Monetary Policy meeting was held yesterday. The board elected to leave policy settings unchanged, which was universally expe

The Australian bank regulator, APRA, is proposing to phase out Alternative Tier 1 capital (‘AT1’ or ‘Hybrid’) securities for local banks. As existing AT1 paper reaches its call date, the last being in 2032, banks will be required to replace it with Tier 2 capital. By 2032 bank AT1 securities will cease to exist, which leaves a bit of a hole in retail investors investment universe. In this piece I discuss a couple of viable alternative asset classes to AT1, and a couple of our

Late last year APRA announced it was reviewing whether AT1 securities were fit for purpose as effective loss absorbing capital.

You should know my views on private credit by now, but if not, I’ll refresh your memories. I’ve done private credit in the past, didn’t enjo

Private credit has attracted a lot of attention in local markets over recent months. One could say it’s the new ‘black’ of the investment world. In this piece, I’ll provide my thoughts and opinions on the sector, specifically some of the risks and pitfalls investors should be wary of if considering an allocation. In doing this I’ll also articulate why we don’t participate in this part of the market. A few recent publications linked below also shed some light on the asset clas

Understanding the health of the global consumer is essential to forecasting economic growth, considering that consumer spending contributes nearly 70% of US GDP. While the Artisan Partners Growth Team cannot precisely predict the onset of a recession, they are are less interested in businesses dependent on economic growth as the primary driver of their fundamental improvement. Instead, the team focus on identifying high-quality franchises exposed to secular trends and interna

Market pricing for the end of year cash rate was largely unchanged through May, with no rate cuts priced in until well into 2025, likely around mid-year at this stage. The recent inflation data has further cemented the growing belief that rate cuts are not imminent. While markets are not pricing in rate cuts for 2024, median consensus expectations are for one cut by year end, either at the November or December meeting. Click below for monthly reports: Mutual Cash Fund Mutual

Below we try to summarise the key points around demographics for the two most populous nations on the planet; China and India, as well as Au

Capital protection plus capital growth are the twin goals many of us have for our super. Here's how an actively managed share fund can achieve both. Equities have a lot to offer as an investment to grow retirement savings. Long term capital growth plus ongoing dividend income is a combination that makes shares a favourite among self-managed super funds (SMSFs) and retail investors. Fortunately, there are several ways to gain exposure to shares. Options include holding shares

What does the world of investment management really involve? Here is how growing wealth and preserving capital drive our daily routine. One of the great aspects of investment management is that no two days are the same. As an Australian equity fund manager, Chester Asset Management aims to find the high performers that can help our investors protect and grow wealth. As part of this goal, my day starts at sunrise. Australia's equity market is closely tied to US markets. So, I

Retail investors have proven their affection for bank issued hybrid securities. And why not? They have historically paid a stable income, greater-than-term-deposit rates and with less variability than bank dividends. However, with the bank regulator, APRA, reviewing whether hybrid securities are fit for purposes, there is risk retail investors will be prohibited from investing directly in hybrids. With an announcement on this matter expected shortly, we look at a likely incom

Why do we like the mid cap part of the market? The founders of the Artisan Partners Growth Team were attracted to mid-cap equities when they launched the US-focused Artisan U.S. Mid-Cap Growth Strategy in 1997. They viewed mid cap as an investing sweet spot—a compelling intersection of quality, competitively advantaged businesses with long earnings growth runways, in possession of experienced, savvy management teams. Most of the time smaller sized companies are early-to-mid-l

In the world of investment management, growing wealth and preserving capital can seem like a challenging task. However, there are those who are delivering on this delicate art, and among them stands Chester Asset Management. Led by Portfolio Manager Rob Tucker, Chester Asset Management has carved a niche for itself by adhering to a set of principles that prioritise high conviction, deep research, and unwavering commitment to preserving, then building capital. But what sets Ch

For fixed income investors, trying to predict the interest rate cycle and bond prices is like catching a falling knife, which in the end may have costly consequences. Fixed income investors don’t need to try their luck at catching. In the world of investing, reducing risk without significant sacrifice is a rare opportunity. However, within the fixed income space, there’s a chance to reduce risk in investor portfolios. While reducing risk is typically associated with lower ret

June 2023 was a milestone month for Mutual’s High Yield Fund (‘MHYF’) with its running yield breaking through 10% per annum, aided by the...

After repeated scandals and questionable strategic decisions, in March 2023, the 170-year-old Credit Suisse, a pillar of the much-vaunted Switzerland’s banking system, was on the cusp of failure. To avert financial crisis, the Swiss National Bank intervened. Credit Suisse was ushered into the reluctant arms of UBS in a shotgun wedding. Through this process, AT1 investors controversially suffered loss of capital while lower ranked common shareholders where left whole (the prec

Artisan's Approach to Biotechnology and Pharmaceutical Investing Health care has always been an important area of opportunity for the investment team. Within the sector, they tend to find the pharmaceutical and biotechnology industries particularly interesting given the continuous innovation. However, investing in these new innovative therapies can be risky with binary outcomes driven by clinical trial results and Federal Drug Administration (FDA) approvals. This necessitates