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

The August reporting season has highlighted two ongoing trends that have persisted over the past year. Firstly, the banking sector continues to outperform the resources sector, solidifying its position as a leading force within the ASX 300. Secondly, the technology sector's strong earnings per share (EPS) momentum continues to be rewarded with price-to-earnings (PE) expansion.

Chester Asset Management Portfolio Manager and Managing Director Rob Tucker highlights key stock decisions within the Chester High Conviction Fund during the June quarter. The three stocks - two buys and one exit - reflect Chester’s focus on asymmetrical risk – the upside versus downside risk of all stock positions in the portfolio. Rob describes what’s top of mind for Chester looking ahead. In light of a relatively calm equity market in the first half of 2024, Rob believes s

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

The Premium Small Companies Fund has been awarded the prestigious 2024 Money Management Fund Manager of the Year Award

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

OC Investment Analyst Aaron Yeoh joins Livewire's Chris Conway in "Buy Hold Sell: 5 Growth Stocks for the Next 5 Years."

With APRA on the case for whether hybrid securities should remain accessible to retail investors, Mutual Limited CIO Scott Rundell offers his take on why hybrids have been popular, are they still fit for purpose and what is an alternative should the hybrid pin be pulled?

Australian mid, small and micro-cap specialist OC Funds Management is pleased to announce the appointment of Nga Lucas as a Portfolio Manager for the mid-cap portfolio. Prior to commencing with OC, Nga worked at Australian Foundation Investment Company (AFIC) for over a decade where she served as a Senior Investment Analyst specialising in Technology, Telecommunications, Industrial and small companies, and assisted with the management of the portfolio. Nga’s experience prior

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