Alpha Live coverage happening now; Australian shares are poised to fall; Air NZ lifts profit forecast; Sandfire copper production falls in March quarter. Follow updates here.
The head of the $200 billion Future Fund declared the easy gains fuelled by the era of cheap money is over, and the sovereign wealth giant is prepared to back stock pickers again.to low-cost index tracking strategies, terminating its mandates with fund managers on the belief markets were so warped by central bank policy that it was too hard to justify paying for skill in such constrained conditions.
Its new stance, which also introduces a program to invest in domestic small caps for the first time, is a response to a changed world in which central bank policies no longer dominate equity market returns, and stock pickers can truly add value.Elke Meitzel “There’s a richer universe for active management,” the Future Fund’s chief executive Raphael Arndt toldHis comments – to be broadcast live – will articulate how the Future Fund is positioning for a tougher investing environment where only the best investors will succeed.
The fund, Dr Arndt says, will do “everything we can to search out skill wherever it exists”, and is prepared to pay high fees if required to access high performing funds. Dr Arndt says investors have always faced a trade-off between paying fees to active managers, seeking low-cost alternatives such as passive exchange-traded funds, and creating internal teams to manage money.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How the Australian housing industry boomed into a generational problemThe COVID-19 pandemic only exacerbated longstanding problems in the country’s housing market.
Read more »
TODAY IN HISTORY: Australian and New Zealand Army Corps land at GallipoliThe Australian and New Zealand Army Corps (ANZAC) landed at Gallipoli in western Turkey on April 25 in 1915 during the Dardanelles Campaign of World War I.
Read more »
Australian lithium sector can win from Chile’s own goalOPINION: Chile’s plan to partly nationalise its lithium sector could boost prices and divert capital to more friendly lithium hubs, such as Australia.
Read more »
BHP appoints South Australian copper tsarMichelle Ash will follow OZ Minerals’ mines to new owner BHP, where she will drive the development of a copper province in South Australia.
Read more »
Commodity prices affected by Australian dollar’s ‘come down’Prices for commodities such as coal and iron have been greatly affected by the Australian dollar's “come down,” says Mining Morningstar Equity Analyst Jon Mills. “Thing’s like worries over the world’s financial systems and various banks going bust in the US and elsewhere have taken precedence,” Mr Mills told Sky News Business Editor Ross Greenwood. “If the Aussie dollar is down and has come down in the past quarter, that actually offsets a lot of the damage from lower iron ore prices and thermal coal prices. “It’s not just commodity prices; obviously, foreign exchange as well, is another big determinant.”
Read more »
Defence shake-up ‘risks underestimating Australian manufacturers’A major shake-up of Australia’s military strategy and procurement processes risks underestimating the country’s manufacturing capacity and overlooking domestic industry, a Melbourne defence company fears.
Read more »