The Future Fund has warned that the current surplus of capital sloshing around the world would not last and “those who treat us well when capital is abundant will find us to be a great partner through leaner times” says Wendy Norris deputy chief investment officer.
The search for yield is pushing a lot of investors into assets further up the risk curve and when the investment winds change as they often do, so will the returns from the different asset classes.
Wendy Norris told the recent Australian Investment Council Conference that the extended payout date for the fund from 2020 to 2026 was a major development and forced the fund to restructure the investment processes and risk management.
Whitehaven Coal last week released their sustainability report and said in parts that Whitehaven would enjoy further protection from demand destruction by continually providing higher quality coal and would remain cash flow positive over the next 20 years under the scenario outlined.
Whitehaven would enjoy further protection from demand destruction by continually providing higher quality coal and would remain cash flow positive over the next 20 years.
A few snippets from the past week include:
*China’s industrial production growth in August grew at the slowest pace in 17 years.
*According to a recent report the sloppy recycling system in Australia is missing out on millions of dollars per year in revenue from useable waste. The one bin recycling collection system leads to high contamination rates and different compartments in the bin and the truck collecting it being one solution.
*Wonder how British authorities will view the proposed Hong Kong exchange bid for the London Stock Exchange?
Regulators have previously blocked the merger between the London Exchange and Deutsche Bourses.
*Market darling and electronic payments mob iSignthis came down to earth last week losing 40 per cent in a matter of days on governance concerns before a small recovery.
*According to Google data and a recent article published on Friday the 13th “Recession fears have peaked and things are looking up”.
Some analysts reckon the current bout of “Trumponomics” will continue right up to the next US election. The meeting of the US Federal Reserve later this week may shed a different light on the subject and some pundits say markets climb a wall of worry.
*Adelaide based Clean Seas is looking to expand its production of Kingfish to 6,000 tonnes by 2025 from the 3,500 tonnes in fiscal 2019.
*Stem cell company Mesoblast’s shares jumped 50 per cent over the past week after announcing a strategic partnership with Grunenthal.
*The Australian Tax Office has warned that “clever” partners of Australia’s big accounting groups are eroding the integrity of the tax system. Capital moves to where it is most efficient and it may be better to have more tax on land and housing which can’t move. After all it is taxpayer’s money that pays for schools and roads that “inadvertently” increases the value of land around it, and if it is a home the capital gains on that becomes tax free. This is not exactly fair for the system or for people who “just happen” to live somewhere else.
Trade wise we were stopped out of Charter Hall and bought parcels of Senex and Whitehaven Coal.
On Monday, after the weekend attack on Saudi oil infrastructure, buy signals were triggered on Santos and Resolute and we bought a parcel of each for the educational portfolio. More commentary and charts on the Courier website Wednesday.