Australian banks are having their toughest time attracting investors, according to new analysis from Copley Fund Research, which monitors flows in funds with $1.2 trillion under management.
An exodus by fund managers has left 91% of the 430 funds in Copley’s global analysis with zero exposure to the sector. That’s the lowest take-up on record. On average, allocations to the industry are equivalent to just 0.05% of global funds.
“Regulatory concerns, faltering housing markets and a low interest rate environment have prompted global investors to all but throw in the towel on their Australian bank investments,” said Steven Holden, CEO of Copley Fund Research. “Opportunities elsewhere in the Asia-Pacific region are proving more attractive, such as Singapore and India.”
Copley Fund Research provides data and analysis on global fund positioning, fund flows and fund performance.
This report is based on the latest published filings as of 31 August 2019 from three fund categories:
Global: $800bn total AUM, 432 funds
Global EM: $350bn total AUM, 193 funds
Asia Ex-Japan: $65bn total AUM, 104 funds
But they are so well run, so profitable and so superbly regulated.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Silly global investors. Can’t they see where the share prices are at? Boomtime levels.
DPM
Only themselves to blame. AMP on the ropes again. Might break all time low about 87% down from high. Honestly, how low does it need to go before this becomes an issue? Everyone is pulling their money out and they are still paying a div yield of 7.6%
PeachyMEMBER
Last time I bought into something that was 80% down, I banked over 1,000% profit.
Maybe amp could be the next such investment. I need to think about it.
DPM
If it breaks 1.6 its anyones guess where to floor is.
AFIC has just announced they are completely out of AMP. $100m gone.
What,
don’t they have complete confidence in Scott Morrison,
like Scott Morrison has in Scott Morrison?
Don’t they understand the slogan “jobs and growth”
haroldusMEMBER
How good are slogans!
GavinMEMBER
The Jimmies took our jerbs!
Narapoia451MEMBER
He’ll burn for them….
Burn their money for them, they’ve obviously decided.
proofreadersMEMBER
Don’t forget – there is a dynamic duo: ScoMo and Josh, albeit so far ScoMo is the only one prepared to burn for Straya (or at least quiet Strayans?) albeit we might be waiting a while for the burn?
nexus789MEMBER
You forgot innovation…
SoMPLSBoyMEMBER
Not surprised the investment pros are looking elsewhere. The big 4 banks may have been ‘darlings’ before when they could operate their corrupt models with impunity, but they’ve been caught red-handed and will be paying back $Bn’s to settle up the rip-offs under the remediation programs.
Pillars (crumbling) of the community.
Ino
Pillocks of the community…
TailorTrashMEMBER
Had some dealings with one of the big 4 last year …where I needed a little flexible personal service
Had been with the bank for 40 years ….from back when it was a small bank ( with a local manager ) before it was eaten up in mergers to a big 4 .
People I dealt with were all Chinese,Korean or Punjabis who wanted me to submit my life history in triplicate .
Thought ………..no fcuking way !
Had a dormant account with them …….so shuffled a big chunk of funds through it and achieved what I needed
I have no faith in the big 4 and their vibrant employees ……and I have virtually no money in them……….they are like what Straya has become ……..a shell …..
GavinMEMBER
Not sure it’s the vibrants fault, just big companies become big slow machines… where they must follow a process even if the process makes no sense in your situation. That’s why I like smaller companies, they tend to actually give a feck..
Silly global investors. Can’t they see where the share prices are at? Boomtime levels.
Only themselves to blame. AMP on the ropes again. Might break all time low about 87% down from high. Honestly, how low does it need to go before this becomes an issue? Everyone is pulling their money out and they are still paying a div yield of 7.6%
Last time I bought into something that was 80% down, I banked over 1,000% profit.
Maybe amp could be the next such investment. I need to think about it.
If it breaks 1.6 its anyones guess where to floor is.
AFIC has just announced they are completely out of AMP. $100m gone.
I appreciate that this is not a low-risk play. 😉
Forget AMP. Buy Deutsche Bank Aktiengesellschaft.
Yeah, had ‘fun’ doing that once. Look up BCD on the ASX.
Oh, wait. You can’t. :/
Are you Shane Oliver by chance?
Shhhh!
What was the date of the report?
https://www.youtube.com/watch?v=0oBx7Jg4m-o
What,
don’t they have complete confidence in Scott Morrison,
like Scott Morrison has in Scott Morrison?
Don’t they understand the slogan “jobs and growth”
How good are slogans!
The Jimmies took our jerbs!
He’ll burn for them….
Burn their money for them, they’ve obviously decided.
Don’t forget – there is a dynamic duo: ScoMo and Josh, albeit so far ScoMo is the only one prepared to burn for Straya (or at least quiet Strayans?) albeit we might be waiting a while for the burn?
You forgot innovation…
Not surprised the investment pros are looking elsewhere. The big 4 banks may have been ‘darlings’ before when they could operate their corrupt models with impunity, but they’ve been caught red-handed and will be paying back $Bn’s to settle up the rip-offs under the remediation programs.
Pillars (crumbling) of the community.
Pillocks of the community…
Had some dealings with one of the big 4 last year …where I needed a little flexible personal service
Had been with the bank for 40 years ….from back when it was a small bank ( with a local manager ) before it was eaten up in mergers to a big 4 .
People I dealt with were all Chinese,Korean or Punjabis who wanted me to submit my life history in triplicate .
Thought ………..no fcuking way !
Had a dormant account with them …….so shuffled a big chunk of funds through it and achieved what I needed
I have no faith in the big 4 and their vibrant employees ……and I have virtually no money in them……….they are like what Straya has become ……..a shell …..
Not sure it’s the vibrants fault, just big companies become big slow machines… where they must follow a process even if the process makes no sense in your situation. That’s why I like smaller companies, they tend to actually give a feck..