Global investors flee Aussie banks

Via Martin North:

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.

Comments

  1. 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%

  2. 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”

  3. 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.

  4. 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 …..

    • 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..

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