Climate change and its potential impacts is one of the world’s greatest challenges. While climate change is a long term issue, there are potential investment risks and impacts in the short term. A challenge for all parties is that the impacts, risks and opportunities related to climate change are likely to be nuanced at the individual asset or company level, and vary across asset classes, industries and geographies.
In this month's issue of MyConsultant, Head of Responsible Investment Tim Conly provides an update on the latest regulatory and policy views, climate change risks and opportunities, and JANA’s view on how asset owners can monitor and manage the investment impacts of climate change. Read more about CLIMATE CHANGE & INVESTING: THE CURRENT STATE
In the 2018-19 Budget, the Government announced that it is developing a retirement income framework. The purpose of the framework is to provide retirees with greater choice of retirement income products and provide retirees with the right information to make a choice.
The Government has proposed that a retirement income covenant will be introduced in the Superannuation Industry (Supervision) Act 1993, which will require Trustees to develop a strategy that would help members achieve their retirement income objectives. The Government proposes to legislate the covenant by 1 July 2019, with commencement to be delayed until 1 July 2020.
The proposed covenant would require Trustees to offer Comprehensive Income Products for Retirement (CIPRs): products that provide individuals income for life, no matter how long they live. Members will not be required to take up a CIPR at retirement, but the introduction of CIPRs will increase the choice of retirement products available and improve access to products that efficiently manage longevity risk.
On 17 May 2018, the Government released a position paper on the Retirement Income Covenant, for public consultation. Public consultation closed on 15 June 2018.
JANA has participated in this public consultation. Read more about JANA’s Submission to the Treasury - Retirement Income Covenant Position Paper
JANA has been recommending diversifying strategies within its asset allocation advice for some time, recognising that most traditional asset classes are at best fully valued, or in the case of bonds outright expensive. In this edition of MyConsultant we will profile one example of a diversifying strategy that can play a role in further diversifying an investment portfolio. Read more about Global Macro – An Alternative Investment Strategy
The acceleration in passive investing, and in particular the rise of Exchange Traded Funds (ETFs) as a popular approach for investing passively, is a phenomenon that is well documented. Without seeking to argue the merits or disadvantages of ETFs or other passive instruments, the growth of its market share and speed of uptake raises an obvious question as to what impact the rise of passive investing is having on markets, be it from an excess return or risk perspective. JANA reflects on this question in this month’s issue of MyConsultant. Read more about Changing Market Dynamics - The Rise of Passive Investing and Exchange Traded Funds (ETFs)
Operational alpha is an often overlooked component of investment management that helps investors to recoup post trade leakage and may assist in enhancing returns, particularly during times of low returns. This paper introduces a number of operational alpha concepts, ranging from relatively passive to the quite complex. Read more about Generating Operational Alpha
JANA is pleased to announce that it will be the primary Investment Consultant for the South Australian based, Funds SA . JANA began working with Funds SA on the 1st January 2018 and the appointment of JANA followed a comprehensive tender review process undertaken by Funds SA.
Jim Lamborn CEO of JANA commented that ‘the depth and breadth of the JANA research and consulting capabilities was well aligned with Funds SA and we look forward to working with the internal team’.
JANA is an established investment advisory firm with 30 years' of experience and over $375bn funds under advice. JANA has a strong and successful track record in delivering outstanding returns with our clients. In the recent (December 2017) SuperRatings SR 50 Balanced report, JANA advised 6 of the top 10 performing funds and 5 of the top 5 performing funds on a 1 year basis. JANA look forward to the partnership with Funds SA. Read more about JANA wins $30bn public sector mandate
JANA’s long serving Head of Investment Outcomes, Steve Carew has analysed the performance of JANA’s advised funds over the long term, and concludes that size of fund has not been a major factor in investment performance outcomes.
“Over the medium term (i.e. the past five years) on average, many of our medium and smaller sized funds have performed just as well as the largest mega-funds.”
Over the very long term (i.e. of 10 years), the JANA advised mega-large funds have performed a little better as a group, but it has not been consistent across all funds”, Mr Carew said. Read more about Size no barrier to good performance
We have been bombarded with countless articles about Amazon’s imminent ‘devastation’ of the Australian retail sector over the past year. In this month’s edition of MyConsultant, Alastair McIntosh – from JANA’s Property Research team – compares Australia’s online-retail sector with other global markets, reviews Amazon’s potential impact on Australian Retail and finally, outlines which types of Retail property investors should own in the future, now that online retail will become a major component of our retail landscape. Read more about Amazon: Is Retail Property in Trouble?
Credit investments have played a growing role in institutional portfolios since the beginning of the Global Financial Crisis. At that time, significant dislocations in credit markets provided an opportunity for outsized returns, resulting in many institutional investors making their first meaningful, standalone allocations to credit. Fresh from two weeks in the US meeting with a broad array of credit managers, this month’s MyConsultant sees the Fixed Interest team reflect on the state of credit markets today and the changing role of credit in investor portfolios. Read more about Credit Investments: Then & Now