Global market volatility intensified this week with the introduction of new US tariffs, triggering what some analysts are calling a "tariffs-induced doom loop." Trade war concerns have rattled the pre-election economic outlook in Australia, while the RBA has made its pre-election rate call. Investors have been advised to stay calm amid crises, with experts pointing to the Australian equity market as attractive in the sea of volatility.
The managed accounts sector continues to grow, now representing a $200 billion market that warrants increased scrutiny. A decade of innovation has spurred this growth, though concerns remain about managing conflicts with in-house managed accounts.
In fund developments, Lakehouse Capital has listed its first fund on the ASX, while the Platinum funds merger will proceed despite PM Capital hitting back after its offer was rejected. Macquarie has terminated its Australian equity funds, and Warakirri has terminated its ethical global equities fund.
Innovation continues in the digital space, with Perpetual building a digital wholesale term deposit marketplace and Calastone unlocking blockchain capabilities with a tokenisation solution. CMC Markets will tap real-time trading data from TradingView, enhancing its trading platform capabilities.
The "great wealth transfer" is creating significant adviser opportunities, with Fidelity research showing Australians need help navigating inheritance. Notably, over half of inheritors lack an ongoing adviser relationship, representing a significant untapped market for financial advisers.
In investment trends, advised investors and SMSFs are leading the private credit charge according to Ausiex data. However, sleepy savings rates are hurting SMSF returns as cash allocations remain elevated.
Alternative investments continue to gain traction with various reports highlighting that the lack of private assets is a threat to firms despite regulatory pressure, and wealth managers incorporating private assets and AI into growth plans. Data centres have been identified as a significant growth sector for Australia.
APRA has hit ANZ with a $1 billion capital penalty, signalling the regulator's continuing focus on governance standards. ASIC has warned of threats from "hydra-like" scammers after obtaining court orders to shut down 95 companies.
In Europe, DWS has been fined $43 million for greenwashing, setting a global precedent for ESG disclosure standards. This comes as regulatory upheaval has seen many firms putting ESG policies on hold or walking them back.
The cryptocurrency sector is facing increased scrutiny, with licensees airing their views on Bitcoin on approved product lists. Industry sentiment has shifted as Bitcoin trails the equities selloff, challenging the "digital gold" narrative.
Significant personnel changes include Fitzpatrick naming a new head of product and appointing the former CFS product executive to this new role as part of an expansion of their senior leadership team.
Zurich Australia has appointed a new investment chief, while Magellan has named new infrastructure co-leads. Former New Zealand Super Fund CEO Sue Brake has joined Aware Super's committee.
In corporate moves, Allegro has sold Questas' stake for $375 million, and State Street Global Advisors has taken a stake in a customised portfolio platform.
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