The alternatives sector is unique in that it’s largely defined by what it’s not. Accordingly, how you fit alternatives within your existing asset class structure will depend on relativity, and how the investments interact with the other asset classes according to Atchison’s Kev Toohey.
The private markets juggernaut is one that has also thrown up a wealth of data that other players can use to sharpen up due diligence when making their own investment decisions – especially in the growing secondaries market.
ASX sets new record high, backs off
ASX down on energy, PEXA set to IPO, Nuix downgrades again
The ASX200 (ASX: XJO) started the day strongly, hitting a new record before ultimately closing 0.3% lower as energy, down 1.6%, and the IT sector, -0.9% continued to drag.
The weakness comes ahead of a huge week for the Australian economy, with the Reserve Bank of Australia meeting tomorrow and quarterly GDP figures due on Wednesday.
This all comes with the backdrop of a potential extension to Victoria’s COVID-19 snap lockdown.
Link Administration Holdings Ltd (ASX: LNK) fell close to 7% today after management decided to rebuff the $3 billion offer for the PEXA property settlement platform which they own 44% of.
This was an interesting turnaround, to say the least, with the slow growth company a willing seller just a few months ago but now ultimately agreeing to retain an increase in its stake ahead of a June initial public offering.
The valuation was 70% higher than its previous estimate yet the share price finished lower.
Staying with IPOs, embattled data player Nuix Ltd (ASX: NXL), which I bought after the first downgrade, has confirmed its revenue will be even lower in FY21 than it expected just five weeks ago.
NXL shares fell 18% with revenue now $173 to $182 million down from $194 million but confidence clearly evaporating.
IOOF finalises MLC purchase, REA offloads Asian stakes, lending weakens
Vertically integrated financial advisory group IOOF Holdings Limited (ASX: IFL) confirmed the finalisation of its acquisition of MLC from the National Australia Bank (ASX: NAB).
Shares moved 0.8% higher as the group welcomes 406 MLC-licensed financial advisers and boosts its funds under management, administration, and advice to close to $494 billion.
Management reiterated the aim of $150 million cost savings before FY22, yet it seems a difficult business model to reinvent given the backdrop of increasing regulation.
Property platform REA Group Limited (ASX: REA) finished 0.5% higher after confirming it would be offloading its investments in Malaysian and Thai property platforms to PropertyGuru, a leader in the region.
Management highlighted this as a ‘unique opportunity to create the most compelling digital classifieds company in South East Asia’.
Any hope of a debt-fuelled recovery was dashed after business lending fell 0.3% in April and 3% for the 12 months.
US markets closed ahead of employment data
US futures are positive as the market is closed for Memorial Day ahead of a major set of employment data to be released later in the week.
Oil rallied strongly after OPEC highlighted an expected run-down in inventories if current supply levels are maintained ahead of an expected recovery in demand.
Gold delivered its biggest monthly gain since July.
