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 (ASX:XJO) gains on oil, iron ore rally, Incitec unit gets a bid, RBNZ on hold
Both major Australian markets gained 0.4 per cent on Friday, with the All Ordinaries (ASX:XAO) benefitting from a significant jump in the energy sector. Signs of a slowing of Russian oil supplies saw the oil price surge, benefitting the likes of Woodside (ASX:WDS) and Santos (ASX:STO) which gained 2.7 and 1.2 per cent. It was a similar story for the materials sector, with iron ore future trading 2 per cent higher in Asia on hopes of stimulus, benefitting both BHP (ASX:BHP) and Fortescue (ASX:FMG) which finished 2.5 and 1.7 per cent higher. The Reserve Bank of New Zealand is set to keep rates on hold for an extended period of time after pausing again at today’s meeting with the board confident that inflation is set to moderate as supply constraints end. Incitec Pivot (ASX:IPL) added 5.4 per cent after the company confirmed it has received a number of offers for its fertiliser business, which are being carefully considered.
KMD Brands sinks on consumer spending, Platinum outflow continue
Kathmandu owner KMD Brands (ASX:KMD) fell by close to 10 per cent after the company offered an underwhelming trading update to the market. The group now expects sales for the financial year to hit NZ$1.1 billion, down on prior expectations, with earnings set to fall between NZ$105 and $110 million due to a slower start to the winter trading period. Platinum Asset (ASX:PTM) was the latest fund manager to post an underwhelming result, with another $232 million in net outflows for the month of June. The company also confirmed it had earned just $1 million in performance fees during the financial year, surprising given the conditions suited their ‘value’ approach to investing. The group now has $17.3 billion in assets under management. Fleet tracking firm EROAD (ASX:ERD) gained 2.1 er cent after the company confirmed it will respond to a $134 million bid from Toronto-listed firm Constellation Software, in signs that acquisition are unlikely to slow in Australia.
S&P500 nears 15-month high as inflation continues to dive, Domino’s gains on Uber deal
In what was likely a surprise to few, the US inflation rate fell from 4 to 3 per cent overnight, taking it to within the Federal Reserve’s target band. Naturally, as a point to point measure the slowing rate is driven by the significantly higher prices that arose this time last year. Monthly inflation was just 0.2 per cent, the smallest in two years, which sent bond yields down significantly as investors hope that rate hikes may be nearing an end or that the economy could deliver an improbable soft landing. Shares in Domino’s Pizza (NYSE:DPZ) gained more than 11 per cent after the company announced a partnership with Uber (NYSE:UBER) which will see it’s deliver option added to the app. Lucid Group (NYSE:LCID) fell by over 11 per cent after the EV maker delivered far fewer vehicles than expected from its Arizona facility, which will impact on sales.
