Latest news with #fundManagers
Zawya
10-07-2025
- Business
- Zawya
The Capital Market Authority approves a set of regulatory enhancements for investment funds in the Kingdom
The Capital Market Authority ('CMA's") Board has approved a set of enhancements aimed at developing the regulatory environment for investment funds in the Kingdom. This includes amendments to the Investment Funds Regulations, the Real Estate Investment Funds Regulations, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority. The amendments approved by the CMA Board aim to develop the regulatory framework for investment funds to enhance the asset management industry and strengthen its competitiveness by identifying areas for improvement and adopting global best practices. The amendments also include the development of additional regulatory provisions that support the growth of the investment fund and real estate investment fund sectors, enhance transparency and disclosure for fund unit holders, and establish governance standards that ensure greater protection of investors' rights. The key amendments focused on enhancing the efficiency of investment fund management by expanding the categories authorized to distribute fund units to include investment fund distribution platforms and electronic money institutions licensed by the Saudi Central Bank, through their websites or mobile applications. The amendments also developed provisions related to the termination of investment funds and the dismissal of fund managers, in addition to regulating the voluntary withdrawal of managers of public and private investment funds. Among these provisions is the requirement to obtain the CMA's approval and the obligation of the current fund manager to transfer fund management responsibilities to the successor within 60 days of receiving approval. These measures aim to protect the rights of investors in both public and private funds, ensure a smooth transition of fund management responsibilities, safeguard the interests of unit holders, and enhance investor confidence in the capital market. As part of efforts to expand investment opportunities for Real Estate Investment Traded Funds (REITs) listed on the Parallel Market (Nomu) and to support the diversification of their assets and increase their flexibility to enhance potential returns for investors, the approved amendments allow such funds, at the time of their establishment, to invest in real estate development projects without being bound by the investment ratios and asset restrictions specified in the Real Estate Investment Funds Regulations. Among the amendments approved by the CMA Board to allow public funds to subscribe to debt instruments offered privately if issued by issuers within the Kingdom. This aims to support the growth of the asset management industry, as it will enable public fund managers to subscribe to offerings from a broader range of debt instrument issuers, following the removal of previously imposed restrictions under the Investment Funds Regulations. The amendments also require money market fund managers and capital protection funds not to invest more than 10% of the fund's net asset value in debt instruments issued by a single issuer, and that the total investments of the fund in a single entity do not exceed 25% of the fund's net asset value. These measures aim to limit risk and enhance portfolio diversification. The amendments also require managers of public funds that invest in debt instruments to disclose the credit ratings of the fund's top ten debt holdings in the fund's quarterly report, in order to enhance disclosure and transparency for investors in those funds. Regarding the requirements for offering private and foreign investment funds to retail investors, the amendments include a provision aimed at enhancing investor protection. This provision stipulates that cash subscriptions from retail investors in a private fund must not exceed 50% of the total cash subscriptions in the fund at the time of offering its units. In the case of closed-ended private funds, the transfer of fund units must not, under any circumstances, result in retail investors holding more than 50% of the total value of the fund's units through cash contributions. An additional provision was introduced stating that cash subscriptions from retail investors in the Kingdom must not exceed 50% of the total cash subscriptions in the fund when offering securities issued by a foreign fund. In the case of closed-ended foreign funds, the transfer of ownership of the securities issued by the fund must not, under any circumstances, result in retail investors in the Kingdom holding more than 50% of the total value of the fund's securities through cash contributions. The amendments also included allowing capital market institutions licensed to conduct management investment activities to distribute foreign funds and offer their securities in the Kingdom, subject to specific requirements. This will enable clients in the Kingdom to invest in foreign funds. The adoption of these amendments coincides with the Capital Market Authority's approval in the past year (2024) of the launch of 44 new investment funds across various categories, including 15 equity funds, 5 money market funds, 7 endowment (Waqf) funds, and 4 exchange-traded funds (ETFs), in addition to real estate funds and other specialized funds. Investment funds accounted for the largest share of assets under management, reaching approximately SAR 700 billion by the end of 2024, reflecting a growth rate of 25.2% compared to 2023. The CMA Board's decision to adopt these amendments came following a thorough review of the regulatory provisions subject to amendment, carried out through three separate initiatives. Each initiative addressed a specific set of amendments and was published consecutively for public consultation, beginning in June 2024, followed by October 2024, and then a third round in February 2025, before the full adoption of the amendments across all three initiatives. The amended Investment Funds Regulations, the Real Estate Investment Funds Regulations, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority can be accessed through the following links: The Investment Funds Regulations The Real Estate Investment Funds Regulations The Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority Capital Market Authority Communication & Investor Protection Division Media@ About: The Capital Market Authority (CMA) in Saudi Arabia unofficially started in the early fifties, and continued to operate successfully, until the government set its basic regulations in the eighties. The current Capital Market Law is promulgated and pursuant to Royal Decree No. (M/30) dated 2/6/1424H, which formally brought it into existence. The CMA is a government organization applying full financial, legal, and administrative independence, and has direct links with the Prime Minister. For more information about CMA, please visit the official website:
News.com.au
04-07-2025
- Business
- News.com.au
Criterion: Buy, hold or sell CBA? Investors face their NFY resolution
The CBA clearly is overvalued on conventional metrics, but selling is not as simple as that 'Expensive' stocks can remain so for months – or even years The CBA's worthy peers could be cheaper alternatives Happy New Financial Year (NFY) – a time of quiet reflection on the next fiscal stanza between scrambling for receipts to justify Netflix as a tax deduction. As part of their soul searching, investors may resolve to take profits on shares that have done well. Like the New Year's resolution to drink only on weekends rather than days ending with a 'y', NFY intentions dissipate just as quickly. But there's one decision that won't go away – and its got nothing to do with joining a gym. Should they sell their shares in the Commonwealth Bank (ASX:CBA) after last financial year's shock 48% share romp? With the stock down about 5% over the last week, some investors already have lightened up on the bank, rather than with the barbells. Trapped in a 'virtuous cycle' A chorus of expert voices has decried the CBA is chronically overvalued: mainly the fund managers who sold too soon and trashed their 2024-25 performance. In summary, the world's most expensive bank is such because overseas institutions like Australia. The CBA – also the biggest ASX stock- is the obvious proxy for our great nation. As more instos pile into the CBA, there's more buying because of the need to maintain index weighting. The CBA now accounts for 10% of the ASX200 index. This is all very well until a typical bank-like event – such a housing downturn – disrupts this self-reinforcing loop. In the words of Atlas Funds Management's Hugh Dive: 'it's a virtuous cycle until it isn't'. One pillar, three 'stumps' CBA's $300 billion valuation makes its Four Pillars peers look more like three 'stumps'. On Morgan Stanley's numbers, the CBA trades on an estimated current-year earnings multiple of 29 times, compared with 20.4 times for its Westpac (ASX:WBC), National Australia Bank (ASX:NAB) and Australia and New Zealand Banking Group (ASX:ANZ). This compares with a sector average multiple of 12.5 times over the last decade. Of course, most retail investors hold the banks for their franked dividends. On this note, the banks trade on an average forward yield of 4.8%, or 5.8% grossed up (accounting for the franking). The CBA's yield has declined to a mediocre 2.7% (3.9% grossed up). Put in context, a risk-free 12-month CBA term deposit pays 4%. The case for buying To be fair, the CBA has kept its nose out of trouble – and inarguably it's one of the world's best managed banks. Our 'stronger for longer' housing boom sure does help. 'Expensive' shares can remain so for years. This is evidenced by this year's record-breaking run of radiology imaging play ProMedicus (ASX:PME). Or, globally, AI hero Nvidia. So is the next stop for CBA is $200 per share. Or why not $300? The CBA's valuation could be supported if the Goldilocks economy thesis pans out, with tempering inflation enabling more rate cuts (as is expected). Meanwhile, the other three 'Four Pillars' have taken in turns to court disaster and controversy or lose share in the key home mortgage market. Banking on better returns elsewhere That said, the 'three stumps' are excellent banks by global standards. They also have a solid track record of recovering from despite their whoopsies. For those seeking consistent income, they work on a September balance date so pay their divs at a different time to the June-balancing CBA. Still unconvinced? The non-Big Four banks could be a credible alternative. That said, they may lack the relative prudential strength and have a higher cost of capital. Investors in the out-of-sorts Bank of Queensland (ASX:BOQ) enjoyed a 40% bounce share bounce last financial year, secondly only to the CBA's 49% surge. MyState (ASX:MYS) is an exposure to the gentrifying Tasmania market, as well as the Rockhampton and Bundaberg regions. A pure-play business lender Judo Capital Holdings (ASX:JDO) enjoys higher interest margins than on a mortgage, but its risk managers need to be on top of their game. So far, they have been. PNG bank Kina Securities (ASX:KSL) trades on a PE of eight times and an 8% yield. Perversely for the impoverished island nation, Kina has capital adequacy that would put the Big Four to shame.
Yahoo
03-07-2025
- Business
- Yahoo
AustralianSuper Boosts Private Equity With Four New Deals Coming
(Bloomberg) -- AustralianSuper is increasing its allocation to unlisted assets as the country's biggest pension fund works to finalize four private equity deals by the end of the year, according to the firm's investment chief. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds What Gothenburg Got Out of Congestion Pricing Massachusetts to Follow NYC in Making Landlords Pay Broker Fees California Exempts Building Projects From Environmental Law 'We are looking to put on four new private equity managers over this calendar year period and it looks like that is well in train,' Mark Delaney said in an interview on Thursday. 'The team know these managers from working previously with them and they have really good long-term track records in straight-down-the-line, conventional, private equity.' Delaney didn't specify details of the arrangements or names of the fund managers. The deals follow a build-out of AustralianSuper's New York office that now has around 60 people who are partly tasked with developing relationships with private markets fund managers. Delaney held meetings with private equity firms on two trips to New York this year, he said. 'Capital raising is very low and generally investing in vintages when raising is low is the best strategy for private equity, so we think it's a more attractive asset class,' Delaney said. AustralianSuper said in May the private equity allocation of its balanced investment option could grow to 8% from 5%. The move comes after a challenging period for the pension's listed equity portfolio as returns were skewed to a handful of companies including the Magnificent Seven group of mega-cap tech firms. The dynamic 'has not suited our style of portfolio,' but performance may improve over time given the fund's 'long-term diversification,' across asset classes, he said. Australia's giant pensions have weathered heightened volatility through the year as President Donald Trump's trade agenda and pockets of global conflict have rocked global markets. US stocks initially tumbled after Trump's 'Liberation Day' tariff announcement but have since reversed declines and on Wednesday set a fresh all-time high. Delaney, who oversees the fund's more than A$365 billion ($240 billion) in assets, said while US tariffs would likely slow growth in the economy and corporate profits, that does not warrant a reduced exposure to equities. 'There is a strong consensus that tariffs will cause a meaningful slowdown in the US economy but no recession,' Delaney said. 'We don't think it's enough for us to go underweight stocks.' Listen and follow The Bloomberg Australia Podcast on Apple, Spotify, on YouTube, or wherever you get your podcasts. Terminal clients: Run NSUB AUPOD on your desktop to subscribe. --With assistance from Amy Bainbridge. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
AustralianSuper Boosts Private Equity With Four New Deals Coming
(Bloomberg) -- AustralianSuper is increasing its allocation to unlisted assets as the country's biggest pension fund works to finalize four private equity deals by the end of the year, according to the firm's investment chief. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds What Gothenburg Got Out of Congestion Pricing Massachusetts to Follow NYC in Making Landlords Pay Broker Fees California Exempts Building Projects From Environmental Law 'We are looking to put on four new private equity managers over this calendar year period and it looks like that is well in train,' Mark Delaney said in an interview on Thursday. 'The team know these managers from working previously with them and they have really good long-term track records in straight-down-the-line, conventional, private equity.' Delaney didn't specify details of the arrangements or names of the fund managers. The deals follow a build-out of AustralianSuper's New York office that now has around 60 people who are partly tasked with developing relationships with private markets fund managers. Delaney held meetings with private equity firms on two trips to New York this year, he said. 'Capital raising is very low and generally investing in vintages when raising is low is the best strategy for private equity, so we think it's a more attractive asset class,' Delaney said. AustralianSuper said in May the private equity allocation of its balanced investment option could grow to 8% from 5%. The move comes after a challenging period for the pension's listed equity portfolio as returns were skewed to a handful of companies including the Magnificent Seven group of mega-cap tech firms. The dynamic 'has not suited our style of portfolio,' but performance may improve over time given the fund's 'long-term diversification,' across asset classes, he said. Australia's giant pensions have weathered heightened volatility through the year as President Donald Trump's trade agenda and pockets of global conflict have rocked global markets. US stocks initially tumbled after Trump's 'Liberation Day' tariff announcement but have since reversed declines and on Wednesday set a fresh all-time high. Delaney, who oversees the fund's more than A$365 billion ($240 billion) in assets, said while US tariffs would likely slow growth in the economy and corporate profits, that does not warrant a reduced exposure to equities. 'There is a strong consensus that tariffs will cause a meaningful slowdown in the US economy but no recession,' Delaney said. 'We don't think it's enough for us to go underweight stocks.' Listen and follow The Bloomberg Australia Podcast on Apple, Spotify, on YouTube, or wherever you get your podcasts. Terminal clients: Run NSUB AUPOD on your desktop to subscribe. --With assistance from Amy Bainbridge. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P.
Bloomberg
16-06-2025
- Business
- Bloomberg
Active ETFs Now Outnumber Passive Funds in Industry Watershed Moment
The ETF market has hit a symbolic turning point: active funds now outnumber passive ones for the first time, marking a sharp break from the industry's index-tracking origins — even if actively managed assets still account for just a tenth of assets. Roughly 51% of the nearly 4,300 US-listed exchange-traded funds are ones overseen by fund managers who have more discretion to pick stocks or other securities, eclipsing index-following products for the first time, Bloomberg Intelligence data show. The number of active ETFs has more than doubled in the past five years, from just 23% in 2020.
