Nicholas Moore: Leadership, investing and philanthropy

… the current environment, the changing role of technology in our lives and his insights into the not-for-profit sector and the importance of philanthropy.

Nicholas Moore had a distinguished 33-year career at Macquarie Group, culminating in his decade long tenure as Chief Executive Officer from 2008 – 2018. It is worth noting that Moore guided Macquarie through the depths of the Global Financial Crisis and set the course for the subsequent recovery.

To launch the Future Generation Virtual Forum, Belinda Hutchinson AC will host a live interview with Nicholas Moore starting at 4:00 pm today. The discussion will cover Nicholas’ views on what is required to underpin Australia’s economic recovery, the outlook for markets, how he is investing in the current environment, the changing role of technology in our lives and his insights into the not-for-profit sector and the importance of philanthropy.

Click on the player below to access the live stream, a replay will be available immediately after the event via the same link.


Future Generation: Providing Social and Investment Returns

Future Generation Australia (FGX) provides investors with diversified exposure to Australian equities while supporting children at risk.

Future Generation Global (FGG) provides investors with diversified international equities exposure while changing the lives of our youth affected by mental illness.

Visit the Future Generation website to learn more about Future Generation Australia, Future Generation Global Investment Company and the charities that they support.

Investors at CNBC conference anticipate more market volatility but see opportunities

Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund, said he still likes the $45 billion commitment to SoftBank Group’s Vision Fund, …

NEW YORK (Reuters) – Investors including Steven Schwarzman, Mary Callahan Erdoes and Barry Sternlicht are bracing for more market volatility as the U.S presidential vote nears but see opportunities to make money in commercial real estate and financial companies.

The S&P 500 index has slipped almost 5% this month after recovering for months amid the economic crisis sparked by the coronavirus pandemic, and some speakers at the CNBC Institutional Investor Delivering Alpha Conference on Wednesday forecast bigger market swings ahead.

“I see a pretty significant correction among high-flying (technology) stocks if the Democrats win,” said real estate investor Barry Sternlicht who runs Starwood Capital Group.

“Short term it will be bad for equities,” he forecast, citing presidential hopeful Joe Biden’s plan to raise the corporate tax rate to 28% from 21% as a negative factor.

For Mary Callahan Erdoes, chief executive of JP Morgan Chase’s asset and wealth management business, risks stretch beyond the U.S. election to include the COVID-19 crisis and fallout of Britain leaving the European Union. “Is my portfolio right-sized for another bout of volatility?,” she urged investors to ask themselves.

On the other hand, investors also expressed optimism that a virus vaccine would arrive and that the economy is recovering.

Blackstone Group CEO Stephen Schwarzman said commercial real estate, especially warehouses and laboratory space, has been a focus while his firm largely exited hotel and retail real estate investments. “We are the largest owner or second largest owner in the world in health care office buildings, research labs. That business is doing great. Everyone’s paying their rent,” Schwarzman said.

John Vaske, head of the Americas at Singaporean investment giant Temasek, said rising affluence and longer lifespans had already made investments in fintech and payments groups more attractive. Those trends are being accelerated by the pandemic.

Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund, said he still likes the $45 billion commitment to SoftBank Group’s Vision Fund, the world’s biggest technology focused venture capital fund. “It’s not the greatest performance, but still it’s not down, which is something really good especially with this kind of investment,” he said.

Activist investor Jeff Ubben, who recently left ValueAct Capital to found impact investing firm Inclusive Capital, backed Nikola Motor Company, where he sits on the board, after the electric truck company came under fire from a short seller and its founder exited. “It is doing the hardest thing by trying to clean up dirty industries,” Ubben said.

Reporting by Svea Herbst-Bayliss; Editing by Cynthia Osterman

Angel funds need consent from all investors before making an investment

It is backed by VC firms such as Accel Partners and Chiratae Ventures, as well as angel and high net worth individuals including Nandan Nilekani, …
Illustration: Rahul Awasthi
Illustration: Rahul Awasthi

The Securities and Exchange Board of India (Sebi) has said the fund manager of an angel fund must take the consent from every investor in the fund syndicate prior to making an investment.

The clarification from the markets regulator, in effect, bans ‘blind pooling of capital’ — a practice undertaken by angel funds and their managers in a bid to close a large number of investment deals.

In its letter to angel investment platform LetsVenture, dated September 17 and which ET has reviewed, the regulator has said under regulation 19 3 (G), of the Sebi Alternative Investment Funds (AIF) Regulations, 2012, “The manager of the angel fund shall obtain an undertaking from every angel investor proposing to make investment in a venture capital undertaking confirming his approval for such an investment, prior to making such an investment.”

Blind pooling of capital is defined as taking investment decisions by the lead angel or a syndicate lead on behalf of all the investors in an angel fund.

Founded in 2013, LetsVenture is a growth platform designed specifically for ultra-wealthy individuals and family offices to access investments across growth-stage private companies, unicorns and global funds.

Startups on the platform have raised Rs 1,174 crore across 290-plus rounds. The marketplace has 29 syndicates, more than 6,500 angel investors from 52 countries and 100 micro VC funds. Its Sebi-registered Angel Fund AIF has assets under management of more than Rs 238 crore, and close to 900 accredited investors. It is backed by VC firms such as Accel Partners and Chiratae Ventures, as well as angel and high net worth individuals including Nandan Nilekani, Ratan Tata, Rishad Premji and TV Mohandas Pai.

Angel funds usually work on the principle that there is a contribution agreement between investors and the person setting up the angel investment platform, who will also share various opportunities to invest, while ensuring there is consent from the investors for every identified opportunity.

“An angel fund, compared to a venture capital fund, has much smaller capital requirements, and will see smaller or individual investors taking part, instead of institutional capital which typically backs VC funds, and that is why consent is required,” 100X.VC founder Sanjay Mehta said.

Sebi’s letter to LetsVenture further clarified that there were no provisions in the AIF Regulations that provided for a waiver of investors’ right. LetsVenture had reached out to Sebi in November last year, seeking the clarification.

“The latest clarifications are to make sure that every investor knows what the terms are, and says yes to investments being driven through the fund. Sebi wants to ensure that even if there is a contractual agreement between the lead angel and the sole investor, the latter still has given the necessary consent to every deal and knows what he or she is signing up for. This is the crux of investor protection,” Sunitha KR, president – early-stage investment at LetsVenture, told ET.

The markets regulator has also clarified that a limited liability partnership, an entity created to make investments, should meet the minimum net worth criteria of Rs 10 crore. An LLP not meeting that criteria will, therefore, not be an eligible angel investor, even if its partners qualify as angel investors in their individual capacity, for which the minimum net worth has been set at Rs 2 crore.

Why it’s time for US investors to consider overseas stocks

Finally, international equity markets are more diverse compared with 20 … Jasmine: Are you saying the universe of international stock investing is …

Jasmine: Last question. At BlackRock, we’re already seeing increased interest from clients in diversifying and expect this trend to persist through the remainder of 2020 and beyond. What else should investors know about diversification and international investing?

Jenny: Several forces could drive the correlation between U.S. equities and international equities lower in the next few years.

The renewed geopolitical tensions between the U.S. and China is exacerbating deglobalization trends and leading to more bifurcated supply chains. The increased weight of domestic sectors such as consumer, health care and technology versus the role of more globally correlated sectors such as energy and materials could also contribute to more divergent outcomes across countries.

Even without a drop in correlations, diversification benefits can come from other aspects such as foreign currency holdings and from the diverse sector, factor and style exposures which international investing offers.

Jasmine: Thanks so much for speaking with me, Jenny.

Related Funds

iShares Core MSCIEAFEETFIEFA

iShares MSCI Intl Quality Factor ETFIQLT

iShares Core MSCI Emerging Markets ETFIEMG

iShares ESG Aware MSCIEAFEETFESGD

1. Source: BlackRock, Portfolio Solutions (as of June 2020.)

2. Source: iea.org (As of August 2020.)

3. Source: BlackRock, US Department of commerce, Euromonitor, OC&C Strategy Consultants (as of December 2019.)

4. Source: BlackRock, iResearch (as of December 2019.)

5. Source: MSCI (as of July 2020.)

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International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets and in concentrations of single countries. Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market.

This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.

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auxmoney Raises €150M Equity Funding

Existing investors such as Index Ventures, Union Square Ventures and Foundation Capital will remain fully on board. The company intends to use the …
auxmoney

auxmoney, a Düsseldorf, Germany-based credit marketplace, raised an equity funding of €150m.

Centerbridge made the majority equity investment and acquired shares of existing shareholders*. Existing investors such as Index Ventures, Union Square Ventures and Foundation Capital will remain fully on board.

The company intends to use the funds to further develop its tech platform and expand its market opportunities.

Led by Raffael Johnen, CEO and co-founder, auxmoney is a credit marketplace for private and institutional investors to invest in pre-proven borrowers and benefit from returns.

The company said that the volume of loans paid out has more than twenty-fold in the last five financial years based on technological innovations along advanced digital risk assessment methods.

FinSMEs

06/09/2020

*Centerbridge’s investment is still subject to approval by antitrust authorities.