AustralianSuper Boosts Private Equity With Four New Deals Coming
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
Hapag-Lloyd (ETR:HLAG) jumps 3.9% this week, though earnings growth is still tracking behind five-year shareholder returns
Explore Hapag-Lloyd's Fair Values from the Community and select yours While Hapag-Lloyd Aktiengesellschaft (ETR:HLAG) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 20% in the last quarter. But that doesn't change the fact that the returns over the last five years have been very strong. Indeed, the share price is up an impressive 140% in that time. We think it's more important to dwell on the long term returns than the short term returns. Ultimately business performance will determine whether the stock price continues the positive long term trend. Unfortunately not all shareholders will have held it for five years, so spare a thought for those caught in the 55% decline over the last three years: that's a long time to wait for profits. After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Hapag-Lloyd achieved compound earnings per share (EPS) growth of 54% per year. This EPS growth is higher than the 19% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. The reasonably low P/E ratio of 9.23 also suggests market apprehension. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). We know that Hapag-Lloyd has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Hapag-Lloyd, it has a TSR of 292% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective While the broader market gained around 42% in the last year, Hapag-Lloyd shareholders lost 7.2% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 31%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Hapag-Lloyd you should be aware of, and 1 of them shouldn't be ignored. Of course Hapag-Lloyd may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Bloomberg
6 minutes ago
- Bloomberg
Tencent's AI Restraint Shows Risk of Alibaba, JD Food War
China's biggest tech companies are bouncing back after years on the ropes with outsized ambitions to dominate in everything from robots and smart glasses to cheap meals. But investors want them to focus their spending where it counts — AI. From Meta Platforms Inc. to Google, one topic has dominated the conversation this tech earnings season: how Silicon Valley's leaders will invest to seize the momentum in a game-changing technology. In China, the industry is just as enthralled by a three-way battle to deliver the cheapest meals and knick-knacks, fastest. That conflict between Alibaba Group Holding Ltd., Inc. and Meituan — both on social media and in the physical consumer arena — isn't just compressing margins and irking investors — it's risking Beijing's scrutiny.
Yahoo
34 minutes ago
- Yahoo
We Think Chalice Mining (ASX:CHN) Can Easily Afford To Drive Business Growth
Explore Chalice Mining's Fair Values from the Community and select yours Just because a business does not make any money, does not mean that the stock will go down. For example, although software-as-a-service business lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. But while history lauds those rare successes, those that fail are often forgotten; who remembers Given this risk, we thought we'd take a look at whether Chalice Mining (ASX:CHN) shareholders should be worried about its cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. Let's start with an examination of the business' cash, relative to its cash burn. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How Long Is Chalice Mining's Cash Runway? A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. In December 2024, Chalice Mining had AU$90m in cash, and was debt-free. Importantly, its cash burn was AU$24m over the trailing twelve months. That means it had a cash runway of about 3.7 years as of December 2024. Importantly, analysts think that Chalice Mining will reach cashflow breakeven in 5 years. Essentially, that means the company will either reduce its cash burn, or else require more cash. You can see how its cash balance has changed over time in the image below. Check out our latest analysis for Chalice Mining How Is Chalice Mining's Cash Burn Changing Over Time? Whilst it's great to see that Chalice Mining has already begun generating revenue from operations, last year it only produced AU$446k, so we don't think it is generating significant revenue, at this point. As a result, we think it's a bit early to focus on the revenue growth, so we'll limit ourselves to looking at how the cash burn is changing over time. Notably, its cash burn was actually down by 60% in the last year, which is a real positive in terms of resilience, but uninspiring when it comes to investment for growth. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. Can Chalice Mining Raise More Cash Easily? While we're comforted by the recent reduction evident from our analysis of Chalice Mining's cash burn, it is still worth considering how easily the company could raise more funds, if it wanted to accelerate spending to drive growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Commonly, a business will sell new shares in itself to raise cash and drive growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Since it has a market capitalisation of AU$656m, Chalice Mining's AU$24m in cash burn equates to about 3.7% of its market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. How Risky Is Chalice Mining's Cash Burn Situation? As you can probably tell by now, we're not too worried about Chalice Mining's cash burn. For example, we think its cash runway suggests that the company is on a good path. And even its cash burn reduction was very encouraging. Shareholders can take heart from the fact that analysts are forecasting it will reach breakeven. Taking all the factors in this report into account, we're not at all worried about its cash burn, as the business appears well capitalized to spend as needs be. On another note, Chalice Mining has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
