Latest news with #PME
Yahoo
27-05-2025
- Business
- Yahoo
US Fund Managers Put on Notice by $65 Billion Dutch Investor
(Bloomberg) -- Dutch pension fund PME is issuing a blanket warning to US money managers, amid concerns America's investment industry is caving in to pressure from the Trump administration to abandon basic principles of stewardship. UAE's AI University Aims to Become Stanford of the Gulf NY Wins Order Against US Funding Freeze in Congestion Fight They 'aren't condemning what Trump is doing and how he is operating and how he is handling issues like climate change and demolishing the judiciary,' Daan Spaargaren, senior strategist for responsible investing, said in an interview. 'We are worried about that.' PME, with assets under management of about €57 billion ($65 billion), is the latest in a string of pension funds in Europe to express such concerns. Earlier this year, State Street lost mandates in Scandinavia and the UK after it withdrew from a major climate alliance for the industry. PME has already made clear it's reviewing a €5 billion mandate with BlackRock Inc., after the world's largest asset manager quit a key net zero coalition. It expects to make a decision in the coming weeks. 'We are now looking at the equity portfolio, so currently it's only BlackRock,' Spaargaren said. 'When we assess other asset categories as well, so also the bond portfolios, then we will also evaluate the managers that are managing those funds.' BlackRock has said that it's a 'global leader' in sustainable and transition investing, and that it offers climate-focused clients in Europe a choice of products that deliver performance in line with their preferences. Spaargaren says PME has come to the conclusion that 'existing frameworks on benchmarking different asset managers — the old frameworks — are not working anymore.' The administration of President Donald Trump has attacked the judiciary and is in the process of derailing America's energy transition. It has also sought to wipe out diversity, equity and inclusion policies, dubbing these 'illegal.' It's a political development that requires the investment industry to take a stand, Spaargaren said. If asset managers 'align their interests and their policies with the current administration in the US, then we are legitimizing also these steps and these practices by offering them our funds,' he said. PME is now 'evaluating' next steps, Spaargaren said. Whether it stays invested in companies — or holds on to existing external mandates — will depend on the outcome of a revised screening process the pension fund has introduced, he said. The new filter will assess holdings based on parameters such as how well investments support good governance, freedom of association, as well as environmental considerations such as water scarcity. It will also automatically exclude passively managed equity investments in emerging markets because of the perceived environmental, social and governance risks. Spaargaren says investors need to adapt to what's become a fundamental split between values in Europe and those being promoted by the Trump administration. 'There is now a divide between European and American asset managers,' which is 'quite' clear when it comes to engagement, active ownership, membership of climate initiatives and voting, he said. Key is watching how firms navigate the Trump administration, he said. Others in Europe have made similar points. Last week, a senior portfolio manager at Allianz Global Investors warned that Republican policies under Trump mean the US may no longer offer a 'reliable investment runway.' PME currently uses a number of the biggest US asset managers to help oversee its portfolio. The fund reviews those mandates on an annual basis. A list on its website is set to be updated around June 30. 'We need asset owners that take more ownership on how their funds are being invested,' Spaargaren said. Europe's pension funds and insurers face increasing demands from clients and regulators to address ESG factors, particularly climate. In addition to being the fastest warming region in the world, Europe is home to the toughest requirements around disclosing environmental and social harms, and addressing work-place inequities. PME began work on the ESG screen back in 2022, as it became increasingly clear that things like simple bans on oil investments weren't enough to create a 'future-proof' portfolio of companies, Spaargaren said. Back then, 'we thought the wrong way,' he said. 'We thought that excluding would leave us with a sustainable portfolio, but we were just focusing on excluding harmful activities instead of focusing which companies, which sectors, were necessary for a more sustainable future.' The Dutch pensions investor is rolling out its new ESG screen this year, starting with equities. It's already cut the universe in which it will invest by roughly two-thirds, to around 1,000 stocks. US companies have the opportunity to persuade institutional investors like PME that they're not caving in to Trump's agenda, which includes continuing to provide clear ESG disclosures, Spaargaren said. 'The problem is if companies stop reporting on diversity, equity and inclusion or on climate,' he said. Though PME has regularly reviewed its external managers, Spaargaren says this time is 'different.' It's 'a new situation when it comes to the attitude of asset managers in the US,' he said. 'They sometimes align with, or go very easy on what's going on in the US.' And the worry is that 'it's more fundamental than just another administration.' (Adds PME comment on BlackRock in fourth paragraph, comment on asset managers in 16th.) Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center Millions of Americans Are Obsessed With This Japanese Barbecue Sauce How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P.
Yahoo
27-05-2025
- Business
- Yahoo
US Fund Managers Put on Notice by $65 Billion Dutch Investor
(Bloomberg) -- Dutch pension fund PME is issuing a blanket warning to US money managers, amid concerns America's investment industry is caving in to pressure from the Trump administration to abandon basic principles of stewardship. UAE's AI University Aims to Become Stanford of the Gulf Pacific Coast Highway to Reopen Near Malibu After January Fires They 'aren't condemning what Trump is doing and how he is operating and how he is handling issues like climate change and demolishing the judiciary,' Daan Spaargaren, senior strategist for responsible investing, said in an interview. 'We are worried about that.' PME, with assets under management of about €57 billion ($65 billion), is the latest in a string of pension funds in Europe to express such concerns. Earlier this year, State Street lost mandates in Scandinavia and the UK after it withdrew from a major climate alliance for the industry. PME has already made clear it's reviewing a €5 billion mandate with BlackRock Inc., after the world's largest asset manager quit a key net zero coalition. It expects to make a decision in the coming weeks. 'We are now looking at the equity portfolio, so currently it's only BlackRock,' Spaargaren said. 'When we assess other asset categories as well, so also the bond portfolios, then we will also evaluate the managers that are managing those funds.' BlackRock has said that it's a 'global leader' in sustainable and transition investing, and that it offers climate-focused clients in Europe a choice of products that deliver performance in line with their preferences. Spaargaren says PME has come to the conclusion that 'existing frameworks on benchmarking different asset managers — the old frameworks — are not working anymore.' The administration of President Donald Trump has attacked the judiciary and is in the process of derailing America's energy transition. It has also sought to wipe out diversity, equity and inclusion policies, dubbing these 'illegal.' It's a political development that requires the investment industry to take a stand, Spaargaren said. If asset managers 'align their interests and their policies with the current administration in the US, then we are legitimizing also these steps and these practices by offering them our funds,' he said. PME is now 'evaluating' next steps, Spaargaren said. Whether it stays invested in companies — or holds on to existing external mandates — will depend on the outcome of a revised screening process the pension fund has introduced, he said. The new filter will assess holdings based on parameters such as how well investments support good governance, freedom of association, as well as environmental considerations such as water scarcity. It will also automatically exclude passively managed equity investments in emerging markets because of the perceived environmental, social and governance risks. Spaargaren says investors need to adapt to what's become a fundamental split between values in Europe and those being promoted by the Trump administration. 'There is now a divide between European and American asset managers,' which is 'quite' clear when it comes to engagement, active ownership, membership of climate initiatives and voting, he said. Key is watching how firms navigate the Trump administration, he said. Others in Europe have made similar points. Last week, a senior portfolio manager at Allianz Global Investors warned that Republican policies under Trump mean the US may no longer offer a 'reliable investment runway.' PME currently uses a number of the biggest US asset managers to help oversee its portfolio. The fund reviews those mandates on an annual basis. A list on its website is set to be updated around June 30. 'We need asset owners that take more ownership on how their funds are being invested,' Spaargaren said. Europe's pension funds and insurers face increasing demands from clients and regulators to address ESG factors, particularly climate. In addition to being the fastest warming region in the world, Europe is home to the toughest requirements around disclosing environmental and social harms, and addressing work-place inequities. PME began work on the ESG screen back in 2022, as it became increasingly clear that things like simple bans on oil investments weren't enough to create a 'future-proof' portfolio of companies, Spaargaren said. Back then, 'we thought the wrong way,' he said. 'We thought that excluding would leave us with a sustainable portfolio, but we were just focusing on excluding harmful activities instead of focusing which companies, which sectors, were necessary for a more sustainable future.' The Dutch pensions investor is rolling out its new ESG screen this year, starting with equities. It's already cut the universe in which it will invest by roughly two-thirds, to around 1,000 stocks. US companies have the opportunity to persuade institutional investors like PME that they're not caving in to Trump's agenda, which includes continuing to provide clear ESG disclosures, Spaargaren said. 'The problem is if companies stop reporting on diversity, equity and inclusion or on climate,' he said. Though PME has regularly reviewed its external managers, Spaargaren says this time is 'different.' It's 'a new situation when it comes to the attitude of asset managers in the US,' he said. 'They sometimes align with, or go very easy on what's going on in the US.' And the worry is that 'it's more fundamental than just another administration.' (Adds PME comment on BlackRock in fourth paragraph, comment on asset managers in 16th.) Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol Millions of Americans Are Obsessed With This Japanese Barbecue Sauce ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
26-05-2025
- Business
- Bloomberg
US Money Managers Put on Notice by $65 Billion Dutch Investor
Dutch pension fund PME is issuing a blanket warning to US money managers, amid concerns America's investment industry is caving in to pressure from the Trump administration to abandon basic principles of stewardship. They 'aren't condemning what Trump is doing and how he is operating and how he is handling issues like climate change and demolishing the judiciary,' Daan Spaargaren, senior strategist for responsible investing, said in an interview. 'We are worried about that.'
Yahoo
20-05-2025
- Business
- Yahoo
Here's Why We Think Pro Medicus (ASX:PME) Is Well Worth Watching
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Pro Medicus (ASX:PME). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. To the delight of shareholders, Pro Medicus has achieved impressive annual EPS growth of 37%, compound, over the last three years. While that sort of growth rate isn't sustainable for long, it certainly catches the eye of prospective investors. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The good news is that Pro Medicus is growing revenues, and EBIT margins improved by 5.1 percentage points to 72%, over the last year. That's great to see, on both counts. You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers. View our latest analysis for Pro Medicus You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Pro Medicus' future profits. Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there's less of a probability in a sudden sell-off that would impact the share price. So those who are interested in Pro Medicus will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. Owning 49% of the company, insiders have plenty riding on the performance of the the share price. Shareholders and speculators should be reassured by this kind of alignment, as it suggests the business will be run for the benefit of shareholders. And their holding is extremely valuable at the current share price, totalling AU$14b. This is an incredible endorsement from them. It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Our quick analysis into CEO remuneration would seem to indicate they are. The median total compensation for CEOs of companies similar in size to Pro Medicus, with market caps over AU$12b, is around AU$6.4m. The Pro Medicus CEO received total compensation of just AU$965k in the year to June 2024. First impressions seem to indicate a compensation policy that is favourable to shareholders. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally. Pro Medicus' earnings per share growth have been climbing higher at an appreciable rate. An added bonus for those interested is that management hold a heap of stock and the CEO pay is quite reasonable, illustrating good cash management. The sharp increase in earnings could signal good business momentum. Big growth can make big winners, so the writing on the wall tells us that Pro Medicus is worth considering carefully. Of course, profit growth is one thing but it's even better if Pro Medicus is receiving high returns on equity, since that should imply it can keep growing without much need for capital. Click on this link to see how it is faring against the average in its industry. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in AU with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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.
Yahoo
21-04-2025
- Business
- Yahoo
Is Weakness In Pro Medicus Limited (ASX:PME) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?
It is hard to get excited after looking at Pro Medicus' (ASX:PME) recent performance, when its stock has declined 21% over the past three months. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. In this article, we decided to focus on Pro Medicus' ROE. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. We check all companies for important risks. See what we found for Pro Medicus in our free report. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Pro Medicus is: 44% = AU$98m ÷ AU$222m (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.44. See our latest analysis for Pro Medicus Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. Firstly, we acknowledge that Pro Medicus has a significantly high ROE. Additionally, the company's ROE is higher compared to the industry average of 11% which is quite remarkable. So, the substantial 31% net income growth seen by Pro Medicus over the past five years isn't overly surprising. Next, on comparing with the industry net income growth, we found that Pro Medicus' growth is quite high when compared to the industry average growth of 13% in the same period, which is great to see. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. Is Pro Medicus fairly valued compared to other companies? These 3 valuation measures might help you decide. The high three-year median payout ratio of 51% (implying that it keeps only 49% of profits) for Pro Medicus suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders. Besides, Pro Medicus has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 52% of its profits over the next three years. Accordingly, forecasts suggest that Pro Medicus' future ROE will be 50% which is again, similar to the current ROE. In total, we are pretty happy with Pro Medicus' performance. Especially the high ROE, Which has contributed to the impressive growth seen in earnings. Despite the company reinvesting only a small portion of its profits, it still has managed to grow its earnings so that is appreciable. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. 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
