Yarra Capital Management

With APRA’s decision to phase out AT1 hybrids, a substantial pool of capital (estimated to be around $41 billion) could soon be on the move. Simultaneously, corporate hybrids are in the ascendent, with non-financial corporate hybrids potentially becoming instrumental in helping to power Australia’s energy transition. In this latest insight, Roy Keenan (Co-Head of Fixed Income) looks at the implications of phasing out AT1 capital and whether corporate hybrids can provide a viable alternative for retail investors in search of yield. Roy details one recently issued A-REIT hybrid offering investors strong risk-adjusted returns. 

ICYMI: Michael Steele (Co-Portfolio Manager of Small Cap Equities) recently joined Andrew Geoghegan on ausbiz to break down the YTD performance of Australian small caps, highlighting one essential resource seeing strong demand and attractive valuations, and touching on a healthcare company he believes is well positioned for growth through AI advancements and recent acquisitions. #smallcaps #investment #media

This week, members from our Sydney team joined 12,000 participants in the 5.6km run/walk at the J.P. Morgan Corporate Challenge in Centennial Park. The event not only fosters fitness, friendly competition, and fun but also supports the Indigenous Marathon Foundation (IMF), which celebrates the cultures, strength, and achievements of Aboriginal and Torres Strait Islander peoples while empowering inspirational leaders. Our team brought incredible energy and spirit, spending quality time together outside of work while proudly supporting this important cause.   Well done to all involved! Angus Jenkins, Annie Lee, Charlotte Halbert, Damien Casey, Declan Lenaghan, Jessica Ren, Jason Zhou, Michael Ward, Steven Tin #JPMCC2024 #IMF #funrun #teamspirit

Last week, our Co-Head of Fixed Income, Roy Keenan, took part in the Global Investment Institute Family Office Forum in Melbourne. Roy provided a detailed outlook on the macroeconomic factors driving Australian credit and shared his perspectives on what lies ahead for investors in the Australian hybrid market, particularly with Australian Prudential Regulation Authority proposed changes to the capital framework for Australian banks.   The Forum brought together families and investment advisers managing capital for Australian family offices, offering global insights into portfolio optimisation, decision-making frameworks, and accessing unique investment opportunities.   Thank you to the broader #GII team for having us.

ICYMI: Joel Fleming (Portfolio Manager, Microcap) joined ausbiz's Andrew Geoghegan last week for an in-depth discussion on the current economic landscape. He identifies two promising microcap opportunities—one focused on innovative accommodation solutions for the mining sector and the other on essential water services for deepening mines. Joel also shares why he finds the sector attractive, emphasising its perceived value and the return of liquidity. #microcaps #investmentopportunities #media

We were delighted to have Dion Hershan (Head of Australian Equities) and our partner Mark Finikin at Goldman Sachs Asset Management (GSAM) host delegates at ISS/Rainmaker Information's "Best of Breed" Global Research & Investment Program at GSAM’s New York office.   A big thank you to Dennis Walsh, Co-Portfolio Manager of the Yarra Global Small Companies strategy and Co-Head of the Quantitative Investment Strategies (QIS) group, as well as Nick Barker, Global Co-Head of Client Portfolio Management, who guided delegates through the investment philosophy and process. Special thanks also to Economist Joseph Briggs for his valuable insights on #AI.

The past decade has seen many market-moving events, but Nikko Asset Management Group's Global Equity team’s approach to long-term outperformance remains clear. In his latest 'Future Quality' insight, Greig Bryson (Portfolio Manager) explains how their strategy has consistently delivered alpha, highlights some of the Fund’s key growth drivers (including #AI), and reveals one standout Japanese stock that exemplifies Future Quality, reinforcing the team's confidence in navigating an evolving market.

In the latest episode of the Praemium Investment Leaders podcast, Dion Hershan (Head of Australian Equities) sits down with Damian Cilmi to discuss opportunities in overlooked equities within the Australian market. Dion shares insights into the #ASX200's not-so magnificent seven and details a class of medications that could be 'thinning' the healthcare market.   Teaser below, and full episode available here: https://lnkd.in/g8CFvyyb

Banks have rallied over the past year but fell about 10% last month. In an interview with Livewire Markets' Christopher Conway, Dion Hershan (Head of Australian Equities) explains some of the market distortions impacting both banks and miners, and explains why investors should look beyond the 'Mundane Seven.' Dion also reveals why a number of companies outside the ASX 20 are set for strong revenue growth in FY25, while none from inside the ASX 20 are expected to match it.

Our running team in Melbourne put the pedal to the metal at this year's Nike Melbourne Marathon. The team of eight showcased their prowess over the weekend in races from 10km to 42km and raising over $15,000 in support of Beyond Blue, a wonderful organisation helping everyone in Australia achieve their best possible mental health.   We are very proud of each member's commitment and determination to cross the finish line. Well done team!   #melbournemarathon #teameffort #fundraising