NEWS
14 Apr 2026 - I Went to China's Robotics Hub - What I Saw Changed My View on the U.S. vs China Race
13 Apr 2026 - Performance Report: Airlie Australian Share Fund
[Current Manager Report if available]
13 Apr 2026 - Performance Report: Quay Global Real Estate Fund (Unhedged)
[Current Manager Report if available]
13 Apr 2026 - Infrastructure in focus: Turning on the capex tap
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Infrastructure in focus: Turning on the capex tap Magellan Investment Partners March 2026 (3-minute read) |
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Many investors are well-versed in the growth story for data centres, with the rapid building of these assets a focal point in markets and the media. What is perhaps not appreciated is the large-scale capital investment outlook beyond hyperscalers, AI and data centres.
This capex story is durable for regulated utilities, even in a market downturn. Regardless of the economic climate, there are no substitutes for clean water and wastewater infrastructure. For the UK listed water utilities, while share prices are sensitive to rates, this does not reflect any change in the underlying quality of these businesses. |
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Funds operated by this manager: Magellan Global Fund (Open Class Units) ASX:MGOC , Magellan Infrastructure Fund , Magellan Global Opportunities Fund No.2 , Magellan Infrastructure Fund (Unhedged) , Magellan Global Fund (Hedged) , Magellan Core Infrastructure Fund , Magellan Global Opportunities Fund Active ETF (ASX:OPPT) Important Information: This material has been delivered to you by Magellan Asset Management Limited ABN 31 120 593 946 AFS Licence No. 304 301 trading as Magellan Investment Partners ('Magellan Investment Partners') and has been prepared for general information purposes only and must not be construed as investment advice or as an investment recommendation. This material does not take into account your investment objectives, financial situation or particular needs. This material does not constitute an offer or inducement to engage in an investment activity nor does it form part of any offer documentation, offer or invitation to purchase, sell or subscribe for interests in any type of investment product or service. You should obtain and consider the relevant Product Disclosure Statement ('PDS') and Target Market Determination ('TMD') and consider obtaining professional investment advice tailored to your specific circumstances before making a decision about whether to acquire, or continue to hold, the relevant financial product. A copy of the relevant PDS and TMD relating to a Magellan Investment Partners financial product may be obtained by calling +61 2 9235 4888 or by visiting www.magellaninvestmentpartners.com Past performance is not necessarily indicative of future results and no person guarantees the future performance of any financial product or service, the amount or timing of any return from it, that asset allocations will be met, that it will be able to implement its investment strategy or that its investment objectives will be achieved. This material may contain 'forward-looking statements'. Actual events or results or the actual performance of a Magellan Investment Partners financial product or service may differ materially from those reflected or contemplated in such forward-looking statements. This material may include data, research and other information from third party sources. No guarantee is made that such information is accurate, complete or timely and no warranty is given regarding results obtained from its use. This information is subject to change at any time and no person has any responsibility to update any of the information provided in this material. Statements contained in this material that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Magellan Investment Partners or the third party responsible for making those statements (as relevant). Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. No representation or warranty is made with respect to the accuracy or completeness of any of the information contained in this material. Magellan Investment Partners will not be responsible or liable for any losses arising from your use or reliance upon any part of the information contained in this material. Any third-party trademarks contained herein are the property of their respective owners and Magellan Investment Partners claims no ownership in, nor any affiliation with, such trademarks. Any third-party trademarks contained herein are the property of their respective owners, are used for information purposes and only to identify the company names or brands of their respective owners, and no affiliation, sponsorship or endorsement should be inferred from such use. This material and the information contained within it may not be reproduced, or disclosed, in whole or in part, without the prior written consent of Magellan Investment Partners. (080825-#W17) |
10 Apr 2026 - Hedge Clippings |10 April 2026
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Hedge Clippings | 10 April 2026
News | Insights Infrastructure in focus: The HALO effect | Magellan Investment Partners March 2026 Performance News |
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10 Apr 2026 - Performance Report: Bennelong Australian Equities Fund
[Current Manager Report if available]
10 Apr 2026 - Performance Report: 4D Global Infrastructure Fund (Unhedged)
[Current Manager Report if available]
10 Apr 2026 - What Goldman Sachs teaches about risk
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What Goldman Sachs teaches about risk Marcus Today March 2026 5-minute read Lloyd Blankfein's memoir offers a rare inside look at markets, risk and decision-making from the top of Goldman Sachs during periods of extreme uncertainty. If you ever need proof a billion-dollar net worth won't solve all your problems, take it from the man who made that kind of cash from nothing. More on that in a minute. Meet Lloyd Blankfein, ex-CEO of Goldman Sachs (NYSE: GS). I just finished his memoir, StreetWise. Full credit to the man. He became one of the top dogs on Wall Street despite coming from a humble background and, somewhat oddly, not even being that interested in finance or business originally. It just wasn't a big part of his world as a young fella. Lloyd studied law, got bored with that kind of gig, then got a job in a commodity trading firm. Goldman later acquired the firm, and he was in the door, so to speak, to the storied investment bank. Lloyd made partner as he worked his way up... and ended up seriously rich. Here's an early takeaway on markets... "Managing traders, I observed that what distinguished the best ones wasn't that they were necessarily right more than the others. They simply adjusted more quickly. They made more money when they were right and lost less money when they were wrong." Loss aversion can kill you, in other words. What makes great traders differentHere's another that seems pertinent to the markets today, especially as AI dictates more trading: "The quants tell you what should happen based on statistics. The traders know what can happen in markets, based on hard experience." One wonders what quant funds make of the current block in the Strait of Hormuz. There are no statistics for that directly. Lessons from the GFCProbably the most interesting part of the book is when he takes us through the 2007-2009 period. Even as head of Goldman Sachs, Lloyd didn't know how bad it would get. He writes: "We had no overall view on which way the market would go.... There was little comprehension even among the most sophisticated thinkers in finance about the way defaults on subprime loans could affect AAA-rated mortgage securities, and credit markets generally." It's hard not to think that the future is just as hazy for the men and women at swish names like Goldman Sachs as it is for the rest of us, despite the fancy suits and big pay cheques. Even inside the company there wasn't agreement. What saved Goldman relative to the other Wall Street firms is they acted more conservatively due to Lloyd's aversion to "tail risks". Smart move, in hindsight. Here's how Lloyd sums up why competitor Bear Stearns collapsed:
Think about that for a moment. Does this sound like responsible financial management from a Wall Street "investment" bank? Hardly. That's what they did. It was more like a gambling shop. Pressure, perspective and Warren BuffettOne anecdote that sticks out is the relaxed way Warren Buffett rolls. Lloyd writes: "With Warren, you get one shot. If he doesn't like your proposal, or you don't like his, it's over. He proposed putting $5 billion into the firm... I started talking to him about how we could execute his investment and was about to go over some open questions." "That's all fine," he said. "I trust you. I'm taking my grandson to Dairy Queen." You kind of feel sorry for Lloyd as the crisis drags on, and its aftermath. He and Goldman Sachs are constantly bashed in the press. He's forced to fire staff. Protestors camp outside his apartment. He's dragged in front of government officials regularly. Endless flying and meetings. There's a chance Goldman goes under from the general storm. They might have to merge with another company. The share price tanks. All very high stress. Then he gets cancer. That puts it all in perspective. Eventually, he's jack of all the hassle. He retires to read books, travel and trade the market with his own cash. The real takeaway for investorsAnother handy conclusion for us is this one... "I always thought the future was unknowable. Most of the biggest changes in my lifetime, including the end of the Cold War, the rise of China, the arrival of the internet, and rapid transformations wrought by AI, were not just unforeseen but large unforeseeable until they were upon us. Predict the future? We can barely predict the present." His main message is that the biggest danger is the thing you don't know about or expect. The only thing you can ever do is plan for any scenario so nothing can wipe you out completely. That's one of our principles here at Marcus Today: "Risk is unavoidable - make decisions using a balance of probabilities." I'm sure Lloyd would agree. |
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9 Apr 2026 - Phil Strano: Staying the course in credit
8 Apr 2026 - Q&A: Four forces currently shaping equity markets
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Q&A: Four forces currently shaping equity markets JCB Jamieson Coote Bonds March 2026 (6-minute read) In this Q&A, Portfolio Managers Jeremiah Buckley and Michael Keough share their perspectives on geopolitical uncertainty, why they remain constructive on earnings growth, where they see inflation settling, and what AI disruption means for software. Q: Geopolitical events like the war in Iran can move markets quickly. How do you approach investing through that kind of uncertainty? Michael Keough: Geopolitical events can carry real tail risks that are hard to model, but the key question is what will the sustained economic impact actually be? Often, it's more limited than the initial reaction suggests. Our current read is that this appears to be a shorter-duration campaign focused on specific military infrastructure rather than broader energy systems. If the Strait of Hormuz reopens in the near future and energy infrastructure is not significantly disrupted, we expect the oil price spike is likely to be temporary but potentially lasting the first half of the year. We are also mindful that the administration must balance their objectives for this campaign with the upcoming midterm elections. It also helps to consider where we started. Oil had been at fairly low levels, around $50 to $60 a barrel, and the world was already oversupplied by roughly 2 million barrels a day heading into this. Iran produces about 3 million barrels a day, and we do not expect a sustained removal of that supply. More broadly, our approach during periods like this is to lean into quality and use volatility as an opportunity. In our asset allocation portfolios, we came into 2026 with a meaningful overweight to equities based on our view that earnings growth would remain positive. We didn't anticipate this level of geopolitical disruption, but we don't see it materially changing the fundamental picture for the year, which is supported by a number of tailwinds. If markets continue to sell off, our bias is to add to equities selectively. It's worth noting the opportunity cost of becoming too defensive. Over the last couple of years, being too conservative, such as holding too much cash or underweighting equities, meant missing the recoveries that drove the bulk of returns. Historically, a handful of strong market days have contributed an outsized share of long-term equity returns, and investors need to be positioned to capture them. Exhibit 1: Value of a hypothetical $10,000 investment in the S&P 500® Index from 1999 - 2024.
Q: You mentioned the fundamental picture remains intact. What gives you confidence, and where are you seeing the opportunity? Jeremiah Buckley: The earnings story has broadened considerably, and that's central to our constructive view. AI infrastructure and large internet platforms have been growing strongly, but they are no longer carrying the market alone. Other sectors have started contributing meaningfully, including biotech, healthcare equipment, digital payments, and financial services. Innovation in these areas is translating into earnings. Technology-related capital expenditures are contributing roughly a third of GDP growth in 2026, and the benefits are flowing well beyond the infrastructure build itself. Exhibit 2: Strong revenue and earnings growth is expected broadly across sectors for 2026
Source: Bloomberg, as of January 2026. CY=calendar year. There are also tailwinds that tend to get overshadowed by headlines from geopolitical events. Tax reform, deregulation, and the early productivity gains from technology investment are all constructive for corporate earnings and haven't gone away. We can also be active in how we are positioning through near-term volatility. In 2025, we used periods when cyclical sectors were being indiscriminately sold off to rotate into more cyclical exposure. We think a similar dynamic may be developing now, and we'll be looking for opportunities to act on it. Q: There's been a lot of debate about whether inflation can get back to 2% or whether 3% is the new normal. What is your view? Keough: We think getting back to 2% is going to be difficult to sustain. Structural pressures remain, including supply constraints, a modest degree of deglobalization, higher energy prices, and slower population weighing on labor. AI could help offset that last point, but probably not enough on its own unless productivity gains substantially exceed current expectations. That said, some of the forces that held inflation elevated are fading. Tariff-related goods inflation is being lapped, year-over-year comparisons are getting easier, and some tariffs have since been reduced by court rulings. Those headwinds are becoming less of a factor as the year progresses. Our base case is around 2.5%, with long-term inflation expectations closer to 2%, and we'd argue that's a reasonably healthy environment for equities. It gives companies a bit of pricing power without forcing the Federal Reserve to tighten. Given the other tailwinds supporting earnings growth, it fits into what we still see as a constructive backdrop. Q: As AI is adopted more broadly, risks to certain parts of the market are becoming clearer. How are you thinking about those risks, and what does it mean for software? Buckley: Having watched many technology cycles, we do think there is some degree of overhype embedded in this one, and we're watching returns on invested capital closely across the infrastructure build. Spending will plateau at some point, and the market will need to digest it. The early evidence on returns is encouraging. Meta's advertising revenue growth is perhaps the clearest example of AI investment generating real, measurable results, but that is one data point in an evolving story. Where we're seeing the hype manifest most acutely is in the market's treatment of software. The software index is down roughly 18% year to date as investors price in disruption from AI. Some of that concern is legitimate, but we don't think the market is distinguishing well between companies that will be genuinely disrupted and those that are adapting effectively. Exhibit 3: S&P Software & Services Industry Index, year-to-date through 16 March 2026
Source: Bloomberg, as of 17 March 2026. The S&P Software & Services Select Industry Index comprises stocks in the S&P Total Market Index that are classified in the GICS Application Software, Interactive Home Entertainment, IT Consulting & Other Services and Systems Software sub-industries. For high-quality software businesses, there's more to their competitive position than the software itself - distribution, customer relationships, and implementation support all factor into the equation. Those advantages don't disappear overnight. We're starting to see some stabilization in the space, but the longer-term sorting out process is underway, and we expect it to create real opportunities for active management. IMPORTANT INFORMATION Artificial intelligence ("AI") focused companies, including those that develop or utilize AI technologies, may face rapid product obsolescence, intense competition, and increased regulatory scrutiny. These companies often rely heavily on intellectual property, invest significantly in research and development, and depend on maintaining and growing consumer demand. Their securities may be more volatile than those of companies offering more established technologies and may be affected by risks tied to the use of AI in business operations, including legal liability or reputational harm. Equity securities are subject to risks including market risk. Returns will fluctuate in response to issuer, political and economic developments. Funds operated by this manager: CC Jamieson Coote Bonds Active Bond Fund (Class A) , CC Jamieson Coote Bonds Dynamic Alpha Fund This information is for professional and wholesale investors only and has been prepared by JamiesonCooteBonds Pty Ltd ACN 165 890 282 AFSL 459018 ('JCB'). Channel Investment Management Limited ACN 163 234 240 AFSL 439007 ('CIML') is the Responsible Entity and issuer of units for the CC JCB Active Bond Fund ARSN 610 435 302, CC JCB Global Bond Fund ARSN 631 235 553 and the CC JCB Dynamic Alpha Fund ARSN 637 628 918 (collectively 'the Funds'). Channel Capital Pty Ltd ACN 162 591 568 AR No. 001274413 ('Channel') provides investment infrastructure and distribution services for JCB and is the holding company of CIML. |
Past performance is no guarantee of future results. Investing involves risk, including the possible loss of principal and fluctuation of value.
