Fidelity forecasts capital raisings and fund mergers
Australia is likely to witness further capital raisings over coming months, with the likelihood of fund mergers, according to the managing director of Fidelity International in Australia, Gerard Doherty.
Doherty used a briefing this week to point to the structural shifts occurring in the industry saying they would include government and regulatory changes, mergers replacing corporate collapses and increased transparency and simplicity of investment offerings.
“The public is looking to governments to act and politicians have shown they will not let the electorate down,” he said. “Besides its financial stimulus package, the Federal Government is looking at ways to strengthen the investment industry, such as making it easier for funds to merge.”
Doherty said this would ultimately result in some changes for companies, with many taking an even more conservative stance towards managing their finances as well as strengthening their balance sheets, which was likely to result in more capital raisings.
AUTHOR
Mike Taylor
Recommended for you
The FAAA is set to launch an initiative next week to boost adviser numbers, offering support for Professional Year candidates and their supervisors.
Advice licensee Centrepoint Alliance could be more open to a proportional takeover bid after shareholders rejected a special resolution around takeover provisions.
Global private markets firm Partners Group has appointed a client solutions manager to strengthen its service offering across Australia’s southern states.
An aging profession and impending adviser exodus are fuelling a shift in the advice practice landscape, according to Adviser Ratings’ latest report, while internal restructuring prompts adviser redistribution.
