Which funds will be affected by Crown?
There are 11 funds that have Crown Resorts in their top holdings which could be affected by the ruling the company was unfit to hold a gambling licence in NSW.
Crown Resorts’ Barangaroo casino was in doubt of ever opening as an independent inquiry had found it was unfit to hold a gambling licence in NSW and three directors had stepped down.
On Wednesday, its share price on the Australian Securities Exchange (ASX) slid as much as 10% during open but ended the day down 3.35%.
Crown Resorts held two of the largest casinos in the country – Crown Melbourne and Crown Perth – as well as online betting exchange Betfair Australasia.
The most recent data from FE Analytics showed Crown Resorts had lost 8.2% of value over the last year to 9 February, 2021.
Share price of Crown Resorts over the year to 9 February 2021
There were 11 funds from three fund managers that held Crown Resorts in its top holdings.
It was held by seven Perpetual funds: Wholesale Geared Australian (9.46% allocation), Pure Equity Alpha (7.76%), Pure Value Share (7.06%), Wholesale Concentrated Equity (6.74%), Wholesale Shareplus LongShort (4.46%), Wholesale Australian Share (5.29%) and Wholesale Industrial Share (4.01%).
AMP Capital Equity Income Generator held a 3.13% allocation, as well as three IML funds: Equity Income (4.22%), Future Leaders (3.64%) and Small Caps (3.43%).
In its end of year report, Perpetual Wholesale Australian Share fund, said: “The fund’s largest overweight positions include casino operator Crown Resorts, online betting and gaming provider Flutter Entertainment, and French Gambling operator La Francaise des Jeux SA”.
Perpetual’s Concentrated equity was also overweight and its Pure Equity Alpha fund cited it as one of its largest long positions.
Michael O'Neill, IML portfolio manager, last October, said IML held gaming stocks including Crown which had already suffered during the COVID-19 sell-off.
“In particular we held a lot of gaming stocks like Tabcorp, SkyCity and Crown – all valuable long-term licences, all steady balance sheets and cashflows, but they sold off 30%-40%,” O’Neill said.
Performance of funds with Crown Resorts in its top holdings during 2020
AUTHOR
Chris Dastoor
Recommended for you
Grant Hackett has been promoted from CEO of Generation Life to head up the wider Generation Development Group.
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
