MAGELLAN - In The Know

Asset-backed credit is a well-established part of Australia’s lending market, but it operates quite differently from corporate and real estate private credit that has attracted much of the recent attention. In this episode of In The Know, Simon Brinsmead from Barrenjoey is joined by Eric Williamson, Head of Private Credit Investments and Eva Zileli, Senior Fund Manager, Credit, from Barrenjoey Private Capital. They explain how asset-backed lending works, the residential mortgages and other financial assets underpinning these investments, and the layers of protection built into securitisation structures. They also examine Australia’s non-bank lending sector, how they assess credit quality and risk, and the role asset-backed credit can play within a diversified portfolio. Barrenjoey (including Barrenjoey Private Capital) is part of Magellan Financial Group Limited (ASX: MFG). 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 and is not intended to constitute advertising or advice of any kind and you should not construe the contents of this material as legal, tax, investment or other advice.

In this episode, Magellan’s investment team looks at three interconnected investment sectors that continue to offer growth opportunities and compounding, dependable returns. The team explains how to still pick consumer-sector winners even in times of uncertainty. They explore why semiconductors are driving future innovation, being essential components powering a vast array of electronic devices we use daily. They also delve into the US energy landscape and how it is being reshaped by the growing influence of AI, data centres, and the return of manufacturing.

Infrastructure investments can provide good long-term, compounding returns, but the utilities sector — particularly electricity — is promising potentially dramatic new growth. Artificial intelligence and its need for huge, energy-intensive data centres are driving this demand. But are the promises real? Brian Van Abel, who is the CFO of one of America’s most significant energy companies, Xcel Energy, discusses the evolving new landscape with Magellan Portfolio Manager, Jowell Amores. As well as the potential for new income, they discuss increasing risks, like wildfires and how the company plans to keep its legendary below-average power bills competitive by embracing alternative energy. This Podcast is CPD Accredited for Financial Advisers: Access CPD Quiz here: https://www.magellangroup.com.au/insights/podcast-cpd-quiz-xcel-energy-a-bright-spark-to-power-growth/

The United States has spoken. President Trump will return to the White House in the new year. But how can we cut through the noise to reveal the investment, economic and geopolitical ramifications? Magellan’s Head of Global Equities and Portfolio Manager, Arvid Streimann, has over 25 years’ experience of following markets and politics, and over this time has built up a network of trusted contacts, he can offer a measured, independent view of the situation, including his expectations on Donald Trump’s policy initiatives and decision making. He’s joined by Investment Director Elisa Di Marco for an exploration of the implications of a Republican clean sweep, including the impact on standards of living and consumer sentiment, as well as the potential for deregulation, and President Trump’s promise to adopt protectionist policies in an effort to develop self-sufficiency. They share insights into geopolitical dynamics, including U.S.-China relations, Iran and Ukraine, and discuss the risks and opportunities for investors.

Geopolitical shocks can happen abruptly and when they do, the disruption to trade and global economies can be profound. In this episode of ‘Magellan In the Know’ we turn to one of Magellan’s trusted geopolitics advisers to survey the situations in the world’s trouble spots, and give sound, sometimes surprising, assessments of what to expect, and where and when to expect it. An observer with extraordinary expertise in the field, Former Acting CIA Director Michael Morell, speaks with Magellan Head of Global Equities and Portfolio Manager, Arvid Streimann surveying possible scenarios in the Middle East, Ukraine, and, closer to home, the South China Sea. It’s a frank and fascinating assessment of where disruptions may happen, the impact for investors and, among other things, what the consequences will be if Donald Trump regains the White House in November.

We are in the midst of a highly complex consumer environment, with the market bracing for losses due to spending that’s been suppressed by inflation and interest rates. But there are still shining lights and wealth to be created in the right places. In this episode of “Magellan in the Know,” Emma Henderson, acting head of Magellan’s Consumer Franchises and Healthcare team, is joined by Investment Analysts, Tracey Wahlberg and Lucina Martin, for a discussion into the complexities of the current consumer landscape. They share key factors influencing market caution, the impact of inflation on consumer behaviour, and the investment opportunities emerging amidst these challenges. From the resilience of retail giants like Costco and Amazon to the challenges for iconic brands like Nike and Estee Lauder, the team provide valuable insights for investors navigating a volatile market.

The long term regular and reliable returns from the infrastructure sector present an overwhelming opportunity. Infrastructure investing may initially seem intimidating to investors due to the substantial capital expenditures that companies require upfront. However, the long term regular and reliable returns from the infrastructure sector have the potential to grow your wealth over time with a high degree of confidence. In this episode, Magellan’s Head of Infrastructure, Gerald Stack, and Portfolio Managers Ben McVicar and Ofer Karliner discuss what they look for in attractive assets and their experiences over a combined 60 years of investing in these essential services.