AUSTRALIA’S biggest fund manager says its stock portfolios are not shills for big money managers who have invested in the industry over the past 20 years.
The Australian Securities Exchange (ASX) has been dogged by a string of scandals over the last two years, and in a series of recent interviews has sought to downplay the extent to which it is linked to big money.
But James Graham, CEO of the ASX’s largest funds, the S&P 500 ETFs, has been asked to respond to a question from the ABC about whether ASX investors are not “shill” investors.
“Our stock portfolios were never designed to be shills,” Mr Graham said.
What is shilling?
“Shilling” is when someone invests in a market where their own personal beliefs or biases are influential, and who then spreads that information around to investors.
The ASX has been criticised for the way it has chosen to use the fund’s funds, and it is not clear what the ASF expects investors to do with those funds.
Mr Graham said that he believed the ASEXs portfolio had been designed to serve its investors well, but he would not elaborate.
He said the ASY had a “good understanding” of the fund, and the ASMEs fund was “not shilled” as the ASIX was.
ASX CEO James Graham says ASX fund “does not shill” for big fund Mr Grigson said he was not sure whether there was a difference between the ASG and ASX.
However, he said there was “a bit of a difference” between the two funds.
“As a fund manager, I’m very clear that ASX is a fund of the broader community, and ASY is not,” he said.
“It’s not a shill.
I can’t tell you exactly what it is.”
The ASX and ASME fund is a good example of a fund that Mr Graham believes was designed to help the broader Australian community.
“[It’s] not about big money,” he added.
James Graham: ‘I can’t say exactly what [ASX] fund is’ “It’s designed to meet people who want to have a go at investing in a stock market.”
Mr Garratt said the fund was not intended to act as a shiller for the broader ASX, and that ASEX was “very careful” about the way the funds were managed.
Why did ASX decide to cut funding?
Mr Guptill said ASX was looking at the fund for the first time in more than two years.
He said he had asked for more time to consider whether it was appropriate to cut the fund to $20 billion from $25 billion.
His decision to cut was in response to a “small group of people”, he said, and was based on the results of an audit that was completed in July.
It found ASX had overvalued its share price and was failing to provide adequate support for the fund and the wider ASX market.
While ASX shares have fallen over the years, ASX chief executive James Graham said he believed his fund was an important asset class to the ASx.
In an interview with Bloomberg TV, Mr Guptil said he felt ASX would “probably go through another major correction” and that the ASMX fund was undervalued.
When asked if he thought the fund had a positive long-term return, Mr Graham did not rule it out.
AAP: ASX ‘shilled’ for $20B fund, ASME ‘shills’ for less than $20M article The ASF said it did not want to speculate on the matter and said it was aware of ASXs “sensible business model” and would provide “comprehensive” information when required.