Macquarie

Asset management has grown considerably since Macquarie pioneered an infrastructure business in the 1990s, totaling about AUD 770 billion(at March 2022) split roughly 70/30 in public/ private markets. In Australia, Macquarie also distributes third-party managers catering to high-net-worth clients. Macquarie has methodically integrated U.S.-based Delaware Investments since acquiring it in 2009. This is especially visible in fixed interest, a significant component following several years of successful and stable management. Macquarie’s opportunism has its merits, though it can engender staffing and product distractions when integrating overlapping capabilities, such as Waddell& Reed(Ivy Investments) and AMP Capital in 2021/22. More pertinently, across the substantial footprint of public market assets beyond fixed interest, we see few examples of clear strength or conditions that are clearly conducive to maintaining lasting success. When allied to an uneven history with internally managed equity capabilities(including Australian fundamental and Asian equities), we are more circumspect. That said, fund performance influences 70% of variable staff remuneration, which helps investor alignment, while longer-term remuneration comes via gradually vesting Macquarie stock.