Institutional ownership

[DerAktienDude]

Well spotted!
However, just to clarify: We are talking about a total of 3.5 million shares here, not about a total of 7 million shares, right?

Let me explain for those of you who are confused now - at least this is how I understand it: DUI Wertefinder is one of two mixed funds by asset management company FV Frankfurter Vermögen AG holding BRN shares. The other is called DigiTrends Aktienfonds, but that one doesn’t show up in the Top 20 mutual fund ownership table Humble Genius posted on Sunday, as its holding of BRN shares is not large enough.

For the DigiTrends Aktienfonds, the most up-to-date document I found on their website is almost a year old - on Nov 30, 2022 the fund held 1,500,000 BRN shares. According to Morningstar, it has since increased its amount of shares to a total of 1,875,000 shares. And DUI Wertefinder, as HG rightly noticed, increased its shares in BRN by 3.5 million since end of June and now holds a total of 17,700,000 shares. That’s why Frankfurter Vermögen is listed as an institutional holder of 19,575,000 shares (17,700,000 + 1,875,000), and of course that’s why they are also up by 3.5 million in the institutional ownership table. It is the exact same amount of 3.5 million shares that is reflected in both tables.

As far as I understand (sorry, I don’t have any background in finance and may not use the correct terms), those two funds have been launched by FV Frankfurter Vermögen AG via a fund services platform offered by Universal Investment GmbH. Frankfurter Vermögen is hence normally listed as the funds’ institutional owner; however, on Morningstar, for some reason Universal Investment is named instead. And strangely as owner of 17,700,000 shares only - did the DigiTrends Aktienfonds vanish into thin air? I can’t match their number of shares with any other institutional owner in the respective Top 20 (see below) where they’d belong, with more shares than Blackrock and Charles Schwab Investment Management. Weird…

To make things even slightly more complicated: Since 2011, Frankfurter Vermögen has also been an investment adviser for a Spanish mutual fund called Renta 4 Wertefinder FI which unsurprisingly is invested in BRN as well. Listed as the fund’s institutional owner is Renta 4 Gestora, S.G.I.I.C., S.A., the investment management branch of Spanish bank Renta 4 Banco.


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So to sum it up - the following three underlined mutual funds have all been either launched by or are connected to Frankfurter Vermögen.


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Another interesting observation:

Provided the Morningstar figures for institutions that recently invested in BRN are correct, I noticed that the top three entities all happen to be connected to AMP (AMP Group, AMP Capital Investors Limited and IPAC Asset Management Limited) and together have bought just shy of 11.3 million BRN shares in recent weeks. Plus a couple of more AMP-related entities buying smaller amounts in the 100,000s and 10,000s.

But then of course this begs the question of why those AMP-related entities do not show up in your institutional ownership table, @Humble Genius? Curiouser and curiouser…

Do they possibly hide behind a nominee account? Perhaps behind JP Morgan in the BRN Top 20 shareholder list? When comparing the 2nd and 3rd quarter lists, @GazDix noticed JP Morgan had been the “biggest accumulators on the dip”, buying “over 20 million shares the last two ‘terrible’ quarters.”

I reckon somebody connected to AMP must be really bullish about BRN…


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AMP Limited - Wikipedia

en.m.wikipedia.org

AMP is a financial services company in Australia and New Zealand providing superannuation and investment products, financial advice, and banking products (through AMP Banking) including home loans and savings accounts. Its headquarters is in Sydney, Australia.

AMP Limited

Type	Public
Traded as	ASX: AMP
Industry	Finance
Founded	1 January 1849; 174 years ago
Headquarters	Quay Quarter Tower, Australia
Key people	Debra Hazelton, (Chair) Alexis George(CEO)
Products	Financial services
Net income	A$972 million (2015)[1]
Total assets	A$110.4 billion (2015)[2]
Number of employees	4,826[3]
Divisions	AMP Capital AMP Financial Services Axa Asia Pacific
Website	amp.com.au

The Australian Mutual Provident Society was formed in 1849 as a non-profit life insurance company and mutual society. In 1998, it was demutualised into an Australian public company, AMP Limited, and listed on the Australian and New Zealand stock exchanges.

AMP has one of Australia's largest shareholder registers, with most shareholders living in Australia and New Zealand. This is because when the society demutualised, all policy holders received shares in the new company.

(…)

The company provides financial planning and advice, banking, life insurance, managed funds, superannuation, property, listed assets and infrastructure. It is Australia's largest retail and corporate superannuation provider, and is the largest life risk business in Australia. One of AMP's subsidiaries, AMP Capital, was the aligned wealth manager, with more than A$128 billion[11] in assets under management, making it one of the largest asset managers in the Asia Pacific (excluding Japan) region. AMP Capital has now been stripped out of the AMP Group, along with AMP Life and sold to Dexus and Resolution Capital respectively. AMP Wealth is now the appointed investment manager within the AMP Group.

AMP has four main business areas:

• Advice and banking provides financial planning and advice, superannuation services for businesses, and selected banking products. These products and services are primarily distributed through a network of self-employed financial planners. AMP has been granted a [MySuper] authority, enabling it to continue to receive default superannuation contribution from 1 January 2014.
• Insurance and superannuation provides superannuation, personal risk insurance products and self-managed super fund administration, support and design. These products and services are primarily distributed through a network of self-employed financial planners
• Customer solutions
• AMP Capital is a global investment manager.

(…)

Great work

 

[Frangipani]

Sherlock who?

Wow is just so inadequate.

Boggles my mind!

My dear Watson, in this case I trust you will be pleased to learn that I whipped out my magnifying glass once more to investigate yet another institutional investor. This time Spatium Capital caught my eye.

My educated guess is that this Melbourne-based company will no longer show up in the investor ownership list by the time it gets updated. The reason being that extended ports of call are not part of their investment journey.

Those guys are by no means shorters, though.

The first five minutes or so of the InDepth video (https://www.spatiumcapital.com/insights) are equally enlightening regarding the company’s investment strategy. Interviewee Nicholas Quinn is driving the message home that he and his co-founder consider falling in love with a stock a bad idea and see no benefit in letting their winners run. Instead, they follow through with their exit strategy. According to him, Spatium Capital’s longest holding period for a stock so far was 171 days and the shortest all of two business days, but between those two extremes, the average holding period ranges from 30 to 45 days.

Consequently, I wouldn’t be in the least surprised to find out they sold all of their recently acquired 524,648 shares today, Nov 8 (if they hadn’t already bid farewell to them over the past couple of days ) and opened a magnum bottle of champagne to celebrate their massive profit taking after what they’d consider a precision landing and subsequent lift-off!

Which doesn’t necessarily mean they will be gone for good. In case of the share price tanking again in the absence of substantial news, they might well jump aboard once more to ride that next wave up again. Volatility is their friend. Their investment strategy version of “buy low, sell high” may not be everyone’s cup of tea, and many long term shareholders will consider Spatium Capital’s perceived impatience as short-sighted (even though admittedly, their tactics seem to have been quite lucrative for them so far), but we should at last give them credit for identifying BRN as a massively undervalued ASX 300 company (not everyone in the financial world would agree!) and for helping to stabilise the share price in the doldrums.

Yet, at the same time we don’t have to feel sorry for them on eventually missing out on that legendary hockey stick curve. Let alone any future dividends.
After all, they kind of failed the marshmallow test.

 

[Frangipani]

It’s me again! ️
I am re-posting the list of institutional investors that recently bought into BRN (before Oct 31), but this time the screenshot actually shows both the number of newly purchased shares and the total number of shares currently being held by the institutions.

The entities connected to AMP (underlined in red) are almost all new kids on the stock pardon block (as can be inferred from the identical amount of shares in both columns) - even though I obviously can’t tell whether they had ever been invested before and then sold out at some point in time before jumping on the bandwagon again.

In my last two posts, I already shared my research into Frankfurter Vermögen/Universal Investment and their connection to Renta 4 Gestora (marked in yellow) as well as into Spatium Capital.

Let’s have a look at the rest of those buying-the-dip institutional investors, then.
Unsurprisingly, there are the usual suspects (respectively their Australian offices) such as Vanguard, State Street Global Advisors (the inventors of ETFs), BlackRock, Legal & General, Invesco - massive globally operating asset management companies that have either been accumulating for a while now or only recently boarded the bus (L&G), as far as I can tell.
Here is a list of the world’s largest players, ranked by total AUM (assets under management):

Which leaves us with Australia’s largest superannuation fund AustralianSuper Pty Ltd, Madrid-based Esfera Capital Gestión SGIIC, a Spanish investment company focussing on technology and innovation, the Commonwealth/Colonial Group, an Australian superannuation and wealth management group, SEB Investment Management AB, a wholly owned subsidiary of Skandinaviska Enskilda Banken AB headquartered in Stockholm as well as Russell Investment Management Limited, headquartered in Seattle. This particular asset manager is interesting insofar as its website lists a number of their iconic investors, some of which qualify as potential customers of us. This may or may not mean anything.

It remains to be seen which of the institutional investors sold part or all of their shares last week or during yesterday’s massive surge in share price (my bet is definitely on Spatium Capital, which should not concern us, though, as explained in my previous post), which ones will keep buying the dips and accumulate further and which ones will come aboard again or for the very first time.

Now what puzzles me, though, is the question why those large institutional owners do not show up in the Top 20 shareholder list at all?! From the above buying-the-dip list alone, at least Vanguard Investment Australia Ltd (mind you that’s only one of several entities within the Vanguard Group invested in BRN!) as well as Universal-Investment/Frankfurter Vermögen ought to show up, both owning a whopping eight digit number of shares each, and possibly even State Street Global Advisors and the AMP Group (unless they bought their shares between Oct 22, the date on the Top 20 Shareholder list, and Oct 31). Do they all happen to hide behind nominee accounts? Vanguard behind Citicorp, for example? Or am I missing something?

Maybe one of you can solve this mystery on behalf of the clueless rest of us…