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Morningstar runs the numbers

Lewis Jackson  |  01 Nov 2021Text size  Decrease  Increase  |  
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The US has over 4,000 banks and providing core banking services for the hundreds of small banks and credit unions gives Jack Henry a sustainable tick according to Stewart Investors: “While the vast majority of Australian banking runs through the big four, the US is fought over by more than 4,000 banks. Jack Henry (JKHY) provides the technology that helps small and medium sized banks survive against national behemoths. ‘The sustainable development story is very much about those credit unions and member owned banks having access to core banking software that they otherwise wouldn’t,’ says Pablo Berrutti of Stewart Investors.”


Morningstar’s Sylvester Flood bought BioNTech shares in late 2020, only to shy at selling them once they rocketed to $447, writes Ruth Saldanha in her recap of investing mistakes: “The company’s shares took off soon after I bought them. While I was on holiday on August 9th the company’s valuation briefly exceeded $100 billion, at a share price of $447. It had achieved what I would consider a long-term valuation level, but it had done so in a very short time. I thought, “Wait, hold on. Don’t sell. You’re in this for the long run.” I didn’t sell... shares have since fallen from $447 to about $260. I have held onto all of my shares in the meantime.”


Only 2% of the ETFS Semiconductor ETF is invested in Chinese firms, despite earning a third of fund revenue in China, I write in a review of Chinese exposure among Australian ETFs: “The revenue measure also reveals China exposure where the headquarters measure finds little. Only 2% of ETFS’s new semiconductor thematic ETF (ASX: SEMI) is tied up in China headquartered firms despite almost a third of revenue coming from the country.”


Aussie fintech Tyro Payments is set to double market share to 9% over the next decade, I write: “The firm has doubled its share of the Australian card payments market in the last five years, with close to 4% share in fiscal 2021 versus 1.6% in fiscal 2016. The firm has proved adept at building in features that appeal to its niche merchant cohorts, says Ler, for example making it possible for restaurants to split bills. Ler expects the firm to pursue acquisitions to broaden the services it offers clients. He forecasts Tyro will grow its market share to 9% over the next decade.”

Charts from last week

Australian ETF exposure to China is higher once the location of company revenue is taken into account (here)

The US Federal Reserve balance sheet will sit at historic levels even after it completes tapering of bond purchases (here)

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is a reporter and data journalist with Morningstar. Tweet him @lewjackk or get in touch via email

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