Billionaires back climate-focused $125m Byron Bay VC fund

A Byron Bay-based venture capital firm promising to back companies trying to solve the planet's biggest problems has raised $92 million from some of Australia's richest people and drawn them to the coastal celebrity mecca for its annual meeting this week, with a side of whale watching.
ReGen Ventures, which is run by former Macquarie banker and hedge fund manager Dan Fitzgerald, has built a portfolio of 21 companies after raising $65 million for its first fund in 2021. The firm backs technology companies trying to solve climate and environmental problems.

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Herald Sun

6 hours ago

• Herald Sun

Defence shares are booming as Trump, Middle East fuel expectations for government spending

Investors who bought into defence-focused companies and exchange traded funds months before Donald Trump was elected US president are laughing all the way to the bank. As wars intensify and President Trump pressures allies to dramatically increase their defence budgets, hundreds of billions of extra dollars will soon be spent on countries' war machines – and a slice of that will flow to savvy investors. Several global defence stocks have doubled their share price in the past year, while many others have climbed three times more than overall markets in the US, Europe and Australia, which are up eight per cent to 10 per cent. Analysts say the outlook remains strong, with the Israel-Iran conflict the latest in a string of international crises. Unlike last year's AI boom, which largely focused on US companies, the defence boom spans many countries. However, some of the best-known US defence stocks Northrop Grumman and Lockheed Martin, have generated only meagre returns. This global theme, combined with the fact that Australia does not have a significant listed defence sector, means many investors are looking to exchange traded funds for global exposure, and they have been rewarded so far. Three ASX-listed defence ETFs debuted last year and have climbed between 55 and 74 per cent. The best performer is the VanEck Global Defence ETF. VanEck deputy head of investments and capital markets, Jamie Hannah, said flows into ASX-listed defence ETFs have surged since March as companies including Italy's Leonards SpA, Germany's Hensoldt AG and Britain's Babcock International enjoy 'triple-digit price growth in the last year'. Mr Hannah said government spending is increasing across Europe, the US and Asia-Pacific, providing long-term revenue for defence companies. 'We often hear the term 'arms race' used in everyday contexts, but the literal meaning of countries competing for military superiority essentially describes the current geopolitical predicament,' he said. 'The thing about an arms race is that there is no finish line and no one can ever actually win the race, yet countries, even those unwilling, are compelled to participate in order to maintain national security.' Mr Hannah said the VanEck ETF does not hold any Australian defence stocks, although clients have expressed interest in Droneshield, which is up 18 per cent in the past year. Another Australian stock with defence exposure is Perth-based Austal, which is up 164 per cent over the past year. Backed by the billionaire Forrest family, it's attracted interest from South Korea's Hanwha Group. Other local companies benefiting from defence spending include Codan, up 75 per cent, and Electro Optic Systems, up 109 per cent. Equity Trustees Asset Management head of equities Chris Haynes said Trump 'wants everyone to be more self-reliant'. Mr Haynes noted the June 5 decision by NATO Defence Ministers to strengthen the alliance's deterrence and defence capabilities, through a spending commitment of 5 per cent of GDP. 'In Europe, the NATO directive will require Germany to spend €40bn for a new infantry division,' he said. 'The political will has changed and the German chancellor says spending needs to go to 3-3.5 per cent of GDP. Rheinmetall Ag is a German company that will benefit as a result of this directly.' Investors can buy overseas defence stocks directly through brokers and platforms, but will achieve more diversification buying broader funds that allocate their money throughout the sector. Betashares senior investment strategist Cameron Gleeson said many global defence contractors, including Rheinmetall, BAE Systems and Palantir, have seen a significant increase in orders and new government contracts. 'Investors are seeking exposure to the earnings growth these companies are experiencing, as well as the long tail of innovation that increased defence spending often provides,' he said. 'However, while defence companies are showing strong performance, much of the growth is happening outside Australia. As a result, investors may wish to look beyond the ASX for exposure to more mature global players with diversified revenue streams and government-backed contracts.' Mr Gleeson said investors should not focus solely on defence. 'Consider this sector for a satellite allocation, complementing a well-diversified core portfolio of Australian and international equities,' he said. Stake markets analyst Samy Sriram said defence ETFs are benefiting from investments in Palantir Technologies, which provides AI-powered defence software and sensors and has surged more than 440 per cent in a year. 'Palantir is a major beneficiary of higher defence spending, as it relies on government contracts for revenue,' she said. 'It is the third most traded stock on Stake this year. Firms that are investing in AI will be seen as increasingly important to the defence sector.' Stockspot CEO Chris Brycki said the shift to higher military spending started before Trump's re-election but his victory 'has added fuel to the fire'. Mr Brycki said Germany's defence spending increase is a notable example after it 'broke from decades of fiscal restraint by lifting its post-WWII cap on military spending'. 'This was a major policy shift that signalled how seriously many countries are now taking security,' he said. Originally published as Defence shares boom as wars intensify, company revenues surge Read related topics: Donald Trump

Courier-Mail

12 hours ago

• Courier-Mail

New research reveals Australian drivers aren't ready to embrace fully autonomous driving

Don't miss out on the headlines from Motoring. Followed categories will be added to My News. EXCLUSIVE: As several brands set to launch full self-driving technology on Australian roads, new research reveals many Aussies aren't ready to take their hands off the wheel. According to mycar Mobility Index, a mere 19 per cent of Australians said they would be willing to use a fully autonomous vehicle for most or all of their journey. Additionally, 40 per cent said they don't feel comfortable giving up full control. Many said they don't know enough about the technology or either don't feel safe using it. Sydney-based marketing professional Tara isn't excited about fully autonomous vehicles but nervous. Picture: Supplied When Sydney-based marketing professional Tara first heard about fully autonomous vehicles, she didn't feel excited but nervous. 'Honestly, it makes me feel uneasy,' she said. 'Driving involves so many unpredictable situations – like if someone runs into the street or there's a sudden change in weather. It's hard to imagine sitting back and trusting a car to make those split-second decisions for me.' Despite driving a Honda Civic that has cruise control, lane assist and parking sensors, Tara said she rarely uses the features and has no plans to embrace full autonomy anytime soon. The findings by mycar Mobility Index also reveal that driver trust is lacking and far behind the rapidly evolving technology we're seeing on Australian roads. A Waymo autonomous self-driving Jaguar taxi drives along a street in Los Angeles, California. Picture:Mycar chief customer officer Adele Coswello said the industry is still facing major trust problems and that is holding back adoption. 'Autonomous technology has the potential to change how we move, but right now, trust is the biggest roadblock,' she said. 'This year's Mobility Index shows that many Australians are still unsure – not just about the safety of self-driving cars, but how they work and what they mean for everyday drivers.' Even smart technology in today's vehicles are being under-utilised. Only 1 in 3 are using assisted driving technology like cruise control (32 per cent), lane assist (31 per cent), brake assist (28 per cent) or parking assistance (22 per cent). That's despite more than 76 per cent having this technology in their car. Amazon's self-driving company Zoox testing its autonomous vehicle. Picture: Tayfun Coskun/Anadolu via Getty Images Coswello believes the reason many drivers aren't using assisted driving technology is because automakers are failing to explain them. 'Only a small number of Aussies are embracing the smart systems that are available in the vehicles of today, and we believe the industry needs to build understanding and confidence in assisted driving technologies. That includes ensuring technicians are upskilled in the latest technologies and systems to help educate drivers. By doing so, we can help prepare drivers for the future – one service and one conversation at a time,' she said. The lack of technical explanations is something Tara has experienced first-hand. 'I'd also want to see more clear, straightforward explanations from car companies about how the systems work, what their limitations are, and what kind of back up measures are in place. Most importantly, though, I'd want to know I could quickly and easily take back control if something didn't feel right,' she said. Despite more than 76 per cent of respondents having some form of assisted driving technology, only 1 in 3 are using it. Picture: Supplied She also believes brands are failing to strike the right tone in delivery. 'A lot of the messaging feels too technical or overly optimistic. I think companies need to do a better job of breaking things down in plain language and addressing the real concerns people have,' she said. 'This would help to build trust and reassurance that the technology works, and that there are the right safeguards in place.' Internationally, car brands like XPeng, Nio and BYD are racing ahead offering level 3 and 4 autonomous capabilities in their home market. Tesla's Full-Self Driving technology is about to launch in the US next week in their robotaxis. But Australia looks a little more cautious and Australian drive like Tara are happy to keep their hands on the wheel. Originally published as Aussies not ready for advanced technology despite tech take off

7NEWS

18 hours ago

• 7NEWS

FedEx founder Fred Smith dies at 80

Fred Smith, the FedEx Corp founder who revolutionised the express delivery industry, has died, the company said. He was 80. FedEx started operating in 1973, delivering small parcels and documents more quickly than the postal service. Over the next half-century, Smith, a Marine Corps veteran, oversaw the growth of a company that became something of an economic bellwether because so many other companies rely on it. Memphis, Tennessee-based FedEx became a global transportation and logistics company that averages 17 million shipments per business day. Smith stepped down as CEO in 2022 but remained executive chairman. Smith, a 1966 graduate of Yale University, used a business theory he came up with in college to create a delivery system based on coordinated air cargo flights centered on a main hub, a 'hub and spokes' system, as it became known. The company also played a major role in the shift by American business and industry to a greater use of time-sensitive deliveries and less dependence on large inventories and warehouses. Smith once told The Associated Press that he came up with the name Federal Express because he wanted the company to sound big and important when in fact it was a start-up operation with a future far from assured. At the time, Smith was trying to land a major shipping contract with the Federal Reserve Bank that didn't work out. In the beginning, Federal Express had 14 small aircraft operating out of the Memphis International Airport flying packages to 25 US cities. Smith's father, also named Frederick, built a small fortune in Memphis with a regional bus line and other business ventures. Following college, Smith joined the US Marines and was commissioned a second lieutenant. He left the military as a captain in 1969 after two tours in Vietnam where he was decorated for bravery and wounds received in combat. He told The Associated Press in a 2023 interview that everything he did running FedEx came from his experience in the Marines, not what he learned at Yale. Getting Federal Express started was no easy task. Overnight shipments were new to American business and the company had to have a fleet of planes and a system of interconnecting air routes in place from the get-go. Though one of Memphis' best-known and most prominent citizens, Smith generally avoided the public spotlight, devoting his energies to work and family. Despite his low profile, Smith made a cameo appearance in the 2000 movie Cast Away starring Tom Hanks. The movie was about a FedEx employee stranded on an island. 'Memphis has lost its most important citizen, Fred Smith,' said US Rep Steve Cohen of Tennessee, citing Smith's support for everything from the University of Memphis to the city's zoo. 'FedEx is the engine of our economy, and Fred Smith was its visionary founder. But more than that, he was a dedicated citizen who cared deeply about our city.' Smith rarely publicised the donations he and his family made, but he agreed to speak with AP in 2023 about a gift to the Marine Corps Scholarship Foundation to endow a new scholarship fund for the children of Navy service members pursuing studies in STEM. 'The thing that's interested me are the institutions and the causes not the naming or the recognition,' Smith said at the time. Asked what it means to contribute to the public good, he replied: 'America is the most generous country in the world. It's amazing the charitable contributions that Americans make every year. Everything from the smallest things to these massive health care initiatives and the Gates Foundation and everything in between,' he said. 'I think if you've done well in this country, it's pretty churlish for you not to at least be willing to give a pretty good portion of that back to the public interest. And all this is in the great tradition of American philanthropy.'