Fund Product, Company and Regulatory Updates as at 31 October 2019
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Product Updates
VanEck launches fixed income exchange-traded fund
The VanEck Vectors Australian Subordinated Debt ETF (ASX: SUBD) is a fresh launch for the company set to capitalise on debt issued by Australia’s largest financial institutions. The portfolio has 12 positions currently, averaging a credit rating of BBB+. The ETF attracts fees of 0.29 per cent per annum. The fund uses the iBoxx AUD Investment Grade Subordinated Debt Index.
Robeco launches multi-factor fund
A multi-factor fund has been launched for Australian investors by global investment manager Robeco. The Robeco Multi Factor Absolute Return Fund comes with what Robeco calls an enhanced sustainability profile, targeting a six per cent absolute return over cash. The fund is managed by Robeco’s Quant Allocation team headed by Guido Baltussen and Pim van Vliet.
Ethical Advisers Funds Management launches range of SMAs
A group of financial advisers have launched a range of separately managed accounts (SMAs) via Ethical Advisers Funds Management in a bid to address the possible future demand that the FASEA code of ethics may create. The SMAs screen for oil, tobacco, weapons, heavy polluters, gambling and coal, and target healthcare, recycling, education, sustainable technologies, clean energy and aged care.
Terry Pinnell is the portfolio manager and head of stewardship, Louise Edkins is head of investments, and Luke Price is portfolio manager and head of research. The SMAs include growth, fixed income, mid-cap and large-cap options.
Statewide Super builds physical SuperHub centre in Adelaide
Statewide Super has built a dedicated superannuation education hub that is open to all superannuation members, not just those that belong to Statewide Super. The centre is for the general public to access information on superannuation and if appropriate, seek advice on superannuation.
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Company Updates
MSC Trustees launches fund admin platform
A new fund administration platform, MSC Abacus, has been launched as a tailored fund registry, reporting and accounting service for capital managers. Priya Sharma (Blue Sky) is leading the business. All services are white-labelled and tailored to each client, contracting via MSC Abacus instead of the trustee.
Catholic Super and Equipsuper join forces in scale play
The joint venture between Catholic Super and Equipsuper, Togethr, has been launched, with new funds able to join what the funds are calling a scale play. The two funds hold $26 billion in funds under management with 150,000 members. The joint venture has a skills-based board of 12 directors lead by chief executive Scott Cameron. Funds can keep their own branding or merge into another fund.
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Regulatory Updates
ASIC imposes further licence conditions on IOOF, APRA will not appeal judgement
IOOF Investments Services Limited (IISL) has sought a variation on its licence so it can transfer IDPS, a managed investment scheme, and advice activities from IOOF Investment Management to IISL as part of a greater reorganisation plan. ASIC has granted the variation with additional conditions that relate to the governance, structure and compliance of the company.
APRA has stated that it will not be appealing the Federal Court decision to dismiss the court action taken by APRA against IOOF entities, directors and executives. APRA initiated the action in December 2018 under the view that IOOF had failed to act in the best interests of its superannuation members.
