Fund Product, Company and Regulatory Updates as at 12 November 2019
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Product Updates
Willis Towers Watson launches global equities fund
The Global Equities Focus Fund (GEFF) is Willis Towers Watson’s first Australian-domiciled multi-manager fund, launching this month. Perpetual Corporate Trust has been named the responsible entity for the fund. Expressions of interest are being taken from industry participants such as superannuation funds and insurers.
Auscap AM launches global equities fund
A new global equities fund is being launched by Auscap Asset Management, a boutique set up by former Goldman Sachs directors Tim Carleton and Matthew Parker. So far the firm has run a long/short Australian equities strategy.
After adding Naveen Patney and Josh Phillips to its investment team, the new Auscap Global Equities Fund is set to take flight soon. The strategy will hold 25 to 50 positions, aiming to deliver absolute returns over the long-term. Fees are 1.5375 per cent of the net asset value of the fund and 15.375 per cent of outperformance to the benchmark, subject to a high watermark.
K2 AM closing global equities fund
The K2 Global Equities Fund, a listed investment trust, is closing down. Investors can transfer to the unlisted version of the fund or into a final distribution. Trading commenced from July 2015 with the trust having $4 million in funds under management, but has since been halted so orderly arrangements can be made for the fund wind up. The fund has performed poorly over the past year.
K2 said the unlisted version of the fund, the K2 Global High Alpha Fund, had been a more popular investment. Investors can have the buy/sell spread waived if they wish to transfer into another K2 investment.
BT shutters two funds
BT Financial Group has closed down two funds, the Advance Global Property Fund ($670 million) and the Advance Asian Shares Multi-Blend Fund ($293 million). The funds were wound up due to reduced funds under management and a decrease in demand, thus being unsuitable for retail investors
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Company Updates
Sunsuper and QSuper in merger talks
AustralianSuper is currently Australia’s biggest superannuation fund, however, that title may soon be given to a new entity with Sunsuper and Qsuper in merger talks. Sunsuper has $70 billion and QSuper has $113 billion in funds under management.
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Regulatory Updates
QWL assets frozen
The Australian Securities and Investments Commission (ASIC) has obtained consent orders and undertakings in a New South Wales court against (sole director) Ross Hopkins, QWL Pty Ltd and QWL Asset Management Pty Limited. The orders prevent Hopkins and QWL from dissipating or diminishing the value of their assets and providing financial services to clients without prior approval from ASIC.
Hopkins and QWL allegedly failed to assist the Australian Financial Complaints Authority (AFCA) to resolve client complaints and as a result, ASIC is investigating.
ASIC takes action against superannuation trustee, promoter, director
ASIC has commenced action in South Australia against a group of entities promoting MobiSuper Fund, a division of the Tidswell Master Superannuation Plan (Fund). The action is against Tidswell Financial Services Ltd (an Australian financial services licensee), MobiSuper Pty Limited (promoter), Mobi’s AFS licensee ZIB Financial Pty Limited, and MobiFund and ZIB director, Andrew Grover.
ASIC is concerned about possible harm to consumers due to superannuation trustees not adequately monitoring their promoters. ASIC is concerned that Tidswell and ZIB have failed to ensure the financial services covered by their licences have been provided efficiently, honestly and fairly. ASIC has alleged that Tidswell and ZIB weren’t sufficiently monitoring MobiSuper’s promotion of the superannuation fund and that there was insufficient regard for the best interests of consumers. There are also allegations of false and misleading statements being made about financial services.
MobiSuper was offering obligation-free ‘lost super’ searches to consumers with the alleged primary objective to get consumers on board with the fund and rollover their superannuation balances to Mobi-related products. ASIC is alleging that when MobiSuper customers received marketing calls, misleading claims were put forward about fee savings and insurance cover. It is alleged that personal advice was provided that was not in the consumer’s best interests.
