Fund Product, Company and Regulatory Updates as at 4 February 2020
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Product Updates
Elevate Super for millennials launches
A sub-plan of Aracon Super, Elevate Super, has launched. The new superannuation fund targets millennials and is insured by Hannover Re, with fund managers including Nanuk Asset Management and Alphinity. Aracon is the trustee. The fund is not a MySuper fund, and according to Rainmaker analysis, the product fees and total expense ratio are above the Rainmaker benchmark of 1.19 per cent on a $50,000 for a personal product. Elevate has two investment options - balanced and growth.
Single investor shuts down boutique Aussie equities fund
After one investor redeemed their funds, equating to 60 per cent of the fund’s assets, a boutique fund has been terminated. Ganes Value Growth Fund had about $15.2 million in assets under management, down from $27.5 million the previous financial year. The manager is Ganes Capital Management.
VanEck launches income product and its first active ETF
The Low Income ETF Model Portfolio offers greater exposure to Australian equities, a change from VanEck’s typical global equities portfolios. The new product is directed at retirees.
VanEck has also launched its first active exchange-traded fund investing in emerging market bonds, with a target of five per cent of annual yield after fees. The Emerging Income Opportunities Active ETF (Managed Fund) (ASX: EBND) will hold EM debt securities, denominated in their local currency and US dollars.
BlackRock closes ASX-listed ETF
The iShares MSCI Taiwan ETF has been trading in Australia since 2007 but is being closed down due to uninspiring performance. The fund was the only dedicated ETF for Taiwanese stocks.
Schroders planning private equity fund for local investors
Later in 2020, Schroders is bringing in a private equity fund for sophisticated Australian investors. The new fund invests in externally-managed private equity funds, sitting under the Adveq brand. Adveq manages around $15 billion globally.
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Company Updates
EISS rebrands after name confusion
EISS Super (the Electricity Industry Superannuation Scheme) is now ElectricSuper. The fund remains the same, but the name change was required due to the other fund of almost the same name, EISS Super - the Energy Industry Superannuation Scheme. Each fund has been fielding 2-3 calls per week meant for the other superannuation fund.
Link loses AvSuper to Mercer
AvSuper has appointed Mercer Administration Services as its administrator after a competitive tender process that saw incumbent Link dropped. Link has worked with AvSuper since 2013.
Sargon collapses
Sargon Capital has been placed in administration, resulting in a trading halt on OneVue, our local major unit registry and investment administration business. The principals of the business are husband and wife team, Phil Kingston and Fiona Borelli. Sargon has been attempting an aggressive expansion in the trustee market in Australia, New Zealand and Asia. Sargon had a commitment to OneVue for the purchase of the old Diversa super administration business, however, they couldn’t get the money they required. OneVue has been paid $8 million already, but another $31 million is required to fulfil the agreement.
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Regulatory Updates
Global Merces Funds Management AFS licence suspended
The Australian Securities and Investments Commission (ASIC) has suspended the Australian Financial Services licence of Global Merces for six months from 21 January 2020. Global Merces is the responsible entity for the Global Merces Access Fund, the Global Merces Equities Fund, and Covesta. The suspension comes after Jarvis Lee Archer of Revive Financial was appointed as administrator.
Theta AM and Valuestream IM AFS suspensions
ASIC has suspended the AFS licences of Theta Asset Management and Valuestream Investment Management until 21 July 2020 after the two entities were placed under external administration. ASIC commenced action against Theta AM in the Federal Court in Western Australia after a focus on the promotion and management of the Sterling Income Trust, of which Theta is the responsible entity.
