The ASX-listed diversified financial services firm, Fiducian, plans to roll out a trio of funds to NZ investors.
Indy Singh, Fiducian founder and managing director, said the group would offer three of its multi-manager products to the NZ market in its first foray across the Australian border.
Singh said Fiducian was close to finalising compliant documents under the trans-Tasman Mutual Recognition regime for its India, Technology and Ultra Growth funds.
“We now have almost A$5 billion in funds under management, administration and advice,” he said. “Now it’s time to see if there’s scope for us to provide our expertise to NZ investors.”
Fiducian, which launched in 1996 before listing on the ASX in 2001, has three strings to its bow: a range of 15 multi-manager funds; a branded Australian advice network of 62 financial planners; and, an adviser technology and investment admin arm.
The group report funds under management of about A$1.6 billion as at the end of June this year with net flows of about A$170 million over the annual period.
Singh said the three products slated for release in NZ played in high-growth, niche markets that may be difficult for many retail investors to access.
“We want to offer investors something different,” he said.
The three products – the A$116 million Fiducian Ultra Growth Fund – invests in 17 underlying managers across sectors including Australian and global small caps, emerging markets, listed property securities “and some cash”.
“We select managers with different investment styles and investment philosophies to reduce risk and provide wider diversification,” Singh said.
The $44 million Technology Fund currently invests via two underlying funds offered by Wellington Management. Launched in 2000, the Fiducian Technology Fund has returned 25.6 per cent over the five years to the end of August 2016 and 10.2 per cent in the 10-year period compared to the benchmark performance of 21.1 per cent and 8.1 per cent respectively, according to the latest report.
Meanwhile, Singh said the group’s A$60 million India Fund provided investors access to one of the world’s fastest-growing economies, which is on the cusp of an era of accelerated development.
“India is now fiscally responsible, with inflation under control and reducing subsidies and a new government that is encouraging offshore investment,” he said.
According to Singh, the country is also about to embark on an almost US$2 trillion spend to bring its creaky infrastructure into the modern era.
“The India Fund gives investors exposure to some of the companies that will benefit from this growth,” he said.
The product uses three underlying Indian fund managers – SBI, HDFC and Sundaram – as ‘advisers’ with Fiducian holding the securities directly via custodians (NAB in Australian and HSBC in India). Singh said the three managers operate in different areas with one a small cap specialist, the other focusing on large cap stocks, and the third able to move across both sectors.
“We might add a fourth manager soon,” he said.
Launched in 2007, the India Fund, which is unhedged, returned just over 21 per cent in the five years to the end of August, or 10.4 per cent above benchmark. However, the fund’s performance has been volatile with, for example, a 6.1 per cent return in calendar year 2015 following a 74.8 per cent result in the previous annual period.
Singh is scheduled to visit NZ later this month with adviser meetings to be coordinated by third-party marketing firm, Heathcote Investment Partners.