Fund-hosting firm Implemented Investment Solutions (IIS) has rolled out the first new licensed scheme of the 2020 financial year with a unique credit product servicing the Brethren community.
The just-launched UBT Invest NZ Funds is “intended to provide members of the Brethren community (Community) with an investment product that suitably satisfies the Community’s ethical requirements, as an alternative to other fixed income investments in the market”, according to disclosure documents.
“The Fund will make loans to businesses in the Community, and may make investments in other fixed income investments and cash and cash-like investments,” the disclosure note says.
UBT (stands for Universal Business Team) has appointed the Singapore-headquartered niche wealth firm Aura Group as investment manager with IIS as the NZ licensed entity. Aura also manages a similar fund for UBT in Australia.
While Aura is not a household name, the manager – founded in Australia – includes well-known Australian hedge fund identity, Damien Hatfield, among its executive directors. Another Australian investment industry stalwart, Angela Ashton, co-founder of Evergreen Consultants and former head of ratings at the now-defunct van Eyk Research, is independent chair of the UBT investment committee.
Other service providers to the UBT fund include: Adminis, for registry and fund administration; Public Trust as supervisor and custodian; and, Auckland firm Funding Partners for loan administration.
UBT has set a total fee of 1.8 per cent for the new fund with a portion paid to support Brethren-related charities including the Rapid Relief Team, which provides resources to help “youth, emergency services, homelessness, health and disability”.
With UBT, IIS, headed by Anthony Edmonds, now counts nine fund-hosting clients including Legg Mason Brandywine Global, Russell Investments, Antipodes and Hunter.
“Within our fund hosting business we have created PIE funds for global managers, adviser businesses and family offices – so working with UBT has further broadened the types of clients we work with,” Edmonds said. “UBT’s unique model and approach to business have really impressed my team.”
Aside from the UBT launch, four other investment products have registered on Disclose since April 1 – all under the trans-Tasman Mutual Recognition Regime.
The latest tranche of Australian funds preparing for NZ distribution includes a property product from ASX-listed financial services firm, Fiducian, and two from Specialised Private Capital. Specialised, which trades as Centric Capital, acts as responsible entity (similar to the IIS fund-hosting duties) for a number of products including the two dressed up for NZ consumption: the Global Systematic Equities fund; and, the Australian Small and Mid-Cap fund.
Vinva Investment Management is the underlying manager for the Global Systematic fund while the Small and Mid-Cap product is a shared effort between Ophir Asset Management and Selector Funds Management.
Founded in 2010 by former Barclays Global Investors Australia investment team members, Vinva has about A$27 billion under management.