Another Australia-based funds manager has released a global equities portfolio investment entity (PIE) product into an increasingly crowded NZ market.
The Insync Global Quality Equity PIE hit the register last week and follows closely on the back of three international share offerings launched in the NZ tax-efficient format in March – two from Australian managers.
Established in 2009 by Monik Kotecha, Insync is a high-conviction manager, targeting a concentrated portfolio of stocks expected to benefit “from transformative global mega- trends spanning both technology and non-technology sectors”, according to fund documents.
Since inception the flagship Global Quality Equity Fund has fallen just shy of its benchmark MSCI All Country World ex-Australia Net Total Return Index in Australian dollar terms, returning an annualised 12.31 per cent after fees and costs.
As at the end of April the flagship Insync fund reported about A$100 million under management, Morningstar figures show. The firm also offers the Global Capital Aware Fund in Australia based on the same philosophy but with downside hedging arrangements: Morningstar measures the fund at almost A$70 million.
The Insync PIE carries the same price tag as the underlying Australian unit trust of 0.98 per cent annual management fees and 0.2 per cent buy/sell spreads: the fund also has performance fees of 15 per cent of return above benchmark with a high watermark hurdle.
Insync, represented in NZ by Grant Pearson, selected FundRock NZ for PIE-hosting duties with BNP Paribas Fund Services Australasia as custodian, Apex for administration and Public Trust as supervisor.
FundRock also hosts two of the three new global concentrated equity PIEs on the block: the Australia-based Pella Global Generations Fund and the Brandywine Global Opportunistic Fund (a US manager in the Franklin Templeton franchise).
A further high-conviction international shares strategy managed by Munro Partners launched about the same time as the inaugural Adminis fund-hosting client – albeit as a wholesale-only product.
The Brandywine Global, Pella and Munro funds were all seeded by the Aurora KiwiSaver scheme but will seek broader distribution.
FundRock has rolled out four PIE-fronts this year with JPMorgan and Australian firm, Resolution Capital, launching products in global bonds and international listed property, respectively.
More than 50 retail investment schemes have been created over the last seven years including global equity options from Australian entities such as Antipodes, Dimensional Fund Advisors, Hyperion, Schroders and Stewart Investors.
Earlier this year at the Financial Advice NZ conference, Chris Douglas, Māpua Wealth principal, told FANZ delegates that local investors had been treated to almost 130 PIEs – both retail and wholesale – over the last few years.