Karen Robinson

When a marriage or relationship ends because of the death of a parent, the question of who is a ‘stepchild’ for superannuation purposes has changed.

In recent years, decisions of the Australian Financial Complaints Authority (AFCA) and the Courts have shifted the legal landscape, which has implications for everyday Australians planning their estates.

In stepfamilies, estate planning is rarely as simple as ‘who gets what’. Instead, couples must grapple with how to fairly distribute assets between the surviving member of the couple and the children from a previous relationship.

In all Australian states the law recognises the right of a stepchild, sometimes conditional, to challenge the Will of a step-parent. This often occurs where a step-child’s natural parent dies before their step-parent but has contributed to the accumulation of the step-parent’s wealth. The step-child may believe that a portion of that wealth should ultimately pass to them.

But what about superannuation?

While these benefits can form part of a deceased estate, they are often instead paid directly to a superannuation member’s dependants. This is not limited to financial dependants and includes, amongst others, adult children and stepchildren.

Recent decisions by AFCA and the Courts have changed the interpretation of who is treated as a stepchild on the death of a superannuation member. The accepted view is now aligned with how the meaning of step-child is interpreted by the Court in Will challenges. This aligns with changing community expectations and the evolution of traditional families in Australia.

Who counts as a stepchild?

A stepchild is the natural or adopted child of your spouse or de facto partner. It is estimated that more than 1 million Australians belong to a stepfamily.[1]

In 2011 the ATO issued guidance that a child ‘ceases to be stepchild of a step-parent when the relationship between the child’s natural parent and the step-parent ends. This means, on the death of the natural parent or the divorce of the natural parent from the step-parent.

It follows earlier cases where the Courts came to this conclusion. In these circumstances the stepchild becomes a former stepchild.

However, the current thinking has changed. The accepted view now is that the relationship between a stepchild and step-parent does not automatically end on the death of the natural parent.

Stepchild versus a former stepchild

A person’s status as stepchild or former stepchild is important because it determines whether they are eligible to be a beneficiary of a superannuation death benefit. Under superannuation laws, a stepchild is eligible, but a former stepchild is not.

If a stepchild becomes a former stepchild then their only means of benefiting directly from a former step-parent’s superannuation death benefit is if they can demonstrate they were a financial dependant of, or lived in an interdependent relationship with, their former step-parent at the time of this person’s death.

AFCA in its current approach to superannuation death benefit complaints recognises the relationship between a stepchild and step-parent continues where:

1. the marital or de facto relationship between the step-parent and natural parent of the stepchild existed at the time of the natural parent’s death, and
2. a parental relationship between the step-parent and stepchild has since been maintained.

An AFCA decision last year found the four adult stepchildren of the member remained as stepchildren despite their natural parent having died before the step-parent and despite them being financially independent of the step-parent.

The AFCA panel accepted that even though their stepmother had dementia the relationship was maintained and the stepmother continued to treat them as her stepchildren.

What is a parental relationship?

Is exchanging Christmas cards or the occasional phone call with a step-parent enough?

The Courts and AFCA look beyond sporadic contact to determine whether a genuine ‘relationship of affinity’ continued to exist between a step-parent and stepchild.

In 2024 AFCA upheld a decision by a superannuation trustee to distribute a deceased member’s superannuation death benefit between the member’s biological child and three stepchildren, finding one stepchild had maintained an ongoing relationship of affinity with the deceased. However, two other stepchildren were excluded because they no longer had a real, substantive relationship with the deceased and were therefore not considered eligible beneficiaries.[2]

While there is no bright-line test, occasional Christmas cards or infrequent phone calls alone are unlikely to be sufficient. Instead, the evidence should demonstrate a genuine, ongoing relationship in which the stepchild continues to be regarded and treated as part of the family.

As AFCA has acknowledged, proving the existence of such a relationship can be challenging, particularly where family relationships have deteriorated over time or disputes arise following the payment of a significant superannuation death benefit.

So how do you evidence the relationship? While it is difficult to evidence visits, telephone calls and practical support for a step-parent with such things as groceries and doctor visits, keeping a record of family gatherings, letters and emails can be helpful. Often individual statements from self-interested parties documenting the nature of the relationship may be all that is available. In the 2024 AFCA decision mentioned previously, the in-person attendance by the stepchildren at their step-parent’s funeral during COVID when attendance was severely restricted carried some weight towards establishing the nature of the parental relationship.

How do you create certainty?

The best way to create certainty is to put in place, and regularly review, a valid binding death benefit nomination.

If you are married and have stepchildren, and you have nominated your spouse as your beneficiary, it’s important to revisit that nomination if your spouse dies before you.

Often these nominations lapse every 3 years so it’s worthwhile checking. A nomination that has lapsed, whether because of time or because the beneficiary you have nominated has died, becomes non-binding and may carry little weight in a superannuation fund trustee’s decision.

A valid binding nomination ensures your superannuation death benefits are paid to your nominated eligible superannuation dependants or to your legal personal representative (your executor, where you have a Will) in accordance with your wishes. This provides you with certainty as to the recipient of these benefits rather than relying on the superannuation fund trustee to decide who should receive your benefit, particularly where complex family dynamics are involved.

It is also important to remember that every superannuation fund has its own governing rules around eligible beneficiaries and binding death benefit nominations. These rules can differ between funds, so they should always be checked.

Finally, people often assume their superannuation death benefits will automatically be distributed under their Will, but this is often not the case. If you have stepchildren, obtaining tailored estate planning advice is critical. An experienced estate planning lawyer can ensure your Will and binding death benefit nomination work together to ensure your wishes are carried out and reduce the risk of expensive disputes after your death.

By Karen Robinson, Senior Estate Planning Lawyer

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Andrew Godfrey

Equity Trustees has been appointed Responsible Entity for two new exchange-traded funds (ETFs) from Colchester Global Investors, marking the firm’s first ETF offerings in Australia and extending a long-standing partnership between the two organisations.

The launch of the Colchester Global Government Bond Complex ETF and Colchester Emerging Markets Bond Complex ETF comes as investor demand for both ETFs and fixed income strategies continues to grow, driven by higher bond yields, ongoing market uncertainty and an increased focus on portfolio diversification.

Andrew Godfrey, Executive General Manager of Corporate and Superannuation Trustee Services at Equity Trustees, said: “As investors continue to seek opportunities beyond traditional domestic fixed income markets, these ETFs seek to provide access to high-quality global sovereign bond strategies through a transparent and efficient listed structure. We are pleased to continue our partnership with Colchester and support the firm’s expansion into the Australian ETF market.”

The two new ETFs are structured to provide investors with access to Colchester’s specialist sovereign fixed income capabilities:

• Colchester Global Government Bond Complex ETF aims to achieve favourable income and capital returns from a globally diversified portfolio of primarily sovereign debt or debt-like securities and currencies.
• Colchester Emerging Markets Bond Complex ETF aims to generate favourable income and capital returns from a globally diversified portfolio of primarily sovereign emerging market debt or debt-like securities and currencies.

Keith Lloyd, Group CEO and Deputy CIO at Colchester Global Investors, said: “Colchester has always focused on doing one thing deliberately well, investing exclusively in global sovereign bonds and currencies. Our valuation-driven approach, grounded in assessments of real yields and real exchange rates, has been applied consistently for more than 25 years across both developed and emerging sovereign debt markets.”

For investors seeking greater portfolio defence during periods of economic uncertainty, the Colchester Global Government Bond Complex ETF (ASX: CISB) provides access to a diversified portfolio of global government bonds. For investors looking to diversify their sources of income and yield from corporate bonds, the Colchester Emerging Markets Bond Complex ETF (ASX: CIEM) provides exposure to local currency emerging market sovereign debt.

Australia has been an important market for Colchester for many years, and the launch of our first ETFs represents a natural extension of our long-term commitment to Australian investors.  The launch reflects growing demand for transparent, high-quality fixed income solutions and provides investors with efficient access to our disciplined investment approach in a listed structure. We are pleased to bring these capabilities to Australian investors in partnership with Equity Trustees.”

Colchester Global Investors is a privately owned investment management firm offering value oriented, global bond management services. Colchester has funds under management of approximately AU$43 billion across five core strategies being global sovereign bonds, local currency emerging market debt, global green bonds, global inflation-linked bonds and a global unconstrained alpha program. The firm manages assets for global institutions including Corporate and Public Pension Funds, Foundations, Endowments, Insurance and Sovereign Wealth clients. Colchester enjoys a long-standing history of managing money for many prestigious Australian and New Zealand institutions, with assets under management of approximately AU$9 billion.

Andrew Godfrey concluded: “Our partnership with Colchester Global Investors reflects a shared commitment to strong governance, disciplined risk management and delivering high-quality investment solutions to investors.”

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Suzie Willis

Equity Trustees, a sponsor of the upcoming 2026 Stand Up, Speak Out Australian Elder Abuse Conference, is calling for greater awareness of the need to act early to protect older Australians from financial abuse, which has become alarmingly widespread as Australia’s population ages.

National data shows around 1 in 6 older Australians experience some form of elder abuse each year^[1]. Financial abuse, where an older person has their funds improperly or illegally accessed, has become one of the most common types of elder abuse as more people rely on others to manage their affairs later in life.

“Sadly, elder abuse is often perpetrated by someone the victim knows, with around half of the cases involving family members,” said Suzie Willis, Senior Estates and Trust Solicitor at Equity Trustees, one of Australia’s oldest trustee companies.

“Financial abuse can start gradually and often goes unnoticed until significant damage has already been done. Once confidence is lost, it can be very difficult for someone to regain independence.”

Ms Willis is hosting a workshop at the Stand Up, Speak Out conference which runs from 27-29 July at the Gold Coast on practical early‑intervention and prevention strategies for safer decision‑making for older people. She says there are many risk factors, but all Australians can act early to put safeguards in place.

“Simple steps, such as appointing an enduring power of attorney and carefully selecting who will make decisions on your behalf can significantly reduce exposure to abuse,” Ms Willis said.

“It’s about more than having someone you trust. The strongest protection is when you have the right structures and oversight in place well before they are needed, including clear legal and financial arrangements.”

A professional trustee can help protect a lifetime of savings and ensure they support the beneficiary’s long-term wellbeing, independence and quality of life.

Trustees play a central role in determining how, when and why funds are released, safeguarding capital, but also funding essentials such as medical care, daily living support, housing, and social participation.

Watch for warning signs

Another key to preventing elder abuse is being able to identify the warning signs.

Social isolation is a risk factor, with people who are less connected to family, friends or their community being more vulnerable to exploitation.

Unexplained transactions, sudden changes in behaviour, new influences over decision-making, or withdrawal from regular activities should also be red flags.

Older Australian who are unhappy with the care they are receiving, or family and friends who have concerns should speak up if they feel something is wrong. These situations can raise complex social and legal issues but calling them out is essential and shows loved ones that help is at hand.

Support is available from community groups, lawyers, the police, and via the National Elder Abuse Helpline on 1800 353 374.

“Ultimately, protecting independence later in life comes down to planning early, staying connected and staying alert to the warning signs. We all have responsibility to care and advocate for older people, especially if they are unable or unwilling to speak for themselves,” Ms Willis said.

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Notes:
[1] Australian Institute of Health and Welfare, Family, domestic and sexual violence, 24 February 2026. Older people – Australian Institute of Health and Welfare

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The platform market, together with the aligned SMSF market ($1.8 trillion FUM), offers products and services that are most closely aligned to the Retirement Income Covenant (RIC). These superannuation market segments are the best positioned offers to achieve the individual objectives of members.

Equity Trustees also says in its submission that recent licence conditions introduced by APRA on trustees of platforms will lead to some narrowing of investment choice on platforms.

“Equity Trustees contends that this APRA initiative alone is sufficient to ensure the continued efficient, fair and honest functioning of the superannuation platform market and that further regulatory changes are not required – the market is already the most fit for purpose superannuation market segment.”

In its submission, Equity Trustees argued that it will not be feasible for the drafters of the legislation to precisely define between ‘platforms’ and ‘RSE Licensee of platforms’ given the offers provided by all superannuation funds are increasingly overlapping and will do so more in the future as more funds design offers demanded under the RIC (see diagram).

Equity Trustees also says in its submission to Treasury on ‘Enhancing Member Protections in the Superannuation System’ that there is no sound basis for banning the professional independent trustee model, which looks after the interests of 990,000 members and has grown from approximately $10 billion to $150 billion in ten years.

“The professional independent trustee model has been the fastest growing segment of the superannuation market in the last ten years and has been responsible for material innovation in the industry,” it says in the submission.

“The model has a solid record of delivering to members and has not suffered from the high profile systemic failures that have been prevalent in the vertically integrated in-house models – both commercial models and Not-For-Profit models.”

Equity Trustees says it strongly supports proposals by Treasury to reform Managed Investment Schemes (MISs) and their Responsible Entities (REs), as well as regulation of Lead generators.

It says that the most critical point of failure in the value chain regarding Shield Master Fund and First Guardian Master Fund was the two Responsible Entities.

“The misuse of scheme assets for purposes other than investment as disclosed to investors – as the liquidators’ reports have revealed – is clearly fraud or theft causing loss to the superannuation funds and their members.”

“We welcome the reform of MISs and their REs that was the subject of Treasury’s first consultation and ASIC’s consultation in respect of the Net Tangible Asset capital requirements for REs.

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Katrina Harper

When a child receives a life-changing compensation payout or trust, the decisions made in the months that follow can shape their financial security for life.

For many families, these moments come in the wake of trauma – a serious injury, medical negligence, or the loss of a parent – bringing not just emotional strain, but the responsibility of managing a significant sum of money intended to last a lifetime.

The role of a professional trustee is critical in ensuring these funds are not only protected but used in a way that supports a child’s long-term wellbeing, independence and quality of life.

A lifetime shaped by early decisions

Consider the case of a young child who received a substantial compensation payout following a medical incident that resulted in lifelong disability. With complex care needs and no clear way to predict future costs, the responsibility of managing those funds extended far beyond simple investment decisions.

Without the right structure in place, there is a real risk the funds could be mismanaged, depleted too quickly, or influenced by competing family interests.

“People often see a large sum of money and assume it will last forever,” said Katrina Harper, National Manager, Health & Personal Injury at Equity Trustees. “But when you factor in lifelong care, medical needs and inflation, that capital needs to be carefully managed to ensure it supports the beneficiary for decades.”

Trustees play a central role in determining how, when and why funds are released – decisions that directly impact the beneficiary’s quality of life.

Balancing protection with independence

While safeguarding capital is critical, a well-managed trust is about more than preservation. Trust structures can fund essential needs such as medical care, specialised equipment and daily living support, while also supporting education, housing and social participation.

Jonathan Guthrie-Jones, National Manager, Continuing Trusts at Equity Trustees said, “It’s about striking the right balance – ensuring the beneficiary is cared for, while also helping them build the skills and confidence to manage money over time.”

For minors, trustees often introduce a level of oversight that encourages better financial behaviours. Rather than receiving unrestricted access to funds, beneficiaries are guided to think about their spending decisions – a process that helps prepare them for eventual financial independence at vesting.

Navigating complex family dynamics

In many cases, trustees are also required to manage competing interests within families, particularly where significant sums of money are involved.

“Unfortunately, money can create tension, even in well-intentioned families,” Guthrie-Jones said. “An independent trustee provides a layer of protection, ensuring decisions are made in the best interests of the beneficiary.”

This includes implementing safeguards such as paying suppliers directly, verifying expenses, and working with medical professionals to ensure funds are used appropriately.

In one case, a testator (the person who made the will) left a sum of money to a grandchild, to be received at age 21. A separate trust was also established for the child’s mother, who had a history of poor financial management. To safeguard the grandchild’s inheritance from potential claims once the funds vested, Equity Trustees facilitated the purchase of a home in the grandchild’s name before they reached vesting age. This approach ensured the testator’s intentions were fulfilled, while protecting the inheritance from being accessed by the mother.

Funding life’s major milestones

One of the most important and complex aspects of trustee decision-making is determining how to fund major life milestones, like purchasing a house to live in.

For example, after losing their mother and with no father present, a young beneficiary was cared for by their grandparents, but they were unable to provide a stable living environment. Acting in the beneficiary’s best interests, Equity Trustees supported the purchase of a home before they took full control of their funds, ensuring the property was both appropriate for their needs and financially sustainable for the future.

“When considering large decisions like housing, we look at whether it’s in the beneficiary’s best interests both now and in the future,” Harper said. “We also assess affordability because every dollar spent today impacts the income available tomorrow.”

Planning for a successful transition

As beneficiaries approach adulthood, trustees play an important role in preparing them for the transition to financial independence.

This may include gradually involving them in financial discussions, encouraging responsible decision-making, and connecting them with professional financial advisers.

“A successful outcome is when a young person understands the value of what they’ve been given and uses it to support their future – whether that’s education, housing or long-term security,” Harper said.

A decision that lasts generations

With compensation and testamentary trusts often lasting many years the importance of early decisions cannot be overstated.

“The structure you put in place from day one sets the tone for everything that follows,” Guthrie-Jones said. “It’s about protecting the funds, but also about creating opportunities so that the beneficiary can live with dignity, independence and security.”

As families navigate some of life’s most challenging circumstances, the right trustee decision can make all the difference.

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Jodi Kennedy

Advances in medical science benefit everyone and this UNESCO World Health Day on 7 April, Equity Trustees is highlighting the important role structured giving plays in supporting Australia’s medical researchers and health care providers in delivering better health outcomes for all.

Charitable giving remains a vital source of funding in parts of the health sector – including medical research, disability services, healthcare access, mental health and wellbeing, and medical support services.

Equity Trustees facilitated $101.9 million in charitable grants and bequests directed to the for-purpose sector in 2025, with 39% of that funding going to support medical research and health initiatives.

“Philanthropic giving is a key element in the funding mix allowing medical researchers and health providers to continue their important work. We’re proud to support philanthropists who are making a meaningful difference to health outcomes in our community,” said Jodi Kennedy, General Manager of Philanthropy and Community Trustee Services at Equity Trustees.

One powerful example of this is the Equity Trustees Medical Research and Health Partnership Program, which combines the strength of 28 philanthropic trusts to help fuel breakthroughs in medical research. The Program has committed $7 million over five years to the Translational Research Institute Foundation, Monash Partners Academic Health Science Centre, and Sydney Health Partners, to support their groundbreaking medical research and advance the future of Australian healthcare. This adds to $10 million already committed to the Program since its establishment in 2017.

“As the trustee of more than 1200 philanthropic funds, Equity Trustees can align trusts with similar goals and help to coordinate their giving. This magnifies their impact, while continuing to honour the intent of every client who entrusts us with their legacy,” Ms Kennedy said.

“By facilitating funding through these partnerships with leading research organisations, we’re helping to accelerate medical discoveries and advancements in healthcare that can improve lives for generations to come.”

Ms Kennedy said ongoing philanthropic support through giving structures such as the philanthropic funds, trusts and foundations that contribute to the Equity Trustees Medical Research and Health Partnership Program delivers much greater impact than making one-off contributions.

“Establishing a private or public giving fund gives families the opportunity to dedicate charitable capital, receive immediate tax benefits, and provide ongoing support to eligible charities. This approach to giving is sustainable and creates enduring value for initiatives – whether that’s backing breakthroughs in medical science, or fostering developments in areas such as education, the environment, or community development,” Ms Kennedy said.

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Jodi Kennedy

As the world marks UNESCO’s International Women’s Day on 8 March, Equity Trustees is supporting the work of Australian Investing in Women (AIIW) to promote gender-wise giving.

Research by AIIW demonstrates how gender equality leads to safer societies, more productive economies and a fairer world for all of us. When we invest in women, communities thrive, economies strengthen and progress accelerates for everyone

Australia ranked 24^th in the world for gender equality but there are many critical areas in which charitable giving remains a vital source of funding to support women’s contributions, in areas such as scientific research, including medical fields in Australia where women comprise 52% of the research workforce[1].

“Philanthropic giving plays a key role in ensuring female scientists and researchers have the resources and opportunities they need to excel,: said Jodi Kennedy, General Manager of Philanthropy and Community Trustee Services at Equity Trustees. “We’re proud to support philanthropists who are making a meaningful difference in the scientific community.”

One standout example is the Dyson Bequest, managed by Equity Trustees. The Dyson Bequest Fellowship at the Walter & Eliza Hall Institute of Medical Research is a five-year commitment that invests directly in the development of women scientists and medical researchers.

This initiative not only supports individual career advancement but also contributes to improved health outcomes for communities everywhere.

The Dyson Bequest marked its 25^th year in 2025, with two generations of the family carrying on the legacy. Rose Gilder, daughter of Janie Dyson who founded the Bequest with her husband Bruce Dyson, works closely with John Dyson, nephew of Bruce and Janie Dyson, to lead the granting.

“We’ve met some extraordinary women doing life-changing work. I’d like to think we’ve played a small part in helping them get there,” Rose Gilder said, reflecting on the impact the Bequest is having on creating pathways for women in science.

Ms Kennedy said structured giving, like the Dyson Bequest, which is stewarded through the Equity Trustees Charitable Foundation, extends well beyond one-off donations.

“Giving funds, whether private or public funds, allow families to set aside charitable capital, gain immediate tax deductions, actively grow their funds and financially support eligible charities over the long term,” she said.

“This sustainable approach to philanthropy ensures a lasting impact – whether that’s supporting initiatives that advance gender equity in science, or making a difference in areas including education, the environment, or community development.”

Equity Trustees is responsible for distributing more than $100 million of philanthropic money to our community annually. Stewarding more than $360 million, the Equity Trustees Charitable Foundation empowers individuals, families and organisations across Australia to practice structured giving during their lifetime.

This International Women’s Day, take the next step towards lasting change – discover how structured giving can support gender equity and the causes closest to your heart here.

ENDS

MEDIA INQUIRIES

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Andrew Godfrey

Equity Trustees has been appointed Responsible Entity for the new River Capital High Conviction Fund, marking the beginning of an exciting new partnership with River Capital, a multi asset investment firm.

The Fund, available to institutional and wholesale investors directly, and to retail investors via platforms provides access to a focused portfolio of typically 15–20 high-quality listed companies, combined with the flexibility of daily liquidity. It aims for long-term capital growth by investing in the Investment Manager’s highest-conviction ideas, guided by a disciplined, valuation-driven approach and active engagement where appropriate. The Fund seeks a total return of RBA Cash Rate + 5% per annum, net of fees and including annual distributions.

Andrew Godfrey, Executive General Manager of Corporate and Superannuation Trustee Services at Equity Trustees, said: “We’re pleased to be partnering with River Capital to introduce this strategy to investors across Australia. The partnership reflects the growing appetite for high-conviction investment strategies, underpinned by the strength and experience of a trusted Responsible Entity. Our role is to provide a rigorous operational and regulatory framework, enabling River Capital to focus on what it does best – identifying and actively managing compelling investment opportunities.”

The Fund’s key features include a concentrated portfolio of listed equities, underpinned by active engagement with company management and boards where appropriate. This focused approach enables deeper insight into each holding, timely portfolio adjustments, and investment theses to be fully realised over time. It also positions the Fund to take advantage of marketing inefficiencies or mispricing while managing short-term market volatility. Material personal investments by the Principals, Investment Committee and investment team across River Capital Funds further supports the alignment of interests with investors.

Akshay Chopra, Portfolio Manager at River Capital, said: “At River, we approach risk differently; we see risk as the potential for permanent capital loss, the failure to compound capital, or missing on stated investment objectives. Our investment approach is to target opportunities, where intrinsic value materially exceeds market price and creates an asymmetric return profile. River Capital High Conviction Fund portfolio invests in our highest-conviction ideas – companies with mispriced value and cashflows, high quality growth businesses, and businesses trading below asset backing.”

Founded over 30 years ago, River Capital is a boutique investment manager specialising in Australian and New Zealand equities. The firm combines fundamental research, active engagement, and a valuation-driven approach to help clients achieve long-term investment outcomes.

Andrew Godfrey concluded: “As Responsible Entity, we are committed to maintaining the highest standards of governance and compliance, and we’re proud to support River Capital in bringing a high-quality, concentrated equity investment strategy to investors.”

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Andrew Godfrey

Equity Trustees has partnered with Blackwattle Investment Partners as Responsible Entity for the newly launched Blackwattle Equity Income Fund. This continues a partnership that has seen six funds brought to market since the investment manager commenced operations in 2023.

The Blackwattle Equity Income Fund offers access to an actively managed Australian equity income strategy focused on delivering consistent income across market cycles. Investing in listed Australian equities beyond traditional dividend-paying stocks, the strategy also utilises equity options to help generate regular income through a range of market conditions.

Andrew Godfrey, Executive General Manager of Corporate and Superannuation Trustee Services at Equity Trustees, said: “This partnership builds on our established relationship with Blackwattle and reflects the confidence we have in their investment capability and disciplined approach. We are pleased to support the launch of the Blackwattle Equity Income Fund and to continue working with a well established Australian fund manager that shares our commitment to strong governance, risk management and positive investor outcomes.”

The Fund is constructed with a strong focus on risk awareness and income resilience, using active portfolio management and options strategies to help moderate volatility and manage downside risk while maintaining exposure to Australian equity markets.

Michael Skinner the Managing Director and CIO at Blackwattle, said: “We believe that Australia is shifting from saving to spending, for the growing retiree market, the next decade is about consistent and secure income that you can live on.”
“Our Equity Income Fund is built to generate resilient income, not chase it – combining dividends, franking credits and option premium income to target 6-12% p.a. while managing downside risk.”
Rudi Minbatiwala, Portfolio Manager of the Fund, stated:

“The retirement ask is clear: high income that is sustainable, stable, and accessible. That’s the design brief behind our strategy.”
“Our Blackwattle Equity Income Strategy allows us to own high-quality companies first, then shape and enhance the outcome with options – aiming for steadier distributions at lower risk.”

Blackwattle Investment Partners is a new generation, Australian investment manager, that centres its investment philosophy on a quality approach to investment management. With over 225 years of combined experience and A$15 million in personal capital commitment, Blackwattle seeks to differentiate itself through investment excellence, transparency, and governance.

Andrew Godfrey concluded: “We look forward to continuing our partnership with Blackwattle as they expand their product offering, and to supporting investors through a structure that combines active management with strong oversight and governance.”

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Andrew Godfrey

Increased investor demand for predictable income streams at competitive yields has recently seen several listed debt offerings come to the Australian market.

New York US-based alternative investor, Stonepeak, has partnered with Equity Trustees as Note Trustee for its listed infrastructure debt note, the Stonepeak-Plus INFRA1 Note, which is issued by Stonepeak-Plus Infra Debt Limited and listed on the Australian Securities Exchange today under the ticker code ASX:SPPHA.

The Stonepeak listed note aims to provide Australian investors with a fixed term investment with monthly interest payments paid from the proceeds of a diversified portfolio of credit exposures underpinned by Stonepeak’s infrastructure investments. Stonepeak is the world’s largest independent infrastructure and real-assets alternatives manager, with more than US$115 billion in assets under management (AUD$176bn).

Andrew Godfrey, Executive General Manager of Corporate and Superannuation Trustee Services at Equity Trustees, said: “We are pleased to partner with Stonepeak on the launch of this listed note in the Australian market”.

He noted the listing comes as the APRA (Australian Prudential Regulation Authority) phases out hybrid banking notes (‘Additional Tier 1’ capital instruments) by 2032. Offerings such as Stonepeak’s may provide an alternative for income-focused investors seeking uncorrelated returns.

Mr Godfrey added: “Equity Trustees has been appointed as note trustee for four of the listed notes now available on the Australian Securities Exchange, including notes for Challenger, Dominion, MA Financial and now Stonepeak.”

Andrew Robertson, Senior Managing Director and Head of Australia and New Zealand Private Credit at Stonepeak, said: “The Stonepeak-Plus INFRA1 Note aims to provide Australian investors access to regular monthly income generated primarily through a curated portfolio of high-quality infrastructure debt assets. Debt will be sourced predominantly from critical infrastructure assets in the transportation and logistics, energy and energy transition, digital, and social infrastructure sectors in Australia, New Zealand and other markets.”

He added that Stonepeak had already secured over AUD$300 million in cornerstone commitments for the Stonepeak-Plus INFRA1 Note, reaching its target and reflecting strong initial demand.

Mr Robertson noted: “Infrastructure businesses have historically exhibited lower default rates compared to corporate debt, making infrastructure debt an especially powerful portfolio diversification tool for investors due to its stable and predictable nature. However, infrastructure debt has been historically challenging for retail investors to access. Stonepeak aims to solve this by providing the opportunity for a range of investors.”

Andrew Godfrey concluded: “We are proud to support Stonepeak in introducing this new listed structure, which expands investor access to diversified credit opportunities.”

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