‘Investing in uncertain times: Insights into university investment decision making’ explores how Australian universities are making and implementing investment decisions, where and how they seek advice, and their areas of focus over the short to mid-term.

The report draws on the responses provided by 10 universities across Australia who collectively hold more than $1 billion in assets under management, and utilise a range of funding structures including foundations, endowments, philanthropic trusts and bank debt.

Highlighting the diverse investment approaches the sector is taking, no two universities were identical when it came to how they were thinking about and implementing their investment strategies. All organisations were investing across a broad range of asset classes, including more complex alternative strategies such as unlisted property, unlisted infrastructure, absolute return strategies, private equity and private debt.

Perpetual Private Investment Director, Emily Barlow, said: “Over the last 10 years we’ve seen favourable economic tailwinds that have allowed most asset classes to perform strongly, which in turn has resulted in strong investment returns irrespective of what investment approach has been implemented.

“These returns are being challenged in this new high inflation, higher interest rate world. We believe the next ten years are going to look different to the last and so investment strategies may need to evolve to navigate the future landscape more successfully.”

When it comes to investment implementation, universities have been at the forefront of responsible investing in Australia, like other countries around the world; however, 4 of the 10 participants were still looking to develop their responsible investment strategies.

“This is a great reminder for all investors that responsible investing is not a set and forget strategy. As data improves and new solutions are launched, investors can and should be looking at how they improve their approaches.”

The report also highlighted the investment decision-making and advice framework, with all 10 universities employing both an internal and external approach to cover matters including manager selection, strategic asset allocation, investment implementation, alternative investing, cash management and responsible investing.

“Investment and finance teams at universities tend to be small, and it’s important to consider what expertise and decision making should be kept inhouse – which is vital – and what advice can be sought from outside the organisation.

“Naturally, as the investment landscape continues to evolve, finding this balance becomes even more important, particularly for more time intensive areas such as investment manager due diligence and investment implementation,” Ms Barlow said.

Read the report.

The post Volatile markets reshaping the way universities invest appeared first on AdviserVoice.

Andrew Baker

Perpetual Private has announced the appointment of two new Lead Partners, with Chemere Brown joining as Lead Partner, Victoria, for the group’s Private Client business, and Matthew Le Belenger joining as Lead Partner for the National Medical segment.

Chemere joins Perpetual with more than 18 years’ experience in the financial services industry, having previously held senior roles at IOOF, National Australia Bank and MLC.

Managing Partner Private Clients, Andrew Baker, recognised the significance of Chemere’s appointment for the business.

“Chemere is a great addition to our Private Clients team, which has continued to see strong growth over the past decade.

“Her leadership capabilities and industry experience, together with her clear commitment to providing quality outcomes for clients, ensures our Private Clients team in Victoria, as well as the broader Perpetual Private business, will continue to strengthen.”

The Private Clients team provide holistic financial and wealth management services to high-net-worth investors including investment management and advisory, accounting and tax advisory, philanthropy, trustee services and private banking.

Chemere started with the business on July 11 and will also be part of the Perpetual Private Leadership Team.

Mr Baker also announced the appointment of Matthew Le Belenger as Lead Partner, National Medical segment.

“Matt has a successful track record over close to 20 years in banking and finance having worked across a number of business groups at Westpac, BT Financial Group and MetLife in Australia and in the Middle East including Retail, Private Wealth, Advice, Group Insurance, Medical Insurance and Holistic Advice.

“Matt brings a wealth of experience and knowledge to the role and I have no doubt he will continue to help grow our medical segment,” said Mr Baker.

Perpetual has also announced Fotini Mastrogianni as the National Manager, Trustee Services. Fotini has held roles for more than 25 years across banking, professional and trustee services. The newly created role within Perpetual Private will focus on growing the Trusts, Estates and Lifestyle Assist segment within the business.

The post Perpetual Private announces new Lead Partners; creates new national role for Trustee Services appeared first on AdviserVoice.

Caitriona fay

Perpetual Private has launched an Australian Philanthropy Toolkit (the Toolkit) as part of its ongoing partnership with the Stanford Center on Philanthropy and Civil Society (Stanford PACS), based in California, USA.

Developed by Stanford PACS and adapted for the Australian market by Perpetual, the Toolkit is the first of its kind in Australia, providing a practical step-by-step resource designed to help individuals, families and advisers engage in thoughtful conversations, be effective in their charitable giving and anchor it around what matters most to them throughout their philanthropic journey.

Perpetual Private’s Managing Partner for Community & Social Investment, Caitriona Fay said: “Our work across the sector tells us that many individuals and families are interested in philanthropy, but don’t know where to start, or have a clear roadmap to ensure their giving will be impactful. The Toolkit offers a much needed resource that can support their journey and the development of effective philanthropy in Australia.”

Currently, Australia is experiencing the largest intergenerational wealth transfer in history^[1] and, despite the impact of the global pandemic, the desire and commitment of Australians to give remains strong^[2]. Over the last 12 months, 74% of Australians have given financially to charities and not-for-profits^[3].

“With the largest intergenerational transfer of wealth currently underway, the Toolkit provides philanthropists with a path forward. It encourages individuals and families to think about their values, find their focus and consider which giving vehicles and causes might suit their intentions. It also prompts them to work through any issues and opportunities such as family dynamics – that can include transferring wealth at the right time and in the right way, or establishing a family foundation where multiple generations can get involved,” added Ms Fay.

Erinn Andrews, Director of Philanthropy Research and Education at Stanford PACS said: “Advisers can also play a key role in helping their clients through this process. In the US, we saw rising expectations from clients for advisers to address philanthropic planning, while research from the US Trust revealed that these expectations are not being met. Less than half (45%) of clients were satisfied with the conversations and information their advisers were providing them about philanthropy^[4].

“As a result, and through leveraging our years of research about best practices and through focus groups and user testing with donors, wealth advisers, and philanthropy experts like Perpetual, we developed the Toolkit specifically to support advisers in guiding their clients through this process. The Toolkit is a practical, hands-on, easy-to-use resource that can be customised to meet the needs of any individual or family. It takes into consideration identified challenges of becoming an effective philanthropist and provides guidance around impact-orientated philanthropy.

“There isn’t a definitive way to be a philanthropist and we developed the Toolkit with that in mind. The process starts with a values-based goal, but the journey can take any number of directions. What matters is that you make informed, thoughtful decisions and continue learning along the way. This can be done as an individual, with your family and in collaboration with your adviser.”

Ms Fay commented, “Through our partnership with Stanford PACS, we’re delighted to provide this valuable resource to philanthropists in Australia. With this collaboration and knowledge sharing, we can empower philanthropists and their advisers to enhance the development of philanthropy across the country.”

Learn more about the Philanthropy Toolkit.

———

References:
[1] $2.3 trillion to be transferred in Australia by 2035 and ~$1 trillion to be transferred by 2025; Source: ‘Intergenerational Wealth Transfer Estimate 2015-2060 dataset’ Seer Data and Analytics
[2] McCrindle Research report ‘Australian Communities 2021’
[3] Ibid.
[4] The US Trust Study of the Philanthropic Conversation: Understanding Advisor Approaches & Client Expectations, July 2018; (US Trust is a subsidiary of Bank of America Private Bank)

The post Perpetual launches Australian Philanthropy Toolkit with Stanford appeared first on AdviserVoice.

Andrew Baker

New research from Perpetual reveals over half of Australians (56%) do not currently have a will in place and more than half of parents (53%) have not discussed their will and legacy with their children, despite the nation gearing up to face the largest intergenerational wealth transfer in history.

Perpetual recently surveyed 3,000 Australians to find out their attitudes towards wealth, inheritance and their families. The 2019 edition of the ‘What do you care about’ research uncovered Australians hoped their children would use their inheritance wisely (60%) and invest in their future (58%).

Rising cost of living, slow wage growth and a volatile property market paint a very different picture of wealth for Australians today than it did 20-30 years ago and makes the smooth transfer of wealth even more important for the next generation of Australians.

It is estimated 70% of families will lose their wealth by the second generation and 90% will lose it by the third. To offset these risks, it is important the stigmas around discussing wills and inheritance are broken down so that all parties can be prepared and can have a plan in place.

“Conversations about money can be awkward, and for many, discussing where and how your wealth will be distributed when you’re gone is no exception,” said Perpetual Private’s Andrew Baker, General Manager of Private Clients.

“As humans, we tend to shy away from discussing money amongst our families and friends. However, as we approach the largest intergenerational wealth transfer in history with more than half of Australians expecting to inherit, why have only just over a third discussed their wishes with their children?”

‘Free Range Families’ most open

The research also uncovered a unique cohort coined the ‘Free Range Families’, a group which values their families and interpersonal relationships over their financial situation. However, the research did reveal ‘Free Range Families’ are more comfortable talking about money, with 79% of ‘Free Range Families’ stating they are comfortable discussing money with their families, compared to 57% of Australians. ‘Free Range Families’ are also more comfortable discussing the future (82%), compared to Australians (57%).

With 59% of ‘Free Range Families’ in their fifties and above, they represent 14%of the total percentage surveyed. 64% of ‘Free Range Families’ are women, compared to 36% being men.

The report found attitudes to money are passed down through generations, with 62% of Australians and 69% of ‘Free Range Families’ stating their parents had some degree of influence towards their attitudes to money. When asked if they wished their parents had given them more help understanding financial matters, 32% of Australians said yes compared to 24% of ‘Free Range Families’.

Mr Baker urged families to normalise discussions around money and the future sooner rather than later in order to preserve wealth across generations.

“Baby boomers were fortunate enough to experience a period of supercharged wealth accumulation which has resulted in a stark contrast in levels of wealth between their generation compared to millennials and also a contrast in attitudes towards money.

“When it comes to wealth, what’s important to you may not necessarily be important to your children but discussing your wishes openly will minimise any possible surprises or misunderstandings when it comes time to distribute inheritance.

“As your life changes, it is important to continually review and adjust your will in the instance you go through a major life event.

“If you don’t know where to start, having a conversation with a financial adviser can be a good step in helping you work out a plan to discuss inheritance with your family, take control of your finances and give you peace of mind.”

The post Australians not yet prepared for largest intergenerational wealth transfer in history appeared first on AdviserVoice.

Mark Smith

Perpetual Limited (Perpetual) has announced the acquisition of Priority Life, a Melbourne-based specialist risk advisory business with a strong focus on medical practitioners, professionals and business owners.

Commenting on the acquisition, Mark Smith, Group Executive for Perpetual Private, said: “This acquisition demonstrates our commitment to growing our private client business through strengthening our proposition to high net worth clients including established wealthy, business owners, and medical specialists.

“As the industry continues to evolve, Perpetual Private is uniquely positioned to benefit from industry dislocation given its trusted brand and deep client relationships. As a business, we are looking to lead the market in wealth advisory, trustee and professional services in our targeted client segments. Our team is focused on accelerating growth through attracting high quality and strategically aligned advisers, with 15 new advisers signing on for FY20, as well as growth through inorganic opportunities.

“Priority Life fits well with our integrated professional services model, which facilitates deeper client engagement through a holistic approach, enabling clients to gain access to a team of specialists. This acquisition is aligned with our objectives as we are both focused on meeting the ever-changing needs of our clients. Priority Life’s success is founded on a deep understanding of the specific needs of their clients and complex insurance issues which is a valuable addition to our own capabilities. Our current and future clients will benefit from Priority Life’s highly focused expertise in life insurance solutions.”

Both Priority Life and Perpetual are committed to growing the business and expanding service offerings and capabilities to clients.

David Davidson, Managing Partner of Priority Life, said: “We are pleased our clients will have the opportunity to access Perpetual’s suite of service offerings including financial advice, investment management, retirement planning, and philanthropy.

“For Priority Life, it’s also about setting ourselves up for the future and ensuring the financial well-being and needs of our clients are taken care of.

Perpetual’s deep trustee heritage and financial advice client relationships across multiple generations are key strengths of the Perpetual Private business and clients are looking for a trusted brand and quality advice model now more than ever.”

The post Perpetual acquires Priority Life, strengthening its risk advisory capability for private clients appeared first on AdviserVoice.

Kyle Lidbury

Perpetual Private Investment Research Team (PPIRT) has for the second year running, won the category for Best Multi Strategy Fund at last week’s Hedge Funds Rock Australian Alternative Investments Awards for the Perpetual Income Opportunities Fund.

Perpetual Private Head of Investments Research, Kyle Lidbury, said “This is an outstanding achievement for the team to receive industry recognition, winning the award two years in a row.

“We’re proud to have received this accolade again though most importantly it’s our clients who are the winners. The Perpetual Income Opportunities Fund is a product for the times and continues to deliver its objectives in the current market environment.”

The Perpetual Growth and Income Opportunities Funds were designed for Perpetual Private’s high net worth and charitable client base. Developed in 2008, the funds help clients diversify their portfolios and provide strategic investment alternatives. The funds have been strongly supported, with the PPIRT now managing more than $1 billion in alternative strategies with the Growth and Income Opportunities Funds representing $615 million of this amount.

Mr Lidbury commented, “There are relatively few funds in Australia offering true alternative options to high net worth investors, particularly in infrastructure, private equity, unlisted property, private debt, cash and currency and absolute returns.

“For many investors, Multi Strategy funds can offer wider diversification of risk and the chance to generate income returns in market conditions that traditionally have been difficult for income investors.”

Perpetual Private has $14.8 billion in funds under advice (as at 30 June 2019) and has transformed its client offering to provide holistic advice in a professional services model.

The post Perpetual Private wins Best Multi Strategy Fund second year in a row appeared first on AdviserVoice.

Don’t ignore alternative assets, even during a bull run.

The bull run in Australia’s equity markets has been a magnet to investors with an appetite for simple, cheap and passive investment products, but this approach has led many to ignore the opportunities that alternative assets can deliver, including consistent income and growth.

Kyle Lidbury, Head of Investments Research of Perpetual Private, said that lack of accessibility and understanding of the value of alternative assets to achieving portfolio diversification has created barriers for investors seeking long term income and growth.

“Mainstream assets such as equity and fixed income remain attractive for investors because they are transparent and easy to buy and sell. However, the returns that can be generated from these assets are just the tip of the iceberg.

“We are in a unique environment of low interest rates and low volatility which is favouring growth stocks, but investors are missing out on diversifying their portfolio risk to buffer the impacts of a market correction that could see the tides on equities turn. This is where alternative assets such as infrastructure, private equity, property and absolute return investments can deliver returns that can diversify investors’ traditional market exposure and to help them achieve long-term objectives with less risk,” Mr Lidbury said.

Access to alternative assets has been historically difficult for many investors because of high fees, opacity of information, complexity of investments and the lack of true alternative options available.

In response to these barriers, the growing need to diversify traditional equity and fixed income risks, as well as the need for consistent income and long-term growth, Perpetual Private developed the Perpetual Income Opportunities Fund and the Perpetual Growth Opportunities Fund for its high net worth client base. Both Funds are celebrating 10-years in market this year and have a combined funds under management of $1 billion.

“Many high net worth clients appreciate the role these award winning Funds can play as part of a diversified portfolio which are recommended as part of a comprehensive professional financial plan. They are relatively unique funds in Australia, providing investors with diversification and exposure to alternative assets – a space typically only accessible to institutional investors.

“The assets within both Funds span private equity, unlisted property, both listed and unlisted infrastructure, private debt, cash and currency, and absolute returns. These are carefully managed by specialists with deep knowledge and expertise in managing often-illiquid assets to deliver consistent income and growth that can balance and diversify investors’ exposure to equities and bonds,” said Mr Lidbury.

Last week, Perpetual was recognised as Best Alternative Investment Manager of the Year and its Perpetual Income Opportunities Fund won Best Multi Strategy Fund at the annual Hedge Funds Rock Alternative Investments Awards.

The post Equity bull run leaves many over exposed and under-diversified appeared first on AdviserVoice.

Mr Lewis has a strong track record of delivering and implementing strategies for high net worth investors having had more than 20 years’ experience in the financial services industry. He will join Perpetual Private on Monday 17 August from ipac securities where he has spent the past 14 years as Head of Technical Services.

Mr Lewis will be responsible for leading the Strategic Advice team which delivers training and technical support to Perpetual Private’s team of nearly 50 advisers, continuously improving their technical competencies. This includes providing expert advice across tax, superannuation, insurance, succession planning, aged care, asset protection, estate planning and social security legislation, for the benefit of Perpetual Private’s advised clients.

Mr Lewis will also work closely with Perpetual Private’s network of alliance partners in the accounting and legal sectors, helping to develop their knowledge and understanding of the suite of strategic advice that Perpetual Private offers.

Perpetual Private’s General Manager of Advice Delivery, Marion Enander, said Mr Lewis’ appointment will further strengthen Perpetual’s delivery of quality advice to its client base.

“Colin is well-regarded in the industry and has extensive experience in delivering strategic advice. As a strong, technical expert, he will play an important role in Perpetual’s ongoing delivery of advice excellence by our advisers and the alliance partners we work with,” Ms Enander said.

“The Strategic Advice team manages complex topics and Colin’s ability to simplify these in an engaging way will be a real advantage for our advisers, high net worth clients and alliance partners.

“Delivering high quality advice is a key differentiator for Perpetual Private and Colin’s arrival will further strengthen our advice delivery.”

Mr Lewis has specialised in technical advice since 1987, holding senior regulatory, consulting and technical roles in the financial services industry. He holds a Bachelor of Business (Accounting) from the University of Technology, Sydney and a Diploma of Superannuation Management from Macquarie University. He has been an SMSF specialist adviser for the SMSF Association since 2006 and is a founding member of the ASFA 300 (SMSFs) unit committee.

The post Colin Lewis joins Perpetual Private as Head of Strategic Advice appeared first on AdviserVoice.

David Blunt and Deana Leong have been appointed as Investment Research Analysts within the 11 person team, which supports Perpetual Private’s broad investment research process, including capital markets research, asset allocation, multi-manager portfolios, alternative investment programs, as well as constructing model portfolios and the approved product list.

Perpetual Private’s Investment Research team has a combined experience of 95 years in the industry and is responsible for A$12.6bn in funds under advice(1). Nearly a quarter of the FUA(2) is in multi-manager funds which the team manages on behalf of clients. These funds provide Perpetual Private’s clients with access to investment opportunities across traditional and alternative asset classes in both public and private markets.

“Within Perpetual Private we are focused on providing financial solutions that meet the complex needs of our high net worth client base. We need experienced research analysts to identify the best investment strategies, across the breadth of the wholesale and institutional opportunity set,” Kyle Lidbury, Head of Investment Research, Perpetual Private said.

“At Perpetual Private, in addition to identifying best of breed managers in traditional asset classes, our team spends considerable time researching opportunities that can provide true diversification for our clients’ portfolios. Hiring two highly rated analysts such as David and Deana will further strengthen our offering. The team, in combination with our global asset consultant, Cambridge Associates, is able to leverage a significant amount of research capability for the benefit of clients.”

Mr Blunt and Ms Leong will research and evaluate investment strategies and contribute to the construction of investment portfolios that align with Perpetual Private’s ‘Protect and Grow’ investment philosophy.

Mr Blunt joins Perpetual Private from ANZ Global Wealth where he was an Investment Research Analyst covering global and Australian equity strategies, alternatives and real assets. Ms Leong transitioned from Perpetual Investments where she was an Investment Specialist, having previously covered Australian and international equity and property managers at Ibbotson.

Perpetual Private’s Investment Research team was restructured in June 2014, when Kyle Lidbury was appointed as Head of Investment Research and Theo Sofios was appointed Deputy Head and Portfolio Manager. The new team was focused to be more responsive to the evolving needs of its clients who were seeking more sophisticated investment solutions.

In May 2014 Perpetual Private launched the Implemented Portfolio Series, giving clients access to actively managed portfolios of global equities, Australian equities, fixed interest and listed property strategies. Since launch, the funds have accumulated more than A$1bn under management(3). The Implemented Portfolio Series leverages Perpetual Private’s scale by delivering a more efficient and cost effective way of investing, compared to model portfolios constructed with individual wholesale funds.

The post Perpetual Private makes two key hires in its Investment Research team appeared first on AdviserVoice.

Dermot Lindsay

Perpetual Private has announced a new partnership program for independent accountants, building on its extensive history with the accounting profession.

Perpetual has long partnered with accountants to support their needs and since 2010 has owned business consultancy and accounting provider Fordham.

The new program will offer accountants the opportunity to partner with trusted organisations to retain their independence and extend their advisory capabilities. It will also offer accountants a licensing solution ahead of the impending removal of the Accountants’ Exemption for advice on Self-Managed Super Funds (SMSFs).

Under the partnership program, Perpetual is pleased to announce a strategic partnership with boutique law firm The Fold Legal.

Perpetual State Manager Dermot Lindsay said the new partnership will offer accountants assistance to determine the right licence path, licence application support, guidance with policies and procedures, as well as training on the AFS regulatory requirements.

“SMSFs have become a significant driver of diversified revenue for accounting practices and a great opportunity exists for accountants, who have a well-earned reputation as trusted advisers, to broaden and strengthen their service offering – with the right support. The new program will facilitate partnerships for accountants to help them thrive in a changing environment,” Mr Lindsay said.

“We are pleased to join forces with The Fold to support accountants who want to maintain their independence and continue to grow despite legislative changes.”

“We are thrilled to partner with a law firm of such high calibre. The team has extensive knowledge of the financial services regulatory regime as well as specific expertise on the ongoing requirements accountants will face once licensed.

“The Fold have successfully prepared more than 400 AFS and ACL licence applications since 2002 and their knowledge of the licensing process and the regulatory approach is outstanding.”

Jaime Lumsden Kelly from The Fold said they were pleased to be working alongside one of Australia’s most trusted organisations to support Australian accountants.

“Together we are committed to supporting independent accountants to not only manage the upcoming licence changes with minimal disruption, but also to thrive in a post-exemption environment through the right tools and support.”

The post New partnership program to empower independent accountants appeared first on AdviserVoice.