Select strengthens its partnership MGD Wealth.

The Select Asset Management Limited group (Select) and MGD Wealth Limited (MGD Wealth) have strengthened their partnership after the addition of a third portfolio, the LDI Connect 20 Portfolio, and achieving the milestone of $100m in total funds under management for the LDI Connect Portfolios, with the first 2 LDI Connect Portfolios, LDI Connect 3 and LDI Connect 7, having been launched in January 2012.

Select Fund Services is the responsible entity for the LDI Connect Portfolios while Select Investment Partners provides implemented portfolio services to MGD Wealth, the investment manager of the LDI Connect Portfolios through its Customised Portfolio Solutions (CPS).

Stephen Furness, Director and Head of Investment Advisory of MGD Wealth, said, “The launch of LDI Connect 20 to provide cash reserves to meet longer term liabilities than envisaged with LDI Connect 3 and 7 and along with the growth of the LDI Portfolios to over $100m in less than 2 years demonstrates the benefit of working with an experienced implemented portfolio consultant such as the Select group where they provide an “end to end” solution. It allows non-institutionally aligned wealth management businesses such as MGD Wealth to compete with the vertically integrated advisory businesses, adding value to our shareholders but more importantly to our clients by aligning them with our Liability Driven Investment process.”

David Yale, Executive Officer and Head of CPS for Select, said, “As with all of our CPS partners, we have structured the LDI Connect Portfolios so that MGD Wealth can offer their clients customised portfolios under their own brand and on their preferred administration platforms, that they control as investment manager, with Select Investment Partners providing them asset consulting and implemented portfolio services.”
The launch of MGD Wealth’s LDI Connect 20 Portfolio added to the earlier releases this year of CPS portfolios by DMG Financial Planning Pty Limited and Stonehouse Financial Services Pty Limited, advised by Select Investment Partners.

Mr Yale said, “We are currently in discussions with a number of other non-aligned dealer groups who are also looking for a new source of valuable and FoFA compliant revenue and/or extensive back office efficiencies with an institutional portfolio management capability that allows them to meet the best interest tests for their clients.” He said, “All of these potential CPS partners are looking for value and differentiation in their investment options for their clients beyond the use of a standard model portfolio implemented inefficiently by individual advisers.”

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Alternative investments find mainstream favour with sophisticated retail investors and advisers

Investors tipping into the alternative investments area.

A roundtable of leading Australian and international investors has today ratified growing interest in alternative investment instruments, saying the sophistication of providers has helped overcome historical obstacles.

Today’s ‘new breed’ investment managers – with a transparent focus on must-have liquidity and global capability – is helping to redefine alternatives as prized portfolio tools for retail investors and financial advisers.

“Australian retail investors lag international peers in respect of their asset allocation to alternatives,” said Winston Capital Partners Founding Partner and Managing Director, Andrew Fairweather.

“So we see strong upside potential to bring the best of local experience coupled with a global specialist. This enables us to bring an institutional quality offer with greater liquidity, transparency and access to investments and strategies not currently available to domestic investors,” he said.

The experts, drawn from specialist investment management group Select Investment Partners and its investment adviser Neuberger Berman addressed a special roundtable to map out the parameters for the ‘new alternatives’ approach.

“Select continued its journey to bring deep, institutional quality investment thinking and capability to retail investors earlier this year with the appointment of Neuberger Berman in an advisory role to the Select Alternatives Portfolio,” said Mr Fairweather.

“Today was a unique chance to hear first-hand perspectives from the investment professionals running the fund. It has helped to explain why Select Investment Partners believes alternative investing in Australia has reached a positive tipping point.”

Dominic McCormick, Select’s Chief Investment Officer, said: “Alternative investment offerings to retail investors today not only have to help diversify a portfolio but they also need to be highly liquid, transparent, value for cost and global in scope.  Select and Neuberger Berman are aiming to bring all these elements together in a high quality package”.

Mr Fairweather, whose firm distributes the Select Alternatives Portfolio, said the partnership of Select with Neuberger Berman is an exciting new partnership that brings unique opportunities to Australian investors.

“The Select approach has been to partner with a global brand in Neuberger Berman, while forging a best of breed investment committee including:

• Dominic McCormick, Chief Investment Officer and a founding partner of Select
• David Bell, current member of Select’s Investment Advisory Panel and consultant to Select;
• Thomas Good, former manager in debt and alternatives at the Future Fund, now an Investment Strategist with Select.”

“Select’s core principles of investor focus, investment rigour and original thinking continue to frame its activities in the Australian market,” he said.

“Neuberger Berman delivers Select Investment Partners significantly increased investment research, market leading technology and deep resources with a far broader reach for the Select Alternatives Portfolio.” Mr Fairweather concluded.

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The appointment of Neuberger Berman will enable Select to significantly enhance its investment and research resources, extending the depth and reach for the Select Alternatives Portfolio. Improved liquidity for the portfolio will be considered as part of the investment advisory mandate in order to better meet the needs of retail investors. 
 
Neuberger Berman, with a heritage dating back to 1939, has over 1,700 employees across 29 cities in 16 countries and manages over US$205 billion in equities, fixed income and alternative investments, with over US$17 billion in the latter.  It is a majority employee-controlled company, with more than 400 investment professionals, including over 60 in alternative investments, and currently manages assets for some of Australia’s major institutional investors. 
 
“Select and Neuberger Berman are committed to deliver an exceptional diversified alternatives portfolio for retail investors in Australia through the Select Alternatives Portfolio” said Select Chief Executive Officer, Brendan Foley.

“This relationship complements our recently announced distribution alliance with Winston Capital Partners which provides focused distribution resources for the Select Alternatives Portfolio, as well as other leading international asset managers wishing to access the Australian market, and separates this function from investment,” he said. 

“Our vision continues to be to leverage Select’s core principles of investor focus, investment rigour and original thinking in building an end-to-end, integrated investment management business.” 
 
Lucas Rooney, Managing Director of Neuberger Berman Australia, said, “We see this advisory partnership with Select as a great opportunity to broaden the accessibility of Neuberger Berman’s investment management and advisory capabilities beyond the institutional market in Australia.

“In partnering with Select, we will aim to help deliver a diversified alternatives portfolio that appeals to Select’s retail investors who are seeking diversification in their alternative investment allocation, while targeting a reasonable degree of liquidity and competitive pricing, often a challenge in alternative investments.”
 
Select Chief Investment Officer, Dominic McCormick, said: “In addition to the future contribution of Neuberger Berman Alternatives’ investment advisory services, the Select Alternatives Portfolio’s investment committee has been significantly boosted by the appointment to it of David Bell. David is well known in the industry, having been conferred a Lifetime Achievement Award by the Australian Hedge Funds Awards for his contribution to the hedge funds industry.”  
  
The Select Alternatives Portfolio was launched on 1 April 2004 in its current form as a convenient “all-in-one” solution which provides access to a diversified range of alternative investments.

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