Harvey Kalman

Equity Trustees (EQT) and its investment manager partner Dundas Global Investors (Dundas) have made the EQT Dundas Global Equity Fund available on the mFund Settlement Service, bringing the number of co-branded funds distributed through Equity Trustees to 15.

The mFund Settlement Service is an ASX initiative that allows investors to buy and sell units in selected unlisted managed funds (mFund), through a process similar to investing in shares.  They can be bought and sold through their ASX stockbroker online, in person or through a financial adviser who uses a stockbroking service on their behalf.

EQT Dundas Global Equity Fund invests in 60-80 leading global companies from developed and emerging markets with a minimum stock capitation of US$1 billion. The objective of the fund is to invest in stocks with high real book value growth and growing dividend income to generate greater compound returns with lower volatility.

The fund aims to deliver rolling five-year returns in excess of 2.5 per cent of the capital return of the MSCI All Country World Index (ex Australia) before fees.

The mFund Settlement Service offers a number of advantages over the traditional way that investors use managed funds, and, in the case of self-managed superannuation funds (SMSFs) in particular, mFund can help with improving portfolio diversification, says Harvey Kalman, Head of Equity Trustees’ Corporate Trustee Services.

“Of the $500 billion in the SMSF pot, $200 billion is already invested through the ASX. But by investing only in ASX equities, SMSF’s have limited the diversification possibility of their funds,” Mr Kalman says.

“With the addition of the EQT Dundas Global Equity Fund investors now have access to all asset classes through Equity Trustees’ co-branded funds including: international equities, fixed interest, Australian equities including large cap, small companies, franchise, dividend income and concentrated as well as global and Australian listed property securities,” Mr Kalman says.

Equity Trustees was one of the first foundation members of the service and, together with its investment manager partners, Dundas, PIMCO, EQT, LaSalle and SG Hiscock & Company, offers a diversified range of funds through the service for retail investors.

Funds available on the service from Equity Trustees and its investment partner managers are:

Equity Trustees:  

• EQT Wholesale Flagship Fund
• EQT Australian Equity Income Fund

Dundas Global Investors:        

• EQT Dundas Global Equity Fund

PIMCO Australia:    

• PIMCO EQT Wholesale Global Credit Fund
• PIMCO EQT Wholesale Diversified Fixed Interest Fund
• PIMCO EQT Wholesale Global Bond Fund
• PIMCO EQT Wholesale Australian Bond Fund
• PIMCO EQT Wholesale Australian Focus Fund
• PIMCO EQT Wholesale Unconstrained Bond Fund

SG Hiscock & Company:    

• SGH 20 (Australian equities)
• SGH ICE (Australian equities)
• EQT SGH Wholesale Property Income Fund
• EQT SGH Wholesale Small Companies Fund

LaSalle Investment Management:

• EQT SGH LaSalle Global Listed Property Securities Trust
• EQT SGH LaSalle Global Property-Rich Trust

“The mFund settlement service can provide portfolio diversification quickly and easily as with even one transaction with one mFund, investors can gain access to a range of underlying investments and asset classes that may have otherwise been out of reach,” Mr Kalman concludes.

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Harvey Kalman

Equity Trustees is starting to see traction in transactions on the mFund Settlement Service, with applications for PIMCO and Armytage Private Funds being made through Baillieu Holst recently, says Mr Harvey Kalman, Equity Trustees’ Head of Corporate Fiduciary & Financial Services.

The mFund Settlement Service is an ASX initiative that allows investors to buy and sell units in selected unlisted managed funds (mFunds) through a process similar to investing in shares. These funds can be bought and sold through an ASX stockbroker online, in person or through a financial adviser who uses a stockbroking service on their behalf.

“Equity Trustees has successfully received applications on the mFund platform and looks forward to continued support for the service from brokers and investment managers alike,” Mr Kalman says.

Baillieu Holst Director of Institutional Sales, Mr Alex Hay, says as a foundation member of the mFund Settlement Service, the firm has now made a number of applications via the service and is pleased with the progress.

“Our clients like the convenience of tracking their managed fund investments using the same systems they use for shares and other securities, and the service has been well received,” Mr Hay says.

Equity Trustees was the first foundation member of the service and, together with its investment manager partners, EQT Asset Management, PIMCO, LaSalle and SG Hiscock & Company, offers a diversified range of funds through the service for retail investors.

Equity Trustees also acts as a Product Issuer Settlement Participant and was accredited by the ASX in May 2014.

There are 14 Funds available on the mFund Settlement Service from Equity Trustees and its investment partner managers, providing investors with access to all asset classes with the exception of international equities, which will be available soon. The funds are:

Equity Trustees Asset Management: 

• EQT Wholesale Flagship Fund
•  EQT Australian Equity Income Fund

PIMCO Australia:

• PIMCO EQT Wholesale Global Credit Fund
• PIMCO EQT Wholesale Diversified Fixed Interest Fund
• PIMCO EQT Wholesale Global Bond Fund
• PIMCO EQT Wholesale Australian Bond Fund
• PIMCO EQT Wholesale Australian Focus Fund
• PIMCO EQT Wholesale Global Unconstrained Bond Fund

SG Hiscock & Company:

• SGH20 (Australian equities)
•  SGH ICE (Australian equities)
• EQT SGH Wholesale Property Income Fund
• EQT SGH Wholesale Small Companies Fund

 LaSalle Investment Management :

• EQT SGH La Salle Global Listed Property Securities Trust
• EQT SGH LaSalle Global Property-Rich Trust

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Ms Elversson comes from a private practice and trustee company background and previously worked at National Australia Trustees within NAB Private Wealth. Here she focused on providing legal advice to high net worth individuals and their families regarding personal and corporate succession. She also has over eight years’ experience practicing as a Solicitor in the area of commercial law, specialising in wills and estate planning, and recently headed up the estate planning department of Matthews Folbigg Lawyers, a private practice in Parramatta.

“Catherine’s experience is broad – she has worked in Victoria, Queensland and New South Wales – which makes her perfectly suited to Equity Trustees national estate planning solution for external referrers,” Ms Hacker said.

Andrew Woods’ appointment sees him return to the Equity Trustees fold. He worked with the company from 1985 to 2001, initially as a trust officer and later as a wills and estate specialist, before taking up a role managing the Wills and Estates section of a large offshore law firm based in Bermuda

“Andrew’s work in Bermuda involved complicated wills and estate planning and administration for ultra high net worth indication, involving multiple jurisdictions,” Ms Hacker said.

Ms Elversson and Mr Woods will provide estate planning advice to clients, as well as in-house advice, on a wide range of matters including wills, estate planning, powers of attorney, estate administration, estate litigation and guardianship applications.

“Catherine and Andrew will be tremendous assets to the local and interstate estate planning teams, which have experienced a surging demand for their services in recent times,” Ms Hacker concluded.

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The mFund Settlement Service is an ASX initiative that allows investors to buy and sell units in selected unlisted managed funds (mFunds), through a process similar to investing in shares.  They can be bought and sold through their ASX stockbroker online, in person or through a financial adviser who uses a stockbroking service on their behalf.

Mr Harvey Kalman, head of EQT corporate fiduciary and financial services, said Equity Trustees was the first foundation member of the service and, together with its investment manager partners, EQT, PIMCO, LaSalle and SG Hiscock & Company, offers a diversified range of funds through the service for retail investors.

“In all EQT has 14 funds currently available on the mFund Settlement Service which means investors will now have access to all asset classes through mFund, with the exception of International Equities which will be available in June,” Mr Kalman says.

“Investors have access to fixed interest, Australian equities including large cap, small companies, franchise, dividend income and concentrated, and global and Australian listed property securities.”

Marcus Christoe from ASX said: “EQT as a foundation member brings a significant opportunity to provide investors and their advisers with access to a growing range of investment options in a way that is easier and more efficient; removing paper based applications and cumbersome identification procedure from the process. The service will provide investors already familiar with transacting shares using an ASX stockbroker access to unlisted managed funds.”

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George Boubouras

Investors will need to prepare for their retirement, regardless of the tough measures brought down in the Federal budget, and the focus on dividends is set to remain a feature of pre and post retirement planning, says Equity Trustees chief investment officer, George Boubouras.

“The current economic and political conditions only serve to drive additional investor demand for yield,” Mr Boubouras says.

“The increased emphasis on self reliance in retirement, combined with the ageing demographics and low interest rate environment, mean investors will continue to need a reliable income stream, in the form of franked dividends, from their equity portfolios.”

It is not only retirees who will benefit from a reliable source of income from growth assets.

“Exposure to growth assets, with consistent reinvestment, in the years and decades prior to retirement, will go a long way to meeting retirement income expectations,” Mr Boubouras says.

“The performance of the local equity market, with its tax paid dividends, combined with continued low interest rates, means Australian investors are already accustomed to targeting equity investments that pay a consistent dividend stream over time.

“Importantly, the Australian equity market has historically recorded a higher payout ratio compared to international equity markets, a fact which has rewarded those who invest in the local market.”

Mr Boubouras says an equity portfolio focused on yield will be trading off higher future earnings growth for a higher dividend yield.

“Currently equity market yields are 4.6 per cent. Investors who are focusing on the dividend yield, should be targeting an equity portfolio that is returning a yield of 7.5 per cent, once grossed up for franking credits.

“That is an attractive return for partially or fully self funded retirees.”

He says the sectors set to benefit from this search for yield include telcos, utilities, infrastructure, gaming, consumer staples, banks, diversified financials and listed property trusts.

Mr Boubouras says the tough budget will initially be contractionary, meaning it is less likely that the Reserve Bank of Australia (RBA) will raise interest rates in the near future. Additionally, the high Australian dollar will continue to place pressure on Australian companies.

“The current economic situation, combined with the measures brought down in the Federal budget, mean the RBA is likely to keep rates steady at least until 2015.

“This lower rate for longer outlook will ensure investors will continue to search for more yield elsewhere. Those ASX listed companies providing strong, sustainable yields, greater than the ASX200 over time, are set to benefit,” Mr Boubouras concludes.

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Tabitha Lovett

The R.M. Ansett Trust has announced grants totalling $300,000 to support children and young people in Victoria.

The charitable trust established by Sir Reginald Ansett has the objective of “assisting children to take their place in life”.  Grants have been awarded to a range of charities including SHINE for Kids, Scope (Vic) and Good Beginnings Australia.

The major grant of $100,000 to the Salvation Army Eastcare Network will fund a project to support young people who are homeless or at risk of homelessness, particularly young adults who are exiting out-of-home care and other statutory programs in Melbourne’s eastern suburbs.

“As trustee of the R.M. Ansett Trust, Equity Trustees received applications for many valuable projects and is very pleased to provide funds for seven projects this year,” said Tabitha Lovett, Head of Philanthropy.

“We hope that these grants will make a positive difference in the lives of many children and young people

“For example, SHINE for Kids Cooperative will extend its support for children who have parents in prison and Good Beginnings Australia will run an early learning program for disadvantaged children in Doveton in Melbourne’s east so that they have better language and literacy skills when starting school.”

The Ansett Trust particularly sought applications from charitable organisations working with children and youth in the Mornington Peninsula and Frankston areas because of Sir Reginald’s long association with the region.

Other grants went to:

• Living the Dream Foundation for a youth mentoring program for marginalised youth in Frankston.
• TaskForce Community Agency for a Trade Try-Outs program for disadvantaged young people to complete skills-based training.
• Scope (Vic) Limited for its GoKids program that provides specialist advice and therapy for children with cerebral palsy who are unable to walk unassisted.
• The Advisory Council for Children with Impaired Hearing (Taralye) for speech pathology assessment services to culturally and linguistic diverse (CALD) families in Melbourne’s northern and western suburbs who have a young child with hearing loss.

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Robyn Burns

Listed financial services organisation Equity Trustees Limited (EQT) has agreed to acquire 100 per cent of ANZ Trustees (ANZT) for $150 million. The acquisition will be funded by an equity raising and will further enhance EQT’s position as a leading provider of trustee, investment and administration services.

The acquisition will bring a significant increase in earnings to EQT, an opportunity to further develop the company’s existing growth strategies and will see total funds under management and administration increase to approximately $40 billion. After the completion of the integration period of approximately 18 months, during which the projected integration costs will be expensed, it is expected that the acquisition will deliver at least $4 million of synergies (pre-tax).

Equity Trustees Chairman, Mr Tony Killen, said EQT had been reviewing acquisition opportunities for some time. ANZT was by far the highest quality opportunity the company had come across.

EQT and ANZ have entered into a strategic relationship for an initial period of five years, with the potential for renewal for a further five years. It is anticipated that this will provide benefits for each party: ANZ will refer clients to EQT for the provision of specialised trustee services and will work with EQT to develop a suite of banking solutions that can be offered to their traditional trustee clients. In addition, ANZ and EQT have agreed to explore other areas of mutual interest such as the development of solutions to meet the needs of ANZ clients who need access to aged care services.

“Equity Trustees and ANZT have similar histories and both share a commitment to long-term relationships. In addition to both businesses being headquartered in Melbourne, synergies already exist between the two businesses in relation to philanthropy and trust operations,” Mr Killen said.

“The two businesses combined will constitute Australia’s largest independent ASX listed company with a dedicated trustee services focus.

Equity Trustees Managing Director, Mr Robin Burns said the transition for ANZT’s clients will be seamless, as the services offered by ANZ Trustees are also among the suite of services offered by EQT.

“Approximately 60 employees will join EQT in the next few months. They will be welcomed into an organisation that will allow them to continue to provide their valued services in a business that shares the same focus and commitment to clients,” Mr Burns said.

Mr Burns said, “We will be undertaking a fully underwritten equity raising programme over the next few weeks to finance the acquisition. I am confident that it will be well supported by current shareholders and new investors. The focus for the business over the next 18 months will be to integrate the ANZT business into the existing operation, as well as continue the organic growth and development projects already under way”.

The acquisition of ANZT significantly increases EQT’s scale and reach and materially improves our ability to compete and to provide quality trustee and other services in today’s complex and ever-changing financial environment,” Mr Killen concluded.

Listed financial services organisation Equity Trustees Limited (EQT) has agreed to acquire 100 per cent of ANZ Trustees (ANZT) for $150 million. The acquisition will be funded by an equity raising and will further enhance EQT’s position as a leading provider of trustee, investment and administration services.

The acquisition will bring a significant increase in earnings to EQT, an opportunity to further develop the company’s existing growth strategies and will see total funds under management and administration increase to approximately $40 billion. After the completion of the integration period of approximately 18 months, during which the projected integration costs will be expensed, it is expected that the acquisition will deliver at least $4 million of synergies (pre-tax).

Equity Trustees Chairman, Mr Tony Killen, said EQT had been reviewing acquisition opportunities for some time. ANZT was by far the highest quality opportunity the company had come across.

EQT and ANZ have entered into a strategic relationship for an initial period of five years, with the potential for renewal for a further five years. It is anticipated that this will provide benefits for each party: ANZ will refer clients to EQT for the provision of specialised trustee services and will work with EQT to develop a suite of banking solutions that can be offered to their traditional trustee clients. In addition, ANZ and EQT have agreed to explore other areas of mutual interest such as the development of solutions to meet the needs of ANZ clients who need access to aged care services.

“Equity Trustees and ANZT have similar histories and both share a commitment to long-term relationships. In addition to both businesses being headquartered in Melbourne, synergies already exist between the two businesses in relation to philanthropy and trust operations,” Mr Killen said.

“The two businesses combined will constitute Australia’s largest independent ASX listed company with a dedicated trustee services focus.

Equity Trustees Managing Director, Mr Robin Burns said the transition for ANZT’s clients will be seamless, as the services offered by ANZ Trustees are also among the suite of services offered by EQT.

“Approximately 60 employees will join EQT in the next few months. They will be welcomed into an organisation that will allow them to continue to provide their valued services in a business that shares the same focus and commitment to clients,” Mr Burns said.

Mr Burns said, “We will be undertaking a fully underwritten equity raising programme over the next few weeks to finance the acquisition. I am confident that it will be well supported by current shareholders and new investors. The focus for the business over the next 18 months will be to integrate the ANZT business into the existing operation, as well as continue the organic growth and development projects already under way”.

The acquisition of ANZT significantly increases EQT’s scale and reach and materially improves our ability to compete and to provide quality trustee and other services in today’s complex and ever-changing financial environment,” Mr Killen concluded.

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Equity trustees launches new global equities fund.

With growing interest in global equities from Australian investors, the Equity Trustees Dundas Global Equity Fund is now available for investment on the BT Wrap and Asgard platforms.

The fund, which takes a long-only position in 60 to 70 companies with a minimum market cap of US$1 billion, is managed by Edinburgh-based Dundas Global Investors and distributed in Australia by Equity Trustees Limited.

David Myers, national sales manager at Equity Trustees Funds Distribution, said over the past 12 months there has been a clear increase in the level of interest in global equities, from both financial advisers and their clients.

“As a result, we have arranged with BT Wrap and Asgard to open the Equity Trustees Dundas Global Equities Fund to retail investors to meet this growing demand.

“Advisers we have spoken with have told us they are seeking to position their clients’ portfolios to benefit from growth in markets such as the US and China, as well as ensuring they are not over-exposed to Australian equities in the current economic environment.

“With many investors still focused on income, the Equity Trustees Dundas Global Equity Fund can help create a stable, regular return for investors thanks to its focus on sustainable long-term dividend and book value growth.

“This approach is particularly attractive to investors who want exposure to global equities without taking on a high level of risk,” Mr Myers said.

Mr Alan McFarlane, senior partner and founder at Dundas Global Investors, said that investors in international equities will need to pick and choose carefully in 2014.

“We saw a strong rally in 2013 in developed market equities.

“As a result, equity markets are at valuation levels susceptible to a correction, and investors should ensure they are invested in companies with a strong and sustainable return on equity as well as cash generation and internal re-investments, in order to achieve future dividend and book value growth.

“Although inflation appears to offer little threat to markets, global equities would probably have a nasty reaction to further US rate rises, and this makes it even more important that any investments in global equities are made on the basis of fundamentals, rather than expectations of across-the-board market growth,” Mr McFarlane said.

As well as opening on the BT Wrap and Asgard platforms, the Equity Trustees Dundas Global Equity Fund has recently received a ‘Recommended’ rating from Lonsec*. It has an ‘A’ rating from van Eyk and an ‘Approved’ rating from Zenith**.

Dundas Global Investors was established in Edinburgh in August 2010. Dundas is an independent partnership with their own assets invested alongside clients. Dundas offer a single strategy to investors; global equities to achieve real capital and dividend growth. Dundas has seen significant growth last year, with the strategy receiving another mandate, for $240 million, from a large Australian superannuation fund in December last year, taking total funds under management to over $500 million.

The fund aims to exceed the MSCI All Country World Index (excluding Australia) by 2.5% p.a. over rolling five year periods after fees.

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Mr Buckley will work closely with Equity Trustees’ advice and personal services team and his responsibilities will include communicating with private clients as well as wealth management partners about Equity Trustees’ investment approaches and strategies. He is based in Melbourne and reports to George Boubouras, chief investment officer.

Mr Boubouras said that the continued expansion of Equity Trustees’ asset management business made it necessary to add an experienced portfolio manager to the team.

“James has a depth of experience that will be invaluable to our business as we continue to build our capabilities and approaches. We are very pleased to have attracted someone of James’s calibre,” Mr Boubouras said.

Mr Buckley has over 20 years’ experience in investments and financial services, working in Australia and the UK for both private clients and large institutions across asset classes. He joins Equity Trustees from Phillip Capital Australia where he was head of asset management, and he has also worked at NAB Private Wealth as an investment consultant. Prior to this, he held several senior roles at UBS Wealth Management in both Australia and the UK, including head of managed funds.

Mr Buckley holds a graduate diploma in applied finance and investment from the Securities Institute of Australia, and a bachelor of arts from Melbourne University. He holds an Investment Management Certificate (UK) and SFA Securities and Investment Certificate (UK).

Equity Trustees Limited (EQT) is a publicly listed company that provides a range of financial services to corporate and private clients. Its businesses include asset management, distribution, responsible entity appointments, private client wealth management, and corporate and personal superannuation.

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George Boubouras

Equity Trustees distributed more than $14.5 million last year to charities on behalf of the 206 charitable trusts it manages, following the directions and wishes of the trusts’ founders.

The charitable trusts managed by Equity Trustees total more than $490 million in value and are comprised of private ancillary funds, public ancillary funds (including the EQT Foundation) and testamentary or ‘will’ trusts, says Tabitha Lovett, head of philanthropy at Equity Trustees.

“The charitable trusts vary significantly in size and scope, and support a range of issues such as medical and scientific research, environmental protection, children’s charities, educational causes, animal welfare and disaster relief,” Ms Lovett says.

Of particular note in recent years is the increasing demand for funding from charities.

“The number of requests for grants from charities is on the rise, and the ratio of the funds requested against the income we have to distribute is around 8:1. This situation is increasing, not decreasing.

“While government and private sector funding for charities can ebb and flow, the proceeds from perpetual charitable trusts, such as those managed by Equity Trustees, continue to be distributed, regardless of the financial climate or government funding priorities.

“Equity Trustees’ focus is to ensure the trusts are properly administered and the income is distributed following directions and wishes of the benefactors, with prominence given to the trusts’ founders,” Ms Lovett says.

“Where the founders have left discretion with Equity Trustees to select the recipients to receive income each year, we strive to identify the strongest projects which will achieve genuine benefits for those in the community who are vulnerable and disadvantaged.”

Ms Lovett says the funds available for distribution each year depend upon the investment returns of the existing perpetual trusts and the number of new trusts that are set up.

“In the past 10 years many new philanthropic trusts have been established, as more and more people see the benefit of giving during their lifetime.

“This reflects people’s increasing interest in actively supporting the community sector and because of an increasing awareness of the various options available for establishing a perpetual foundation or legacy,” says Ms Lovett.

George Boubouras, Chief Investment Officer at Equity Trustees, says trusts’ assets are invested prudently with the objective of capital and income growth.

“These trusts are perpetual trusts, which means we can take a long term outlook with the investment decisions made. The aim is to return a consistent dividend yield that is greater than the broader equity market, to ensure funds are available for distribution each year.

“The aim is to deliver the best risk adjusted returns for investors with a focus on the dividend yield. The franking credit will continue to be an important component.

“The growth of dividend per share (DPS) was very strong over the past year and we continue to anticipate this trend in 2014.

“EQT is aiming for a sustainable dividend growth strategy which will provide greater income for distribution to charity,” Mr Boubouras says.

“Increasingly, we are finding clients want their financial planning considerations to include a structured and long-term approach to philanthropic giving, which will also provide tax advantages,” says Ms Lovett.

“It is not necessary to be wealthy to donate or to set up a charitable trust. Donations to the Equity Trustees Foundation can be made with as little as $1000.”

She says it is also possible to establish a perpetual charitable vehicle with a donation of around $20,000

“Establishing a perpetual charitable trust doesn’t need to be expensive or complicated and is a way to more meaningfully support a chosen charity, than ad hoc donations,” she says.

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