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DomaCom loan funding, Entitlement Offer Underwriting and Board reorganisation

Mon, 19 Aug 2024 21:35:59 +0000

Steve James

DomaCom Limited (ASX:DCL) (‘DomaCom’ or ‘Company’), is pleased to announce that the Company has entered into definitive transaction documents with Bricklet Ltd (Bricklet) for a loan of $2.5 million (New Loan) and a reconfirmation of a $2.0m commitment to underwrite an Entitlement Offer (Underwriting Commitment). DomaCom is excited to announce a significant Board reorganisation as part of a strategy to set up for future growth.

Highlights

DomaCom has secured additional loan funding of $2.5 million.
DomaCom has received reconfirmation of a commitment to underwrite $2.0 million of a Proposed Entitlement Offer.
DomaCom undertakes Board reorganisation, as it repositions the business for future growth.
DomaCom secures strategic relationship with Central Real Capital

Bricklet is a venture within the Lakeba Group, a business builder dedicated to conceiving, creating, and commercialising FinTech, AI, Cybersecurity, and Proptech ventures. As part of the Lakeba Group, Bricklet benefits from the Group’s strategic investments and control over a portfolio of robust operating assets.

DomaCom obtains new loan; progresses a planned Capital Raise

The New Loan has an interest rate of 13% and a maturity date of 31 October 2025. The terms of the New Loan are set out in Appendix A. The New Loan is an extension of the Binding Term Sheet announced on 16 May 2024 under which $0.5m has already been drawn (Existing Loan). The New Loan and Existing Loan combined with the $1.5m drawn initial loan (Initial Loan) (ASX Announcements 4 March 2024) represent a total drawn facility of $4.5m (Facility). The amounts drawn under the New Loan and Existing Loan are agreed to be converted into Ordinary Shares of DomaCom at a price of $0.014 per share subject to compliance with ASX Listing Rules, the Corporations Act and shareholder approval. The conversion of the Existing Loan and the New Loan will result in the issue of 214,285,715 Ordinary Shares. The conversion is subject to shareholder approvals under the ASX Listing Rules and the Corporations Act.

The 53,571,429 Unlisted Options announced on 16 May 2024 have not yet been issued and will not be issued. Instead, a bonus share (Bonus Share) will be issued for each share subscribed under the conversion of the New Loan and Existing Loan. As a result of the agreement to issue Bonus Shares, the conversion of the Existing Loan and the New Loan will result in the issue of a further

214,285,715 Ordinary Shares. The issue of Bonus Shares will be subject to shareholder approvals under the ASX Listing Rules and the Corporations Act.

DomaCom is also currently considering an opportunity to undertake an Entitlement Offer. Further details will be released once the terms have been agreed. As announced in the ASX Announcement on 16 May 2024, Bricklet has committed to underwrite $2.0 million of the Entitlement Offer, if it proceeds. The underwriting would be subject to agreement of underwriting terms and would be subject to definitive agreements, any relevant shareholder approvals and not causing the breach of any ASX Listing Rule, ASIC Regulation or requirement of the Corporations Act. Bricklet has reconfirmed the commitment to underwrite $2.0 million of the Entitlement Offer.

The capital raise will place the Company in the best possible position to continue its development and expansion. As part of the recapitalisation process, DomaCom will apply to be readmitted to quotation by the ASX. The ASX may or may not allow readmission to quotation to occur.

Strategic alliance with Central Real Capital (CRC)

As an integral part of the company’s recapitalisation and the renewal of the business focus and growth, DomaCom recognised the need to align itself with substantial market participants in the financial services sector. Central Real is a business founded by Mr Tony Denny, which has a substantial presence in the private credit, property and financial services sectors, as well as a strong knowledge of private equity investment. The executive team of DomaCom and Central Real identified the multiple synergistic opportunities and are exploring ways to work together to take advantage of these opportunities. As a consequence, DomaCom is in the process of negotiating an agreement with CRC which is currently being documented whereby it is proposed that CRC will:

cooperate with DCL in the establishment of new sub-funds in the mortgage banking and private credit sector using the skills and experience of Central Real which DCL believes will to deliver strong recurrent underwritten returns to investors
cooperate with DCL in the establishment of a new fund to utilise Superannuation Equity Release in a model developed by Super Bond Australia Pty Ltd to facilitate the growth of residential purchase opportunitie
cooperate with DCL with the establishment of marquee property asset funds with solid lease-based returns and strong capital growth prospects
cooperate with DCL to explore the applications for monetisation of the secondary market opportunities available to DCL through its current AFSL licence permits and conditions
work with DCL to finalise terms whereby CRC will provide a partial underwriting of the proposed entitlement issue or capital raise to assist DCL in achieving its expansion goals
work with DCL to identify other potential underwriters and significant investors, and
provide DCL with additional skills and resources which reside in Central Real.

CRC will also assist DCL with its strategy to secure favourable terms for the conversion of current debt instruments to strengthen and improve the balance sheet of DCL.

The final agreement terms have yet to be executed, but it is expected that this will occur in the coming weeks, and a supplementary announcement will be made. The board is confident that the final terms will indeed enhance the summary included in this announcement.

Board renewal

DomaCom is able to announce significant changes to the Board of Directors. Chairman and non-executive Director Professor John Hewson AM has resigned from the Board, and Dr Alberto Basile, Mr Raymond Jourdan and Mr Vinuraj Koliyat have been appointed as non-Executive directors. Non-executive Director Mr Ross Landles has been appointed as Chairman. The changes are made with immediate effect.

John has had a significant positive impact on the business as Chairman during a period of transition where we have sought to further strengthen our compliance regime and corporate governance. John has left the Board for personal reasons. The role of Chairman has passed to Ross Landles who has extensive experience leading businesses within the financial service sector and ASX listed entities. Ross has developed a deep understanding of DomaCom since joining the Investment Committee on 13 June 2023. Ross has been a Non-Executive Director of DomaCom since 23 May 2024.

DomaCom is pleased to announce the appointment of Dr. Alberto Basile to its Board of Directors. Dr. Basile brings a wealth of experience and expertise in finance, risk, and compliance frameworks, making him an invaluable addition to the company. His ability to establish and maintain robust checks and controls will enhance DomaCom’s risk management and compliance capabilities, ensuring the company continues operating with the highest integrity and accountability standards. Alberto Basile will lead the new risk and compliance frameworks and act as Chairman of the Risk and Compliance Committee.

Dr. Basile’s career spans multiple continents, including Australia, China, and Europe, providing him with a diverse perspective and a deep understanding of global financial markets. With nine years of experience at Risk Oversight of the Interest Rate Derivative desk of National Australia Bank, Dr. Basile honed his skills in finance and risk management, laying a strong foundation for his subsequent roles. As Head of Finance and advisor to the Board of Panthera Group, he played a crucial role in overseeing a commercial property business with a portfolio of regional shopping centres in NSW. Furthermore, Dr. Basile has held various key positions such as AMLCTF Compliance Officer for the digital currency exchange Paid By Coins, Chief Risk Officer at Lakeba Group, and non-executive Director for a public company Bricklet and an ASX-listed company Gratifii (ASX:GTI), a digital loyalty platform previously known as Mobecom. He is also a Graduate of the Australian Institute of Company Directors and holds a PhD in Mathematics from the Australian National University, underscoring his commitment to excellence and continuous learning. DomaCom is confident that Dr. Basile’s appointment will strengthen the Board’s ability to navigate the complex regulatory landscape and drive the company’s strategic growth initiatives.

DomaCom is pleased to announce the appointment of Mr Ray Jourdan to its Board of Directors. Ray has a background in law and business with experience that spans property, financial services, tourism & hospitality, technology and humanitarian development. As a strong strategic and innovative thinker, Ray has been working in the property space for more than 20 years, both investing and developing. Ray has a strong interest and has invested in Proptech businesses and is passionate about making it easier for people to invest in property and buy homes.

Ray holds an LLB and practising certificate with the Law Society of NSW and is also a licensed real estate agent.

DomaCom is thrilled to welcome Mr Vinuraj Koliyat to our Board of Directors. Vinu is a results-driven, strategic executive with extensive experience in product innovation and technology leadership. He has a proven track record of transforming start-ups into thriving, revenue-generating enterprises. His expertise spans business analysis, technical operations, product management, and change management, making him a versatile leader with a keen ability to align company strategies with effective execution.

Vinu brings a wealth of experience in building successful technology businesses and delivering scalable solutions across diverse industry verticals. He has consistently driven growth and created value, leveraging his technical skills as a software engineer and his business acumen as an MBA graduate. Additionally, his certification from MIT in the implications of Artificial Intelligence for business strategy equips him to bridge the gap between emerging technologies and strategic applications, ensuring that companies can harness AI for competitive advantage. His core values including a strong commitment to customer-centricity, intellectual curiosity, and a passion for innovative thinking make him a dynamic addition to our board.

Beyond his technical and operational expertise, Vinu is known for his hands-on leadership, excelling in rallying and inspiring teams. His experience in developing global partner strategies and designing change management initiatives has added significant value to his previous ventures. We are confident that Vinu’s unique blend of skills and experience will play a crucial role in guiding DomaCom toward continued success and growth.

The remuneration of the 3 new Directors initially will be made partly through the issue of share options. DomaCom agrees to issue, subject to subsequent shareholder approval and compliance with ASX Listing Rules, Corporations Law and other applicable regulatory requirements, up to 2,615,289 unlisted options with a maturity date of 31 August 2026 and an exercise price of $zero to each of the 3 new Directors, being 7,845,867 options in total. If shareholder approval is not provided, the relevant Director Fees will be paid in cash within one month and future Director fees will be paid in cash. The terms of the Options are set out in Appendix B.

Repayment of Secured Convertible Notes

As part of the refinancing initiative, DomaCom has repaid $486,000 due under the Secured Convertible Notes transaction originating through Melbourne-based institution investor Thundering Herd (Thundering Herd Notes).

Conversion of trade creditor to loan

As part of the process of strengthening the financial position of the Company, the principal IT service provider has agreed to convert amounts due under the service agreement to an unsecured loan. The loan of $200,000 has interest payable of 13% pa paid on maturity and a maturity date of 1 January 2026. In addition DomaCom has agreed to issue, subject to subsequent shareholder approval, 14,285,715 unlisted Options to the Lender with a maturity date of 31 May 2025 and an exercise price of $0.014. The Terms of the Options are set out in Appendix C.

DomaCom CEO Steve James commented, “We are pleased that CRC and Bricklet continue to see the growth potential in the DomaCom business. This additional funding supplied by Bricklet will provide DomaCom with additional financial support as the Company executes the next stage of its growth strategy.

We would like to thank John Hewson for his commitment and drive over a during his time as Chairman. His knowledge and expertise have been invaluable as DomaCom has gone through a transitional period. We are sad to see him go and we wish him well in their future endeavours. We welcome Alberto, Ray and Vinu to the Board. We have an absolute commitment to continue to develop our compliance capabilities and look forward to making use of their significant experience to enable future growth in a very strongly controlled compliance environment.”

Bricklet and Lakeba Group Chairman Giuseppe Porcelli commented, “We are pleased about our extended collaboration with DomaCom. Our shared vision for the future of fractionalised investments drives exciting plans. The proposed board appointments will contribute expertise in Real Estate, Fintech, Governance, and Compliance. We are thrilled to join forces with Tony Denny and Central Real Capital as we embark on this exciting new chapter of the DomaCom journey.”

CRC Founder and CEO Tony Denny said, “I am happy to work with the board of DomaCom to change the face of DCL so it becomes well placed both financially and strategically to provide a product line to investors which have strong income and/or capital returns prospects, and which have a very different risk profile to those products that DCL presently offers to the investors. I am confident that we can assist DCL with our financial capacity and sector skills to enable all stakeholders to derive benefit. We have already identified 4 fund opportunities in marquee property assets and financial products that will drive substantial returns and income to investors and DCL alike.”

Ross Landles Chairman of DomaCom said, “Central Real is exactly the profile of company we are looking to align ourselves with. We need to have a different product profile available for investors and one which is reliable and sustainable. The products we have identified with Central Rela provide that reliability and this combined with additional financial support by CRC represent an outstanding opportunity for our company to undertake a transformative change. I look forward to working with Tony and his executive team whom I have come to know well to implement the plans.”

Matthew Fletcher, Managing Director of MSC Trustees commented, “As the Trustee for the DomaCom Fund (Fund), we are encouraged that DCL is pursuing a strategic alliance with CRC and we look forward to DCL and CRC reaching final terms which we expect will enhance the outlook for DCL considerably. The participation of the Lakeba Group expands the skills and experience that DCL can draw on as Manager of the Fund, and the combined vision of the major stakeholders will ultimately be of benefit to all investors in the Fund.”

This announcement has been authorised for release to the market by Company Secretary Philip Chard.

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Bill Moss AO, Frank Ganis and Dr Rehman join Salaam Finance

Mon, 01 Jul 2024 21:35:39 +0000

Salaam Finance is pleased to announce the appointment of two Non-Executive Directors and new Chair of its Advisory Board, effective from 1 July 2024.

Chairman of the home-finance business Dr John Hewson AM said, “It is my pleasure to welcome Dr Aamir Rehman and Mr Frank Ganis to the Salaam Finance Board along with Mr Bill Moss AO as Chair of the Advisory Board.”

Dr Rehman is Chair of Innate Capital Partners has been engaged in values-aligned investment for over twenty years, and has served the finance community as an investor, advisor, author, and educator. In addition, Dr. Rehman has served as a senior advisor on Islamic finance to the United Nations Development Programme. He has also consulted the World Bank Group on the impact of Islamic finance on development and financial inclusion.

With over 40 years of domestic and international experience in banking and finance, Mr Ganis has an extensive background and deep knowledge of financial services. He is recognised as a pioneer and influential industry leader in Australia. Prior to retirement from full time executive work in 2017, Mr Ganis spent 28 years at Macquarie Group including 17 years as an Executive Director. Mr Ganis was instrumental in the restructuring and transformation of the Australian mortgage industry through co-founding and establishing Macquarie Group’s mortgages and securitisation business in the early 1990s.

Bill Moss AO is a pioneer leader and highly regarded Australian businessman, philanthropist, and polymath with almost half a decade in business leadership roles. Mr Moss spent 23 years as a senior executive, Executive Director, and Group Head of Macquarie Banking and Real Estate Group, and was a member of Macquarie’s Executive Committee for 10 years. He is the Chairman and Founder of Boston Global’s Family Office.

“The experience, guidance and integrity that Aamir, Frank and Bill bring to our new specialised Islamic home-finance solution will further position us to meet the needs and aspirations of not only Muslims but to all Australians.

“I am looking forward to working with these gentleman and fellow Board members to provide a genuine, honest and transparent housing finance product at this very challenging time in the housing sector.” Dr John Hewson AM said.

A recent survey^[1] revealed 96% of existing Shariah-compliant superannuation customers were interested in a home finance product that adheres to Islamic finance principles. While 91% ranked Shariah compliance as the most important feature for a home-finance product.

Salaam, meaning ‘peace’ and ‘welcome’, symbolises a commitment to inclusivity, community values, and a forward-looking approach.

———-

[1] Results based on 709 Crescent Wealth Members who undertook an attitudinal online survey in November 2023

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Crescent Finance Launches Pioneering Real Estate Investment Funds

Tue, 04 May 2021 21:35:47 +0000

Sayd Farook

Islamic finance specialist Crescent Finance has launched two innovative investment funds that for the first time will give the clients of Australian financial planners, Self-Managed Super Funds and institutional investors access to a fully diversified portfolio of hundreds of Australian residential properties.

Chaired by economist and former Liberal Party leader Dr John Hewson, the company’s flagship Crescent Growth Fund will give investors access to leveraged capital appreciation of the value of residential real estate in a broad portfolio that spans Australia’s property markets.

Residential Australian real estate has returned an average of 10.1% p.a. over the past 25 years. The companion Crescent Finance Income Fund will give investors access to rent received from the growth fund’s residential properties leased out to tenants with targeted returns of 3% – 4.45% p.a.

The funds expect to raise an initial $100 million by the end of this year and finance more than $5 billion of property transactions over the next five years.

Crescent Finance Managing Director Dr Sayd Farook said that as well as giving investors unprecedented access to ‘safe as houses’ pooled residential real estate, his company sought to turn two problems into investment opportunities.

The first was to find a way to meet strong demand from institutional investors, especially those from Southeast Asia that wanted to invest in Australia’ residential property market in an Islamically compliant way. Crescent Finance will achieve this through the structure of both funds, which will be endorsed by world renowned scholars.

Because the funds will be Islamically compliant, this in turn will allow them to be a source of residential finance for hundreds of thousands of Australians who cannot participate in Australia’s property market due to the lack of authentic Islamic options that avoid the paying of interest, which is forbidden in Islam.

Dr Farook, who is the former Global Head of Islamic Capital markets for Thomson Reuters, said the authenticity of Crescent Finance’s approach to Islamic finance set it apart.

“Crescent Finance – unlike other Islamic Finance institutions, plans to provide authentic structures whereby they co-invest funds that are not simply borrowed from a conventional bank at an interest rate and wrapped in legalese to make them appear Islamically compliant.

“Such providers have been around for many years and in effect are mortgage broking firms with a twist and do not pass the basic smell test on ‘where did you get your money from?’ Crescent Finance plans to answer that question decisively and transparently,” he said.

The potential size of the market for Islamic residential finance in Australia is estimated to be almost $200 billion. In Australia 42% of Muslims are married and Australian Muslim women have 2.5 children on average and yet only 15% of Muslims own their own homes.

Dr Farook said Crescent Finance funds would be available for investment for everyone and not just Muslims and would be offered to anyone who wanted an equitable and ethical partnership-based approach to financing their homes.

“One of our first customers is not Muslim and wants to use the legal infrastructure to purchase properties for his children using a self-managed super fund,” he added.

Dr Hewson, a long-term supporter of Islamic Finance in Australia, said he was pleased to be able to help steer the launch of the two innovate financial products. “What excites me most is the equitable and social implications of the funds, allowing younger and previously excluded Australians to enter the residential property market, which has become increasingly unaffordable and inaccessible, given the stratospheric rise in property values relative to incomes.

“I also believe that these products will have significant appeal to a wide cross-section of Australians who are looking for ‘integrity and transparency’ in financial planning after the excesses and abuses identified by the Hayne Royal Commission,” Dr Hewson said.

Crescent Finance was established in 2020 to provide Islamically compliant residential finance. It is part of the Crescent Group which also includes the Crescent Wealth Islamic super fund which has a member base of more than 10,000 and manages approximately $300 million in funds, as well as not-for-profit entities the Crescent Institute and the Crescent Foundation.

Apart from Dr John Hewson, Crescent Finance’s board members include Miriam Silva, member of the board of CEDA, Keri Pratt, Non-Executive Director for several superannuation trustees and financial institutions, Professor Talal Yassine, Managing Director of Crescent Wealth, and Dr Farook, who until recently was Strategy and Innovation Advisor to the Office of the Vice President and Prime Minister of the UAE and Ruler of Dubai.

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Superannuation Summit: ‘Rebooting the system that is failing many Australians’

Sun, 13 Oct 2019 20:30:18 +0000

Bill Kelty

Australia’s newest independent think tank is celebrating its launch by arranging a star-studded discussion on the future viability of Australia’s superannuation system, just weeks before a government review body is to issue a public consultation paper on the topic.

The not-for-profit Crescent Think Tank, formed by a group of Australian and overseas academics, has confirmed former ACTU Secretary Bill Kelty, former Liberal Party leader John Hewson and former Macquarie University Vice-Chancellor Professor Di Yerbury to discuss the topic Superannuation: ‘Rebooting the system that is failing many Australians’ with over 200 business and civic leaders in Sydney on 24 October.

The invitation-only lunch and panel discussion at the Intercontinental Sydney will be moderated by multi-award winning journalist and television presenter Hugh Riminton. Bill Kelty is widely regarded as one of the fathers of Australia’s superannuation system, while Mr Hewson is one of Australia’s most experienced economists and post-politics has forged a career in sustainable development.

Emeritus Professor Di Yerbury has been a member of more than 20 government reviews in Australia and overseas and is the inaugural chair of the Crescent Think Tank, which has been formed to generate new ideas and dialogue on the issues of nation building, Australian infrastructure, socially responsible investment and Islamic finance.

Professor Talal Yassine OAM, Think Tank Board member, Adjunct at Western Sydney University and Honorary Professor at Australian National University, said the event was an ideal way to launch the Crescent Think Tank.

“A viable superannuation system is critical for the strength of the nation’s economy and the ability of future generations to retire in dignity. I expect our panel of distinguished thought leaders to quickly highlight the flaws and outdated aspects of our current system and give the three members of the retirement income review panel some valuable pointers as they get ready to start work. Keeping the status quo is not an option if Australia is to progress,” Professor Yassine said.

Mr Kelty said it was time for Australia’s politicians to once again make bold decisions, as the Hawke and Keating governments had. “Vested interests must be pushed aside as the superannuation guarantee is progressively increased to 12 percent. Superannuation funds backed by government policy should create new asset classes to address demands for infrastructure investment. These new investment classes should be partially backed by government guarantees and help fund critical infrastructure including public housing, water and roads. Super should be the backbone of Australia’s own belt and road initiative,” he said.

Professor Yerbury said the current super system favoured ‘the haves’ over ‘the have less and the have nots’. Women were also unfairly disadvantaged by an uneven playing field. “It is time our superannuation system returned to the centre and served middle Australia rather than trust fund families in the posher suburbs and the army of self-serving advisers that support them,” she said.

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Australia’s new sustainable finance initiative

Wed, 27 Mar 2019 20:45:42 +0000

Jacki Johnson

The leaders and senior executives of Australia’s major banks, superannuation funds, insurance companies, financial sector peak bodies, civil society and academia are coming together to set out a roadmap for realigning the finance sector to support greater social, environmental and economic outcomes for the country.

The Australian Sustainable Finance Initiative has today been unveiled – an unprecedented collaboration to help shape an Australian economy that prioritises human wellbeing, social equity and environmental protection, while underpinning financial system stability, in what it says is a ‘critical decade’ ahead.

Modelled on international best practice already seen in groups including the European Union’s High-Level Expert Group on Sustainable Finance and the UK’s Green Finance Taskforce, the Australian Sustainable Finance Initiative will be guided by a Steering Committee charged with developing a set of recommendations to enable the finance sector to contribute more systematically to the transition to a more resilient and sustainable economy.

IAG Group Executive Jacki Johnson, co-Chair of the Initiative, said: “The roadmap we create will include pathways, policy signals and frameworks that will better enable the financial services sector to contribute to delivering on international commitments, such as the Paris Agreement on Climate Change and the UN Sustainable Development Goals, while underpinning economic stability and prosperity for Australia.”

An Australian Sustainable Finance Roadmap will be delivered by the Steering Committee in 2020 with recommendations that will assist the financial services sector to:

Mobilise capital to deliver on national and global sustainable development and climate goals;
Enhance the sustainability, resilience and stability of the financial system by embedding sustainability, climate and human rights considerations into financial markets and products;
Ensure better informed financial decision making by enhancing disclosures and transparency on environmental, social and governance risks and opportunities; and
Deliver a financial system that meets community expectations around sustainability.

An Expression of Interest process in late 2018 called on experts active in sustainable finance to nominate to be part of the Steering Committee.

The following members and observers were appointed

Members

Anna Skarbek, CEO – ClimateWorks
Christina Tonkin, Managing Director Loans and Specialised Finance – Institutional – ANZ
Damien Walsh, Managing Director – Bank Australia
David Atkin, CEO – Cbus
Didier Van Not, General Manager Corporate and Institutional Banking – Westpac Banking Corporation
Emma Herd, CEO – Investor Group on Climate Change
Eric Williamson, Executive General Manager, Corporate Finance – National Australia Bank
Jacki Johnson (Co-Chair), Group Executive People, Performance and Reputation – IAG
John Hewson, Chairman – Business Council for Sustainable Development Australia
Mark Joiner, Chairperson – QBE Australia Pacific
Mark Senkevics, Managing Director Head Australia and New Zealand – Swiss Re
Matthew McAdam, Director Asia Pacific – Principles for Responsible Investment
Michael Thorpe, Managing Director Institutional Banking and Markets – Commonwealth Bank of Australia
Phil Vernon, Managing Director – Australian Ethical Investment
Richard Brandweiner, CEO – Pendal Group
Robynne Quiggin, Professor – University of Technology Sydney, Business School
Sarah Barker, Special Counsel – Minter Ellison
Simon O’Connor (Co-Chair), CEO – Responsible Investment Association Australasia

Observers

Geoff Summerhayes, Executive Board Member of APRA, Executive Committee Member of the International Association of Insurance Supervisors and Chair of the Sustainable Insurance Forum.
Eric Usher, Head of the UN Environment Program Finance Initiative, Economy Division, UN Environment

Simon O’Connor, Initiative Co-Chair and CEO of the Responsible Investment Association Australasia (RIAA), says “Issues such as climate change and human rights have become material to business and the financial services community. Climate change was recently described by the Deputy Governor of the Reserve Bank of Australia as a ‘systemic risk’ to the stability of our economy, and APRA emphasised last week that climate risks are ‘material, foreseeable and actionable now’ ”.

“The financial services sector is both exposed to those risks, as well as having an essential role in funding and underwriting a future Australia, providing the capital necessary to deliver on sustainable development and climate-related commitments. Through a greater alignment between the financial services sector and these sustainability goals, the sector can both deliver for Australians while building a better, more stable and sustainable financial system.”

“This unique and high-level collaboration will set out a roadmap for achieving this goal and shows the willingness of the financial services sector to step up and play an active role in building a more sustainable and resilient economy for all Australians,” said Mr O’Connor.

Jacki Johnson says “a sustainable and resilient economy is a necessity, not an option, and is the foundation for ensuring Australia’s prosperity throughout the 21st century.”

“As we approach 2020, we are rapidly entering a critical decade for managing climate change and other risks,” said Ms Johnson.

“Australia has made a number of commitments to international targets. Achieving these goals extends beyond social or environmental objectives – it’s an economic and financial necessity. Our economy simply cannot prosper in an environment of ever-increasing severe weather events and the subsequent broader impacts these will have.”

“Delivering on these goals requires not just government policy and commitment, but business and finance leadership. Achieving these goals presents a sizeable economic and social opportunity.”

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Investors demand more ethical solutions

Wed, 26 Apr 2017 21:50:48 +0000

Alex Vynokur

Speaking at a media briefing event in Sydney yesterday, BetaShares Managing Director Alex Vynokur and Dr John Hewson, Chairman of Asset Owners Disclosure Project, discussed the increased recognition from investors that there is a financial risk involved in climate change and why ethical investments are an attractive solution.

Investors increasingly demand ethical investing options

“When we spoke to advisers and investors about ethical investing, climate change was the largest consideration for many investors, reflecting the growing awareness of the financial risk involved in climate change. This is why our Global Ethical ETF, ETHI starts with a screen that ensures it only tracks companies that can be classed as climate change leaders,” Mr Vynokur said.

“The strong performance of the ethical investing sector has been another factor driving demand. If you consider the push from consumers to support ethical companies, it’s not surprising this flows through to the bottom line, driving superior performance and better equity market returns.

“The natural sector bias of ethical indices has also sheltered the sector from the downturn associated with the end of the resources boom.”

Today’s briefing event follows on from the launch of Australia’s first global ethical equities ETF, BetaShares Global Sustainability Leaders ETF (ASX: ETHI), which uses a broad set of ethical eligibility screens to provide investors with access to a portfolio of the world’s leading sustainable and ethical companies in one simple trade.

ETHI invests in 100 large global stocks from developed market countries (excluding Australia) that are climate change leaders. To be defined as a leader, a company must be 60% more carbon efficient than the average for the company’s industry.

In addition, ETHI uses a broad set of ethical eligibility screens to remove companies that have exposure to fossil fuels, gambling, tobacco, armaments, human rights concerns and other activities deemed inconsistent with responsible investment best practice.

“Ultimately, Australians are increasingly using ethical investment options as they realise the impact their money can have on promoting positive environmental and social outcomes. ETHI is a transparent, cost-effective and highly liquid tool that allows them to invest in line with their beliefs,” Mr Vynokur concluded.

Asset owners cannot ignore financial risk

The Asset Owners Disclosure Project idea was born nine years ago when it became clear the government was failing to act on climate change. It operates on the assumption that important, climate-related decisions will be driven from the investment community and measures how the top 500 asset owners in the world are managing climate risk.

“Investors are increasingly looking for ethical and sustainable investments. The Australian Prudential Regulation Authority’s warning that climate change could threaten the entire financial system, encouraging institutional investors to look carefully at the climate risk their assets are exposed to, was a significant turning point in the investment industry,” Dr Hewson said.

“The Asset Owners Disclosure Project has always advocated that asset owners have a fiduciary obligation to manage the financial risk posed by climate change and it is pleasing to see that APRA has now embraced this view as well.”

Of the $45 trillion worth of assets these 500 asset owners represent, 8-9 years ago only 2% of their investments could be classed as low carbon, compared to 55% of investments that were directly climate exposed. Today, over half of these companies will now have a climate change risk management plan in place.

“This state of play when the Project started represented a 55-2 punt against the impact of climate change. It’s been great to see this transform over time, as asset owners realise they can’t ignore the financial risk associated with climate change,” Dr Hewson added.

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Shartru Wealth opens first office in Newcastle

Thu, 15 Nov 2012 20:37:23 +0000

Newly formed financial advisory group, Shartru Wealth Management, is pleased to announce the official launch of its first office, located in Newcastle.

The office will be opened in conjunction with local accounting firm, Emerge Business Advisory, which can trace its history back to 1963.

The advisory firm is part of the Shartru Capital Group, a privately owned, Australian boutique investment and advisory firm established in 2009.

The board of Shartru Wealth includes respected economist and former leader of the federal Liberal Party, Dr John Hewson. CEO of the group is Newcastle resident and former Director of Centre Capital, Robert Coyte. Other board members include property and investment experts Linden Toll and Andrew Meakin, both of whom have been working in financial services for more than 20 years.

Mr Coyte said he was extremely pleased to be launching the firm in his home town and that the experience of the board would help ensure clients needs were at the forefront of all decisions by the Group.

“We understand that with five years of tough times in investment markets and now, sweeping government changes on how financial advice can be delivered, many people are feeling bewildered and frightened about just how they will fund their retirement. Additionally, investors need confidence that any decision or recommendation from their advisor, is made to further their own financial wellbeing – rather than that or their advisor or dealer group.

“I feel extremely fortunate to have found a team of such experienced and dedicated individuals, who I believe will add considerable value to our clients, both locally and further afield. We are committed to developing long term relationships with our clients and will work with them to continually enhance their overall financial welfare.”

Dr Hewson said he did not believe the role of sound financial advice could be underplayed when thinking about the financial wellbeing of the entire community.

“In my opinion, the difficult economic and political landscape that has dominated Australia in recent years, is set to continue. This means, there is no quick fix for investors who want to create a more comfortable financial future. Five or ten years ago, investing in property or buying shares were seemingly failsafe ways to build future wealth. Those days have passed, so finding reliable advice that meets your specific circumstances and build and protects wealth, is essential.

I am very pleased to be working with the board to grow this dealer group and we look forward to making further exciting announcements in the coming weeks.”

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Equiti Capital appoints Honourable Dr John Hewson AM to Board

Mon, 15 Aug 2011 21:35:13 +0000

Property fund manager Equiti Capital Limited has appointed former Federal MP and economic and financial expert Dr John Hewson AM to the position of Chairman of its Board.

Executive Director, Equiti Capital, Linden Toll welcomed Dr Hewson and said the appointment was an important step, one that will assist the company grow and execute its long-term business strategy.

“Dr Hewson is a very highly experienced economic, business and finance specialist and we are delighted to have him join us as Chairman,” he said. “Not only is John a highly regarded economic strategist, he has significant networks across business, government and financial services, which we believe will help us build our business over the coming years.”

Equiti Capital is a property funds management business and part of the Equiti Group. Equiti Capital launched its flagship fund, the Equiti U.S. Multifamily Property Fund earlier this year. Mr Toll said Equiti Capital is currently in the final stages of securing its first US multifamily propertyinvestment and that further details of this investment would be announced shortly.

Dr Hewson has worked as an economist for the Australian Treasury (Census and Statistics), the Reserve Bank of Australia, the International Monetary Fund, the UN, and as an advisor to two successive Federal Treasurers and the Prime Minister. His academic career included 11 years as the Professor of Economics, four years as Head of the School of Economics at the University of New South Wales, and two years as Dean, Macquarie Graduate School of Management and Professor of Management at Macquarie University.

Dr Hewson’s political career spanned eight years as the member for Wentworth in the Federal Parliament. He was Shadow Finance Minister, Shadow Treasurer and Shadow Minister for Industry and Commerce and Leader of the Liberal Party and Leader of the Federal Opposition for four years.

Dr Hewson’s business career has included roles as a founding Executive Director of Macquarie Bank, a Trustee of the IBM Superannuation Fund, Chairman, ABN AMRO Australia and Member of its Advisory Council, and as a Director/Chairman of a host of public and private companies. Dr Hewson also chairs two charities, Osteoporosis Australia and KidsXpress. He also serves as Chairman of the Investment Advisory Committee of the Australian Olympic Foundation, and is a Member of the Trilateral Commission.

Dr Hewson is also employed as a Commentator by Sky News, comments widely on TV and radio, and writes a regular column in the Australian Financial Review.

Dr Hewson said he was very pleased to join the Board of Equiti Capital. “Equiti Capital is a young business, but one that I believe shows significant potential. I think the US opportunities on which Equiti is currently focused, represents one of the strongest investment opportunities in today’s markets. I am very pleased to be part of the future of this business,” he said.

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