Rohan Mead

Australian Unity has launched the Australian Unity Future of Healthcare Fund to generate long-term capital growth for investors and increase the wellbeing of all Australians by investing in the future healthcare needs of the community.

The first of its kind, the healthcare fund will invest across a range of sectors and asset classes including venture capital and private equity; domestic and international listed equities; and social infrastructure such as medical and health-related real estate.

Rohan Mead, Group Managing Director, Australian Unity, said Australian Unity has a distinguished track record in providing innovative health solutions to its customers and members.

“Australia needs purpose-driven investments that address our ageing population, the rise of chronic and non-communicable disease, disability, mental health, and the shortage of social and medical infrastructure”, he said.

“The Future of Healthcare Fund is a natural progression for Australian Unity. It builds on our past, brings together our unique capability, and will enhance the wellbeing of Australians through investment in preventative and remedial healthcare and health associated businesses and assets”, he said.

Joe Fernandes, Chief Investment Officer, Australian Unity Wealth & Capital Markets, said the Fund will draw on Australian Unity’s breadth of expertise and long established capability in the health sector.

“As an investment manager, we’re ideally placed to bring together Australian Unity’s experience and insights from its diversified businesses across private health insurance, healthcare, aged care, healthcare property, social infrastructure, funds management and venture capital”, he said.

Victor Windeyer, Portfolio Manager for the Fund said “the Fund will actively contribute to the future capacity of the healthcare sector through its investments which will benefit the wellbeing of Australians. A great example of the Fund’s impact on all Australians is the first investment it has agreed to make in Lumos Diagnostics – a medtech that helps healthcare professionals more accurately diagnose and manage medical conditions.”

“One of Lumos’ most exciting products is a test that tells doctors within 10 minutes if their patient has a viral or bacterial infection which can be used to help triage patients at the point of care and avoid unnecessary use of antibiotics.

“Lumos is an example of a company that could do well not only for investors in the Fund but also for improving community wellbeing and we look forward to investing in many more exciting healthcare initiatives over time”, said Mr Windeyer.

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Ms Kerr-Smith joined Australian Unity in 2017 as Group Executive, Finance & Strategy, where she has led the Group’s finance function and overseen the shaping and implementation of the Group’s strategic objectives. She has also led Australian Unity’s engagement with a range of market stakeholders to advance its capital markets, community value and social infrastructure agendas.

In announcing the appointment, Australian Unity’s Group Managing Director, Mr Rohan Mead said: “We look forward to Esther moving to the Wealth & Capital Markets CEO role. She has already demonstrated that she is a passionate leader with a deep capacity for value creation and impact. Esther will be a great asset to Australian Unity as we move into our next phase of growth, especially as we continue to pursue our social infrastructure agenda.”

Ms Kerr-Smith’s prior experience covers financial services, infrastructure and human services design and delivery. She was a senior executive with the National Disability Insurance Agency— leading the market stewardship and commissioning functions and has held senior roles at strategy consulting firm Boston Consulting Group and within Macquarie Group’s infrastructure division.

Mr Mann joined Australian Unity in 2012 and has held numerous senior roles within the Finance and Strategy function.  In 2015 as Group Treasurer, he oversaw the refinancing of the Group listed debt and was instrumental in issuing Australia’s first simple corporate bond.  Prior to this appointment, Mr Mann was the Deputy Head of Finance and Group Chief Financial Officer where he led the Group transformation program for the Finance function.

Mr Mann’s prior experience includes a decade in London, predominantly working on large scale integration and transformation programs with Merrill Lynch Investment Managers, Lloyds Banking Group and the Royal Bank of Scotland.

Announcing Mr Mann’s appointment, Mr Mead said: “Darren has played a significant role in shaping the Group’s finance function in the eight years he’s been with Australian Unity.  This appointment recognises Darren’s capability to steward the company’s finances and shape our strategic growth agenda. Darren is an adept leader and will continue to motivate the Group through its next growth phase.”

Ms Kerr-Smith’s appointment follows David Bryant’s resignation as CEO of W&CM earlier this year and Mr Mann’s appointment comes after the appointment of Ms Kerr-Smith to the role of CEO, Wealth and Capital Markets, with both appointments to take effect on 13 July 2020.

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Australian Unity to focus on “middle Australia”.

There is an increasing need for estate planning and trustee services for middle income Australians as the population ages and as issues such as dementia and blended families become more prevalent, says Rohan Mead, group managing director of Australian Unity.

“Historically, these kinds of services have only been available to the wealthy, with most trustee companies focusing on high net worth families; however Australian Unity has recently launched Australian Unity Trustees, a trustee company that will offer these services to all Australians,” Mr Mead said.

The services provided by Australian Unity Trustees include: estate planning; executor appointments and estate administration; financial attorney; financial and legal administration; and the establishment and management of personal, native title, community and charitable trusts.

The new trustee business forms part of Australian Unity’s Personal Financial Services group, which provides strategic financial advice, finance broking and risk broking. It is the first traditional trustee financial services licence issued this century, and the first issued since the establishment of a national licensing framework for traditional trustee activities.

The business will be led by Emma Sakellaris as general manager of Australian Unity Trustees and has established a presence across Australia.

“The services and solutions are intended to provide families with the necessary financial protection, support and peace of mind through difficult circumstances, as well as assisting with intergenerational wealth transfer and the establishment of structured giving to create a philanthropic legacy and connection to the community,” Mr Mead says.

“Our 175 year history as a mutual organisation dedicated to the financial and physical wellbeing of Australians means we are well positioned to provide this service – we already have the appropriate corporate structure and the requisite experience to operate as a fiduciary and act in our clients’ best interests.

“We see this as a natural fit for the business and a continuation of our focus on looking after the wellbeing of our members and clients,” he said.

Steve Davis, chief executive officer of Australian Unity Personal Financial Services (PFS), said the new business will assist clients’ to meet their long-term and changing needs.

“In the past, the focus of the financial advice community has been on the years immediately before and after retirement, ensuring clients have maximised their superannuation opportunities.

“The addition of estate planning and trustee services will make it easier for our advisers and accountants to fully address a complex area that has often been placed in the “too hard” basket by our industry.

“One of the other key differences in our service offering is that we are structured to work in partnership with other professional service providers such as financial advisers, accountants and lawyers. This partnership approach also helps deliver a great outcome for clients and their families who can continue to work with the professional they already trust.

“True to our values and structure as a mutual organisation, we believe we can make a significant difference to the lives of ‘middle income Australia’ and not just high net wealth individuals,” he said.

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The Group’s operating earnings were $34.6 million, up eight percent, a result that included substantial costs associated with responding to the federal government’s changes to private health insurance legislation. 

The Group’s profit after tax was $22.3 million, a reduction of 13 percent compared to the previous year and largely attributable to volatile investment markets and expenses incurred in relation to mergers and acquisitions. 

Result overview

• Revenues $1.12 billion, up 10.6%
• Operating earnings $34.6 million, up 7.8%
• Profit after tax $22.3 million, down 12.8%
• Members funds $449 million, up 15.7%
• Funds under management $12.2 billion, up 2.5%
• Funds under advice $2.0 billion, up 91%
• Health claims paid $535 million, up 12.7%
• Retirement Living development projects of $515 million 

Group Managing Director Rohan Mead said that the 2012 result was a creditable achievement in a year where the operating environment, both economic and regulatory, remained difficult. 

“While the external environment affected our overall result, the Group significantly expanded its operating base by joining with Big Sky Credit Union. The credit union business combined with the Lifeplan Australia Building Society to form the Big Sky Building Society, bringing more than 30,000 new members and customers into the Group,” Mr Mead said.  

At year end the Big Sky Building Society had assets of $655 million. 

“Another major growth contributor during the year was the healthcare business, with the corporate health fund, GU Health, growing policyholder numbers by 16.7 percent and the retail fund by 6.1 percent. Both businesses were well above the industry average growth rate (3.7 percent), for the second consecutive year. 

“We believe this growth should assist our businesses as they adjust to the as yet unknown and future impacts of the Government’s decision to impose a means test on the private health insurance rebate from 1 July 2012,” he said. 

Mr Mead said that during the year the company also made major acquisitions in the financial advisory and funds management businesses. He said that he was particularly pleased that, after some years of investment by the Group, the Personal Financial Services business began posting positive monthly financial contributions in the second half the year. 

Additionally, the Group’s preventative health and chronic disease management business, Remedy Healthcare, provided intervention and coaching to its 5000th patient and continued to strengthen the evidence base for its programs. The Retirement Living business kept village occupancy and residential aged care occupancy at 95 percent and 98 percent respectively. 

“These achievements are reflective of continuing progress on our ambition to become Australia’s leading wellbeing company. 

“The investments we made during the year demonstrate the depth of opportunity available to Australian Unity to pursue its long-term growth strategy,” he said. 

Mr Mead added that despite the patchy economic environment and global uncertainty, Australian Unity remained well-placed to respond to the changing demographic and social needs in Australia, where an ageing population seeks high quality financial, health and retirement services. 

“Governments all over the world are grappling with these demographically driven issues, and they will remain with Australia for decades to come. As we all come to understand these powerful forces, we believe Australian Unity can play its part in responding to these changing needs and help to provide important social infrastructure to the community,” Mr Mead said. 

“We believe a strategy that is centred on the wellbeing of Australians and building a leading, sustainable portfolio of businesses that foster this wellbeing is the right one for the future.”

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