Surging equity markets have driven the Future Fund’s return higher, but its prediction that inflation will be stickier than expected has been born out and it “remains conscious of the potential for significant deterioration”.
A number of super funds managing less than $10 billion have been slugged with an increase in their restricted APRA levy of more than 80 per cent even as the regulator pushes them to keep costs down.
Henderson’s first acquisition in Aussie expansion
(Pictured: Rob Adams)
Henderson Global Advisors has made its first acquisition in Australia since setting up shop early this year. The UK-listed manager has acquired all of the Ascalon-affiliated hedge fund manager H3 Global Advisors.
H3 Global specializes in managed futures and commodities investments and has about A$340 million under management. Ascalon bought its 45 per cent stake in 2007 when the manager had just $50 million in AUM.
Chuak Chan, Ascalon’s chief executive, said the sale highlighted his company’s business model of acquiring, actively building and strategically exiting investments when the time was right. “The sale represents a positive outcome for all parties,” he said.
Rob Adams, Henderson’s executive chairman in Australia, said the investment strategies managed by H3 Global were “contemporary and world class and are complementary to our business globally”.
Henderson, which has a lot of Australian shareholders due to its heritage as a former subsidiary of AMP, signaled at its launch function in March that it would be looking to make some selective acquisitions, especially in the alternatives and boutiques space. About 65 per cent of Henderson’s registry is Australian, with Perpetual the largest shareholder, followed by the staff.
H3 Global’s Cayman Islands-registered fund, which is on the BT and Asgard wraps, has not performed very well since inception in 2009, returning a negative 1.67 per cent over that period. It was down 4.35 per cent in the year to September.
H3 Global has offices in Sydney and London. The firm said that working within a global business would give the team the opportunity to fulfill its long-term objectives.
