Bendigo Bankhas launched the first products for its new funds management operation, Bendigo Managed Funds including four new funds and the existing Sandhurst Trustee’s industrial share fund which has been incorporated into the new operation.
The funds will focus on a range of diversified and Australian equity funds and the group’s managing director Rob Hunt says the issue of the five-fund prospectus marks the bank’s ‘serious entry’ into the funds management market in Australia.
“We have a ready-made distribution arm of almost 200 branches, backed by an advisory structure directly servicing that network,” he says.
Bendigo will use the recent company restructure and creation of the Bendigo Wealth Management division, which incorporates Sandhurst Trustees.
The back office of the new fund management business will be run by IOOF through its fund management arm, Perennial.
Perennial executive director Tony Hodges says the relationship with the bank has been active since rebadging its Max master trust as Bendigo Financial Solutions.
“We will work with Sandhurst to provide back-office services for the new operation,” Hodges says.
“The alliance recognises Bendigo’s distribution capabilities with our product manufacturing skills.”
Hodges says Perennial will not be the only fund manager to work within the alliance.
“We recognise today’s investors want to have a choice of managers in the products,” he says.
In addition to Perennial, Investors Mutual and Platinum have been added to the fund manager list.
The new funds are a conservative funds investing in both Australian and international equities as well as LPTs and fixed interest. All four managers will be involved in this fund.
The new Bendigo Balanced Fund will use the same managers and asset mix as the Bendigo Future Growth Fund. The Sandhurst Future Leaders Fund will invest in Investors Mutual’s Future Leaders Fund.
Investors Mutual is also taking over the fund management of the existing Sandhurst Industrial Share Fund.
The funds will be paying up to 3 per cent up-front fees and up to 0.4 per cent trails.
The MERs for the new funds are expected to be less than 2.1 per cent, however the Sandhurst industrial fund is 1.9 per cent.
Hodges says Perennial will be suggesting new product opportunities to Sandhurst as they arise and will advise on future fund manager appointments. The bank has said it is looking to grow funds under management to match the bank’s assets, which are $7.5 billion. It currently has more than $3 billion under management through Sandhurst Trustees and its two financial planning businesses Bendigo Investment Services and Worley Securities.
