Longevity and adviser networks come up trumps
A firm industry presence and a successful network of financial planners has emerged as the standout features for the top three finalists in theMoney Management/Assirt Fund Manager of the Year mortgages category.
This year’s winner, Perpetual Investments, attributes its finalist nomination to its long industry presence as a provider of mortgage funds services since 1966 and the fact that it has used the same guidelines since inception, which have become the cornerstone of Perpetual’s lending strategies.
A strong support network of financial planners is another important ingredient of the manager’s success.
Assirt considers Perpetual Investments’ capability in managing mortgages to be strong, saying the group has demonstrated a mature process with established guidelines to control risk associated with mortgage assets.
According to fellow finalist Challenger International, the ability to target its market and move with the flow of industry trends has ensured its place as a finalist.
“One of the key factors in our lending is targeting the small to medium-sized commercial loan market borrowers with less than $2 million, of which there is a very high percentage,” says Challenger Howard Mortgage Trust product manager Steven Kyling.
He says although the trust has been in existence for 16 years, and under Challenger’s banner since 1998, the whole lending department’s ability to remain stable, while demonstrating a willingness to expand in new directions, has been the key.
In the past 18 months, Challenger has made a push into the master trust sector, creating both a wholesale and retail presence.
“Challenger has a well-established investment process. There is a structured loan approval process, with the compliance function playing an independent and constructive role,” Assirt associate director Anthony Serhan says.
“The group’s strong performance has attracted a substantial inflow of funds. As a result, Challenger held 26 per cent of its assets under management in cash as at the end of February 2002, a level which Assirt considers to be excessive. Challenger is addressing this issue via an alliance with Westpac Banking Corporation. Assirt considers the agreement with Westpac a positive development,” he says.
Also capitalising on its performance and industry staying power is Bendigo Bank subsidiary, Sandhurst Trustees.
Sandhurst Trustees general manager for funds management and business integration Georgina Pickett says the group is one of Australia’s oldest companies and was established in 1888.
“The objective of the fund is to offer investors competitive returns, and a careful selection of mortgages. We only invest in Australian mortgages — predominantly commercial securities,” Pickett says.
“We have a highly skilled lending staff and we also use various credit lending arms of the Bendigo banking group. We also have a strong agent distribution network, where various planners recommend our trust,” she says.
Pickett says other features of the fund include payment of above term deposit rates, flexibility because of its small entry amount, as well as minimal losses over time. The group has been given a five star rating by Assirt.
Recommended for you
Investment platform Praemium has reported strong 2024–25 financial year results, with large increases across a range of business metrics, which it credits to the firm’s strategy and high-net-worth focus.
Alternative investment manager Regal Partners has set a target of doubling its offshore funds under management within three years amid strong inflows from offshore investors in the first half of 2025.
While crypto continues to gain traction among investors globally, improving accessibility for financial advisers is key to helping them serve the demand from younger clients, but there are some barriers still hindering adoption.
Fitzpatricks Advice Partners has formed a strategic alliance with two chapters of a global business support and networking organisation, expanding its offering for the firm’s advisers.
