US Alliance
Alliance Capital has signed up with Perpetual Fund Services to handle the back of-fice operations.
Alliance Capital has signed up with Perpetual Fund Services to handle the back of-fice operations.
The US-based group signed a three-year deal with Perpetual to handle the record keeping, administration and call centre leaving Alliance to focus on marketing its US based specialist mutual funds to the Australian market.
Perpetual Fund Services (PFS) group executive Graham Putt says the success of the joint venture for Perpetual is linked to that of Alliance.
"Our success is dependent on how much business Alliance can attract and as such we will add resources as we see fit, keeping in line with the success of Alliance," Putt says.
Alliance intend to offer a range of 19 funds which target specific sectors to the Australian market.
Alliance Capital Australia senior vice president Tony Poleondakis says technology, healthcare and privatisations funds are likely to attract the widest interest from lo-cal investors.
The only issue which still dogs the roll-out of US mutual funds in Australia is their treatment under the proposed capital gains tax changes.
Under these rules US mutual funds will be taxed at the full marginal rate compared to half that rate for local funds since US funds are considered companies and as such distribute returns as dividends.
Alliance Capital and Merrill Lynch, the other US mutual fund planning to operate here, will lobby Canberra to get US mutual funds exempted from any possible CGT changes.
AUTHOR
Jason Spits
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
