Macquarie wraps up private equity for retail clients
MacquarieFinancial Services is rolling out a fund of private equity funds for the retail market in what it says is a watershed for investors wanting to access alternative investment classes.
The fund, to be offered entirely through master trust and wrap menus, will invest in between eight and 12 underlying private equity fund managers at any one time.
The launch of the fund comes as figures released by PricewaterhouseCoopers last month show that Australians more than doubled their exposure to private equity throughout calendar year 2001.
According to the report, Australians poured almost $2.5 billion into private equity in 2001, up from $1.2 billion the previous year.
However, the vast majority of the investments came from large superannuation funds, a situation Macquarie would like to reverse somewhat with a fund of fund structure designed specifically for retail investors.
“Sometimes it is difficult for investors and their advisers to understand a new asset class and this product is a good one-stop-shop for them in private equity,” Macquarie head of retail investments marketing Cathy Hales says.
Hale says the new fund will target investors who have investment horizons long enough to fit with the extended time frame it usually takes private equity investments to come to fruition.
She says the product’s fund of funds structure should help allay some of the fears retail investors often have about the risks associated with private equity investments.
“The reason why fund of funds is a good structure in this asset class is because it is still a risky asset class and it is a good way for retail investors who may be less familiar with private equity to access it,” she says.
Recommended for you
The use of active ETFs in model portfolios by financial advisers is a key factor in the growth of the products for iShares, according to BlackRock.
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
Flows into cash and fixed income ETFs soared in May, rising from $366 million in April to more than $1.3 billion, data from Betashares shows.
Quinbrook Infrastructure Partners has promoted its Australian head to the role of chief executive of the global investment manager.
