MAGAZINE OF CHOICE FOR AUSTRALIA’S WEALTH INDUSTRY
www.moneymanagement.com.au
Vol. 35 No 8 | May 27, 2021
12
INFOCUS
Budget super changes
26
FIXED INCOME
Greenwashing in ESG bonds
FINANCIAL ADVICE
Advising across generations
Federal Budget points to fewer staff within ASIC
Hyperion AM crowned Fund Manager of the Year 2021
BY MIKE TAYLOR
PRINT POST APPROVED PP100008686
BY JASSMYN GOH
IT has taken eight years for Hyperion Asset Management to reclaim its crown as Fund Manager of the Year. The fund manager was given the highest award at Money Management's 2021 Fund Manager of the Year awards after winning two category awards and receiving a ‘highly commended’ for another. This year, Hyperion won the Australian Large Cap Equities and the Australian Small/Mid Cap Equities categories while it received a ‘highly commended’ for the Global Equities category. Speaking to Money Management, the fund’s chief investment officer and managing director, Mark Arnold, said the team was very excited and that it was a great honour. “We are a small investment team of 13 and our values are that we are investment driven, not market driven. Our decision making is evidence based, we think long-term, and are alpha focused,” Arnold said. Its lead portfolio manager and deputy chief investment officer, Jason Orthman, said it was nice to be recognised after working hard day-to-day. He said moving to remote working during COVID-19 had been quite easy and that productivity
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FUND MANAGER
OF THE YEAR 2021 MARK ARNOLD
increased as they had a group of driven individuals. Orthman said their largest alpha capture points or outperformance tended to be during a crisis so while the pandemic caused a “real flux point in markets”, all three nominated funds performed very strongly. The portfolios, he said, were a collection of modern businesses that had a relevant product or service to the next generation. “Many of the market leaders have become really stale, are old world, and dominate the benchmarks they haven’t really innovated or invested in their businesses heavily as a general assumption,” Orthman said. “There’s a whole range of businesses that started with a blank piece of paper, often that are
AUSTRALIA’S FIRST INDEPENDENT AND WHOLE OF MARKET AWARDS
founder-led and tend to be more modern and relevant in this digital smartphone internet-enabled world. The next generation, whether it’s the millennials or Generation Z, are clearly digital natives and behave completely differently to baby boomers. “Many of these large firms have struggled to transition their business model and their products to be relevant to the next group of users. We really look for firms that are made for the times with products that are really disruptive.” Arnold said the funds were more active last year as there were more opportunities to buy high-quality business at lower prices. “We’ve added quite a few Continued on page 3
Full coverage on page 14
THE Australian Securities and Investments Commission (ASIC) has emerged as one of the few Government agencies to take a resourcing cut out of the Federal Budget. At the same time as financial advisers continue to complain about the impact of the increased ASIC funding levy, the Budget documents reveal that while the Australian Prudential Regulation Authority (APRA) is budgeted to have around 44 more staff next financial year, ASIC is budgeted to have around 218 fewer staff. Continued on page 3
Demand for financial advice jumps from younger clients BY LAURA DEW
FINANCIAL advisory group deVere has seen a 54% rise in enquiries from investors aged under-30. The 54% year-on-year jump was attributed to the risks created by the pandemic as many considered their health and future financial security. The firm said this ‘debunked’ the myth that younger people were disinterested in their finances. Nigel Green, deVere chief executive, said: “[The pandemic] has brought into all-too-real focus how things Continued on page 3
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