Funds | SMSFs | Family Offices
Funds | SMSFs | Family Offices & Private Investment Offices
China is now a major disrupter in Australian investment markets due to Chinese capital inflows. Disruption creates both danger and opportunities for Australian investors and Australian asset & company valuations.
Basis Point provides insights and networking opportunities between Chinese capital and ‘private’ investment pools in Australia including those managed by;
- Independent boutique fund managers (both hedge funds and long only funds)
- Venture capital funds as well as start-up funders & incubators
- SMSFs, focussing on the 150,000 SMSFs with AUM greater than $1 million (approx. 60,000 greater than $2m) as well as Australian Family Offices and private investment offices of Ultra-high-net-worth
- Proprietary trading firms (including offices of global prop trading firms located in Australia)
Basis Point has organised a series of events in this sector including:
- China Equity Market Access Seminar in November 2014, sponsored by Singapore Exchange and hosted by Baker & McKenzie.
- Global Futures Seminar in September 2013, sponsored by NYSE Liffe, Germany’s EUREX, Singapore Exchange and Bloomberg Tradebook, hosted by Bloomberg.
- Australian Investment Managers Directory launch party September 2013, hosted by Bloomberg.
SMSFs, Family Offices, Private Investment Offices of the UHNW
Australia’s 500,000+ Self-Managed Super Funds (SMSFs) control more than $500 billion, which is 1/3rd of the entire superannuation savings pool.
Basis Point focusses on the 10,000 SMSFs with AUM greater than $5 million, 50,000 SMSFs with AUM of $2 -5 million and 90,000 SMSFs with AUM of $1 -2 million. (ATO statistics extrapolated by Basis Point)
Baby boomers account for most of these large SMSFs. Increasingly, as they semi-retire, they will have money & time to invest, have business skills to share, and are seeking investments outside of ‘yield plays’.
Traditionally (in Europe and the US with multi-generational UHNW) Family Offices are managed by external investment teams reporting to a Board of Directors consisting of family members (siblings, cousins, parents and uncles/aunts of the extend UHNW family).
In Australia, we cover Family Offices as well as ‘private investment offices’ of first generation Australian ultra-high-net-worth.
Proprietary Trading Firms
Australia has several home-grown proprietary trading firms deploying sophisticated trading & investment systems to capture returns from global investment markets. Some are off-shoots of UHNW or Family Office operations, others are evolving into funds businesses while others form part of a ‘managed account’ service offering of financial advisory firms.
Several global proprietary trading firms have also established offices in Australia to either trade Australian markets and/or to trade Asian markets.
Australian Investment Managers Directory
Basis Point is currently updating its 70+ page hard-copy Australian Investment Managers Directory.
Our most recent edition:
- Profiles 209 investment management firms that are fully or partly owned by their staff, as well as listed investment companies and specialist alternative investment managers including hedge funds.)
- These 209 investment management firms control approximately $279 billion from Australia (US$252b).
- Of the 209 firms, 148 are independently-owned managers (predominantly long-only, benchmark-unaware strategies), and 61 are hedge fund firms.
The directory showcases the deep talent pool and sizeable AUM in Australia’s investment management sector, and provides insights into Australia’s institutional and SMSF superfund pool.
Basis Point's Small Cap and VC Funds Industry Report
We are currently producing the Basis Point 2015 SmallCap and VC Funds Industry report.
Austrade’s new SIV complying investment policies is a catalyst for the creation of this report as it significantly impacts on Australia’s funds management and VC industries.
Some of the insights we will be exploring in the report include:
- A who’s who of industry participants and service providers in the SmallCap and VC ecosystem.
- Size of the market and comparisons to other investment markets in Australia
- Forming and running SmallCap and VC funds. Risk and return considerations. Raising capital.
- Demarcation in Australia between start-up/angel investing vs VC vs PE vs pre-IPO. There is a spectrum of risk/return and size of capital opportunities across these sectors.
- The appetite for SmallCap and VC investments from Australia’s large HNW sector (eg larger SMSFs and Family Offices), boutique ASIC regulated fund managers, listed investment companies (LICs), and private investment offices (PIOs), run by wealthy individuals
- The appetite for SmallCap and VC funds from SIV Chinese and other Asian investors