New funds launch – Hobson Wealth
IIS’s Fund Hosting business is excited to announce we’ve been working with Hobson Wealth to launch a suite of three PIE funds for them as part of the Hobson Wealth Investment Funds scheme. This is a ‘first of a kind’ arrangement in New Zealand, as this is the first Fund Hosting deal with a local wealth management business.
Hobson Wealth’s goal was to bring funds to market quickly, cost effectively and on robust infrastructure, and as such they decided to outsource the issuing and managing of the funds to IIS, a licensed managed investment scheme (MIS) manager. IIS formally issue and offer the funds, providing the operational framework under which the funds are run, as well maintaining responsibility for all regulatory and compliance related aspects of the funds.
Hobson Wealth CEO, Warren Couillault said he “saw value in outsourcing the fund operation, regulation and compliance services to IIS, which offers proven systems and economies of scale with underlying service providers.” Couillault added another a key benefit of outsourcing enables them to focus on the ‘front office functions’ like investment management and distribution activities.
Hobson Wealth’s new funds offer investors exposure to NZ equities, NZ fixed interest and international equities respectively. These are available to Hobson Wealth clients though their newly launched Navigator service.
Hobson Wealth Partners Limited, originally Macquarie Private Wealth, is a leading private wealth advisory team based in New Zealand. Hobson Wealth’s team of authorised financial advisers provides a high-quality, professional service, strategic investment planning and management, advice on securities, assistance with asset allocation, portfolio construction or securities trading.
IIS’s Fund Hosting business now has eight clients and over NZ$3.7 billon AUM. Predominantly IIS’s clients have been large offshore groups such as Legg Mason, Russell Investments, Antipodes, APN Property, First State Investments. However the work undertaken with Hobson Wealth is a signal that NZ based investment managers and private wealth groups can also benefit significantly from utilising the IIS Fund Hosting model. This model allows them to, cost effectively, have their own fund solutions without the need to hold an MIS licence or get bogged down with day-to-day operational, compliance and regulatory requirements. For those groups not requiring the full Fund Hosting service, IIS offers a fund execution model, working with clients wanting assistance with projects or one off assignments on a consultancy basis.