Access To Capital

Access to meaningful capital isn’t easy!

In-house management by large institutions

Many of the largest superannuation funds in Australia are boosting their inhouse asset management capabilities, and withdrawing mandates from external managers. For example, Australian Super’s move of $7.7bn internally from Perpetual, Fidelity and Alphinity [1]. This makes gaining access to institutional capital increasingly competitive.

Increased difficulty in marketing and distribution

When FUM came from one of only a few big names, marketing and distribution was relatively simple: it was just about opening the right door and making the right pitch. But now that most FUM comes from the middle market and sophisticated individuals, the cost and difficulty of getting in front of investors has increased exponentially.

Increased competition

For a fund to succeed, fund managers need to convince investors to put part of their hard earned funds with them ahead of all other options. With more and more funds now competing for the mid-market, differentiation and reputation can often be the key factor.

Case study

When MHOR Asset Management announced the closure of its Australian Small Cap Fund in June 2019, it advised:

“… it has not been able to grow the funds under management to a sustainable level and does not expect any material growth in the short-medium term…”

The Fund had achieved an impressive annualised return of 24.2% net of fees since inception on 1 August 2016, managed by former Vocus CEO James Spenceley and former Renaissance Asset Management Portfolio Manager, Gary Rollo. MHOR was added to the ASX's mFund service in 2018 to improve investor access, but they gathered only $25m in total. Clearly, the problem is not simply a performance or access issue.

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How TIP Trustees can help

  • Through its parent TIP and its broader network TIP Trustees can help you effectively raise capital.
  • We have raised over $150m for a variety of asset classes, through our broader network.
  • We can help you market directly to potential investors and increase your chances of landing a mandate.