Advance wholesales retail fund

Advance Funds Management, the retail distribution business of St George Bank, is making the Advance Global Alpha Fund available to wholesale investors for the first time.

The new Global Alpha Fund, which is managed by Mellon Capital, aims to return 10 per cent over the MSCI World Equity Index (unhedged) over rolling three-year periods. The long-short equity, bond and currency fund was launched into the institutional market in September last year by Mellon’s Australian office, headed by managing director James Gruver. However, wholesale investors, including small-to-medium corporate super funds and master trusts, can now access the product through Advance, Gruver said. US-based global financial services company, Mellon Financial Corporation, appointed Advance to distribute the group’s products locally to the retail market in 2004. According to Gruver, there has been no change to Mellon’s Australian strategy, which sees his team market Mellon’s capabilities direct to institutional investors with Advance looking after the retail financial planning market. “We continue to focus on the institutional market while Advance focuses on retail as well as some of the areas that fall in between now,” Gruver said. “The relationship isn’t changing or expanding, it’s just that investors who are interested in the Global Alpha Fund are more than welcome to get it through Advance.” Mellon Capital is a wholly owned subsidiary of Mellon Financial Corporation and manages over $1.3 billion on behalf of Australian investors. Last week Advance also replaced international value manager Morgan Stanley with core-style manager Boston Company. Ratings house S&P placed the Advance fund on hold until further notice but indicated the move to Boston was an appropriate decision.