The rise of social media had inflated a mini-bubble in the venture capital market and starved other entrepreneurs in the technology and internet sectors of capital – which is good news for venture investors with a contrarian bent. As social media hopefuls absorb thinning inflows to the venture capital universe, only “one out of 1,000 – or 10,000 – will be a Facebook or Twitter,” said Cameron Lester, founding general partner at US venture firm Azure Capital Partners. Still, these enterprises draw commitments from many investors, and then capital “dries up” quickly, he said. In 2010, US$11.6 billion was raised, surpassing only 2003 as the industry’s worst fundraising year, in which US$10.4 billion was committed by investors, according to Dow Jones VentureSource.
Magill rejects expenses allegations
Frances Magill, the former long-term boss of Statewide Super, has broadly denied the fund’s allegations she wrongfully gained up to $344,000 in members’ money. Frances Magill has refused to pay $344,000 to Statewide Super, believing there was “no proper basis” underpinning the allegations of fraud the fund had levelled against her, according to the defence statement filed by her lawyers. In the September 2010 statement, Magill broadly rejected allegations that she was overpaid salary and leave entitlements while also breaching the fund’s travel and corporate expenses policies – all of which amounted to $343,990 in wrongfully gained benefits, according to the $2 billion Statewide. As evidence, Statewide had submitted payroll and transaction histories to the SA District Court to substantiate its claim that Magill, the fund’s senior executive of 20 years, allegedly received the benefits.
Aussie Unity is most patient incubator: ex-Aberdeen boss
Australian Unity Investments (AUI) is one of the few boutique incubators interested in a “genuine partnership” rather than a quick private equity-style return, according to former Aberdeen Asset Management CEO Bill Bovingdon. In February, Bovingdon resurfaced with a new Australian fixed income boutique, 18 months after being restructured out of Aberdeen, where he had also run the bond portfolios in his dual role. Altius Asset Management reunites Bovingdon with former Aberdeen colleague Gavin Goodhand, as well as a long-time contact from the sell-side, the former head of fixed income at Credit Suisse and Commonwealth Bank of Australia, Chris Dickman. During his down-time, Bovingdon took his children out of school and spent six months on a family trip around Australia in a campervan.
Encouraging words for the Westscheme nine
A ray of hope has been offered to the nine active managers which shared in $1.5 billion of new Westscheme mandates within the past 12 months, with AustralianSuper’s senior manager of investments, Peter Curtis, saying the successor fund was “not ruling out expanding the number of active managers”. Unfortunately for the Westscheme nine, none of them have existing mandates in the same asset class with AustralianSuper.
Perpetual balanced fund slashes bond exposure
Perpetual Investments has reduced by two-thirds the allocation to nominal bonds in its balanced fund, downweighting the UBS Composite exposure in favour of floating-rate credits and inflation-linked bonds, as it seeks to lower the duration and bolster the returns of its portfolio.
American FATCAts could cost super funds
Australian super funds may have costly obligations under the Foreign Account Tax Compliance Act (FATCA), a new chapter of the US Internal Revenue code aimed at boosting the tax take from Americans living overseas, warns the financial services division of Deloitte.
Aussie to peak at $1.05 vs USD
The Australian dollar will peak at $1.05 once the Reserve Bank raises interest rates later this year, predicts National Australia Bank senior currency strategist John Kyriakopoulos, but following this cyclical retreat he forecasts a long-term average which may surprise.
NAB Asset Servicing keeps Tassie client
National Australia Bank’s Asset Servicing division has been reappointed as custodian for a $2 billion-plus Tasmanian fund.
New multimanager chief for Mercer
The man responsible for Mercer’s $17 billion multimanager business in Australia has been restructured out of the firm.
La Trobe picks up innovation award from VFMC
Care Super has taken out the top gong for a super fund at the annual VFMC Investment Stewardship Awards, with Goldman Sachs coming first in the managers’ section and La Trobe Financial Services first in the ‘innovation’ section.
Copper Rock is alright for coal miners
An affiliate of Old Mutual Asset Management, specialising in global small cap equities, has won a mandate for more than $100 million from an industry fund.
Asset tenders custody in defiance of merger trend
Asset Super’s decision to run a full custody tender means the $1.4 billion fund will fly solo for the foreseeable future, amid the consolidation trend in the superannuation industry.
