Centric Wealth, the financial services company backed by CHAMP Private Equity, will develop new in-house investment solutions for financial advisers and their clients as part of plans to expand its product and services business.
The group currently offers five investment funds including the Centric DHA Residential Property Fund, which recently received an AA+ rating from Property Investment Research and won PIR’s Unlisted Fund of the Year award. The fund was launched in July and seeded with $48 million of client money.
Centric Wealth also teamed-up with funds manager BetaShares in March to build its international equities fund, Customised Portfolio Solutions – Global Manager Trust. The multi-manager fund invests in global managers including AQR and Sands Capital Management. It has more than $230 million under management.
According to Kieran Canavan, Centric Wealth’s head of products and services, the group will partner with DHA to launch additional funds in the future.
“We will only develop new products if there’s a gap in clients’ portfolios and we can’t find an existing solution,” he said.
“Our preference is to use external funds managers but we have the scale and resources to create a solution internally if necessarily.”
Centric Wealth is responsible for the marketing and distribution of the Customised Portfolio Solutions – Global Manager Trust, and also sets the fund’s asset allocation and regularly reviews the underlying managers. It receives a 0.30 per cent margin on the fund.
It acts as a “facilitator” for the Centric DHA Residential Property Fund and does not receive a margin, Canavan said.
He said the group’s product and services division would expand into other asset classes on an opportunistic basis, adding that the unit had operated profitably since its inception three years ago.
