A profitable alliance for Advance and Mellon
The two-year-old strategic alliance between Advance Asset Management and Mellon Global Investments has now passed the $1 billion mark in funds under management (FUM).
According to Advance managing director Kate Mulligan: “Australian investors are getting an appetite for asset classes other than Australian equities and Australian property. This desire to diversify will increase.”
As such, Mulligan anticipates that the alliance should attract another $1 billion in FUM over the same time period.
Of the total FUM, Australian retail investors have allocated over $350 million to international shares, and a similar amount to Mellon index funds. Fixed interest investments attracted $165 million, while Mellon’s global tactical asset allocation has FUM of $133 million.
Co-chair of Mellon International and Mellon Global Investments chief executive officer John Little said reaching the $1 billion milestone was “everything we had hoped for”.
He added: “People like our boutique approach, but also the fact that it is supported by an institution with a depth of resources. It’s a boutique style with large company backing.”
Currently, Advance offers retail investors five Mellon products, and is currently examining the possibility of making more funds available. Mellon has over 200 investment strategies available in total, from 11 subsidiary organisations, including Newton Investment Management and the Boston Company Asset Management.
Little said: “We are always looking to add to the product mix, but we don’t want to have a group of managers all doing the same thing.”
Mellon products are only available through Advance Asset Management in Australia.
Mulligan said: “There is a greater desire to go offshore. We are now in the 16th quarter of the Australian bull run, and the ASX has passed the 5,000 mark. So we are now hearing from advisers that they want to take more of their clients’ portfolios overseas.”
Recommended for you
In this episode, hosts Maja Garaca Djurdjevic and Keith Ford take a look at what’s making news in the investment world, from President-elect Donald Trump’s cabinet nominations to Cbus fronting up to a Senate inquiry.
In this new episode of The Manager Mix, host Laura Dew speaks with Claire Smith, head of private assets sales at Schroders, to discuss semi-liquid global private equity.
In this episode of Relative Return, host Laura Dew speaks with Eric Braz, MFS portfolio manager on the global small and mid-cap fund, the MFS Global New Discovery Strategy, to discuss the power of small and mid-cap investing in today’s global markets.
In this episode, hosts Maja Garaca Djurdjevic and Keith Ford are joined by special guest Steve Kuper to dive deep into the recent US election results and what they mean for the world.
