New players spice up mortgage funds: Aviva
The so-called mortgage fund ‘heavyweights’ have been delivered a wake-up call to review established practices by the entry of new players, according to Aviva Research.
Aviva Research manager Stuart Fechner said the phenomenon had been detected in Aviva’s latest review of mortgage funds and suggested the sector was in the midst of a shake-up.
He said the review had been conducted during an intriguing development phase for the mortgage industry with a flood of newer entrants adding considerable spice to the sector.
“This, combined with recent industry efforts to improve disclosure and transparency, has provided much-needed impetus to revitalise what in some cases were in danger of becoming fairly tired investment vehicles,” Fechner said.
He said there were now signs that managers were striving to improve the appeal of their products by committing to enhance cash returns, appointing dedicated arrears recovery resources and enhancing risk prevention policies.
Aviva Research’s review covered seven mortgage funds from six mortgage managers with no funds awarded the highest five-star rating, but four awarded the four-star rating: Australian Unity Wholesale Mortgage income Trust; AXA Wholesale Australian Monthly Income Fund; Challenger Howard Wholesale Mortgage fund; and Perpetual Wholesale Monthly Income Fund.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
