A new Platypus Asset Management (Platypus) will be formed, 50% owned by AUI and 50% by the existing business (to be renamed Platypus Holdings). Platypus Holdings will retain its’ existing hedge fund activities which will not form part of the joint venture.

The joint venture will continue its institutional distribution. AUI will focus on expanding distribution of Platypus’ out-performing Australian equities portfolio through financial planners and platforms.

The portfolio’s three-year returns (29.5% pa) were ranked number one in Intech’s latest Australian equity report.* Its’ average annual performance since inception (January 1999) is 19.5%, which is 7.1% above the ASX 300 in the same period. The portfolio currently has $50m in funds under management and will continue to be managed by the same team.

Mr. David Bryant, head of AUI, said that the joint venture is a key step in AUI’s stated strategy of providing specialist products across all asset classes.

“We recognised some time ago that it was necessary for AUI to have a first-class Australian equity product that complements the specialist micro cap fund we already offer and have been actively searching for the right partner for the last 12 months.

“Platypus’ high conviction style, excellent performance track record, and the calibre of the principals, makes it an ideal partner for us, expanding the range of high quality funds that we already offer.

“We intend to launch an Australian equity fund in the near future which will utilise Platypus’ active management approach to outperform its benchmarks.

Mr. Donald Williams, CIO of Platypus, says; “The joint venture is an exciting move for us and means we can partner with a strong Australian company dedicated to helping us achieve and manage the business’ planned growth.

“It also means that Platypus can focus on our overriding goal which is to provide investors with consistent out-performance.

“We have found that gaining traction in the retail market is difficult, expensive and time consuming, so accessing AUI’s experience and expertise in this area is a sensible move for us.

“AUI is the ideal partner because of its’ experience and proven track record in establishing joint ventures that allow us to focus on what we do best.”

Mr. Bryant added that, like its’ joint ventures with Acorn Capital and Vianova Asset Management, AUI will be responsible for distribution of Platypus’ funds to retail investors through financial planners and platforms, while Platypus will manage institutional distribution.

“Our joint venture approach means that specialist managers such as Platypus can retain the freedom to manage money, with the assistance of an established organisation to expand its’ marketing and distribution while providing support with its compliance and operational activities.”

Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity. It currently has over $3 billion in funds under management. Its approach to product development is to use its established in-house expertise in property and mortgages while also forming joint ventures and strategic alliances with other organisations with specialist expertise.

* Australian Unity Funds Management Limited. ABN 60071497115,
AFSL 234454