Recent Additions to the Powerwrap Approved Product List – November 2019
Powerwrap has added the following funds to our Approved Products List (APL). If you are an adviser who would like access to any of these funds, please raise a ticket through Hive or the Service Desk.
In 2015, Freddy Bartlett, former Deputy CEO and CIO of the South Australian Government’s Motor Accident Commission’s $3.5B diversified investment portfolio, was invited to establish ICAM to leverage his team’s expertise in creating and managing alternative property and infrastructure investments across Australia. The firm was founded by Jim Hazel, Chairman of Ingenia Communities (ASX:INA) and Board Member of Bendigo Adelaide Bank; Rob Chapman, previous CEO of St George Banking Group and current Chairman of Adelaide Airports; and Ed Peter, Chairman and Co-Founder of Duxton Asset Management. ICAM currently has $375 million in gross assets under management and is growing strongly.
ICAM Land Lease Community Group
Stratford House, heritage building where community facilities will be located
Along with David Speck, principal of Equity One and a specialist in retirement living projects, ICAM is leveraging its considerable property experience to bring to market its first Land Lease Community (LLC) in Tahmoor, NSW. This will be the first of several LLC’s to be developed by ICAM. The Group will benefit from the considerable experience of Jim Hazel, Chairman of listed retirement living company Ingenia Communities, as he will also chair the ICAM LLC Group.
- 221 LLC dwellings to be developed on approximately 13 hectares of land
- Median purchase price of LLC homes will be $460k, 45% below the median purchase price in NSW
- Target IRR: 17% – 20%
- Average annual distributions 38%
- 15% CAGR
- Holding period -6 years, with option to extend
- Target equity raise $18.5 million, of which $11 million has been committed.
*Assumes sale of Group in FY26 : Total distribution 150%, of which 58% (yield from Sales and Rentals) and 92% (yield from sale of Group at exit), conservative 8% cap rate on sale.
^Avg distribution calculated from Oct19 – Sep25 assumes sale of Group (Avg distribution from Oct19 to Jun26 excluding the sale of the Group is 24%).
Site plan of the Tahmoor LLC community
ICAM – Churchill Centre North Investment Trust 1
ICAM acquired 50% of the Churchill Centre North Shopping Centre in February 2018 and it has performed very well for our investors. Axiom Properties, the original developer of Churchill, retained 6.65 million units in the Trust and now wishes to sell these units to free up capital for other projects.
- 98% occupancy, 8.7 year WALE
- Forecast yield: 7.3% p.a. over the next 5 years
- Target IRR: 10% +
- Offered at 1% discount to NTA
- Unit price at 30 September $1.01, offered at $1.00
- Trust holds a long-term lease over the land, not subject to land tax.
Key Value Drivers:
- Located adjacent to the only Costco in South Australia
- Increasing foot traffic (over 3.3 million visits per year)
- Anchor tenants Coles and Kmart performing strongly, moving annual turnover up 4% and 4.7% respectively for the 12 months ended June 2019
- Best performing Coles asset in South Australia
- New SuperCheap Auto site now trading, further sites under discussion
- Development upside – 12,000 sqm land available for further development
*5 Year forecast cost of debt is 3.8%, no upside assumed from renegotiating debt in current low interest rate environment.
Auscap Global Equities Fund launched
After many years of consideration and preparation, the exciting opportunities that we are seeing in various global markets have driven our decision to launch the Auscap Global Equities Fund (Global Fund) as of 1 November 2019.
More than ever before we live in a connected world. Australians are typically consumers of global brands and are able to access these brands locally. What is happening on a global scale is increasingly relevant for Australian consumers, businesses and investors. Paying attention to global trends, themes, disruption and developments can uncover significant investment opportunities abroad and is becoming more important for successful domestic investing. Major trends are often identified in other markets before we witness them in Australia. Focusing solely on an investment universe of Australian listed companies can risk being ignorant of developments that will positively or negatively affect Australian businesses.
Australian investors are under-invested in international companies. According to the September 2018 SuperConcepts self managed super fund (SMSF) investment patterns survey, the average SMSF allocation to global equities is only 15.2% compared to 36.2% for Australian equities. Part of the reason for this lower allocation comes from the difficulty of investing directly into international equities. Dealing with the different exchanges, currencies and the administration requirements of foreign markets can be challenging, time consuming and cumbersome. We hope that the Auscap Global Equities Fund provides a path for eligible investors to access high quality international businesses that we believe represent compelling value.
The Auscap Global Equities Fund will have a strong value and quality bias. The Auscap Global Equities Fund’s current exposure by country of listing and by market capitalisation classification is shown below. The portfolio will be diversified by region and sector, with a bias towards large capitalisation and often well known companies. In is anticipated that the Global Fund will have a developed market bias.
What does the current portfolio look like?
As at the date of this newsletter the Auscap Global Equities Fund has 52 investments across 12 markets with a weighted average market capitalisation of AU $160 bil. The top ten largest investments are listed in alphabetical order below:
If you are interested in investing in this fund please contact your Relationship Manager.