Fund Product, Company and Regulatory Updates as at 5 June 2018

Product Updates

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Magellan and Airlie launch retail Aus equities fund
Airlie Funds Management is now launching its first Australian equities fund to retail investors in partnership with Magellan. The Airlie Australian Share Fund has a concentrated portfolio of 15-35 Australian listed companies, with $5 million in funds under management currently. Portfolio managers are Matt Williams and Emma Goodsell. 

Citi launches currency product for HNW clients
Citi Australia is launching a currency product for high-net-worth clients. The Global Currency Account is a transaction account with 10 currencies accessible in real time, with the facility of a foreign currency debit card. This means the local account can send and receive payments in local currency, users can switch instantly between currencies via a mobile app, and instant transfers between accounts can take advantage of favourable currency movements. There are no local ATM fees when using local currency.

The account currently supports Australian, United States, British, European, Canadian, Hong Kong, Japanese, New Zealand, Singaporean and Swiss currencies. 

Spaceship launches two funds
Millennial superannuation specialist fund, Spaceship, has launched two new funds under the Spaceship Voyager brand. The Spaceship Index Portfolio is a passive index fund to hold shares from 200 of the largest global companies. The second fund, the Spaceship Universe Portfolio, holds 100 Australian and global companies, hand-picked as likely to be protected from competition and technological disruptions. 

Company Updates

Pengana to buy into HNW credit firm
Pengana Capital is buying a minority stake in a credit investment manager that offers credit to high-net-worth investors, Global Credit Investment. 

Decentralised Capital launches in Australia
Decentralised Capital is a blockchain specialist assets and investments firm offering over the counter trading and asset management services for cryptocurrencies and digital assets. A Sydney office is open for business, with plans to expand into Asia. 

New investment boutique launch by Pinnacle
Pinnacle Investments has launched a boutique investment firm, Firetrail, run by former Macquarie investment specialists Patrick Hodgens and Blake Hendricks. The firm is already running two funds. 

Regulatory Updates

ANZ,  Deutsche and Citigroup facing cartel allegations
Allegations of criminal cartel involvement by ANZ, Deutsche and Citigroup are being investigated by the Australian Competition and Consumer Commission (ACCC). The ACCC said it expects the Commonwealth Director of Public Prosecutions (CDPP) to lay charges against companies and individuals. 

BBY, BBY Advisory and SmarTrader AFS licences suspended
ASIC has cancelled the Australian financial services (AFS) licences of SmarTrader Limited and BBY Advisory Services Pty Ltd from 18 May and 22 May 2018 respectively, each for three years. Administrators and receivers have been appointed. 

CBA and AUSTRAC enter agreement
The Commonwealth Bank of Australia (CBA) has announced it has entered into an agreement with AUSTRAC, Australia's financial intel agency. This agreement resolves civil proceedings commenced by AUSTRAC in the Federal Court of Australia in August 2017. CBA is to pay a civil penalty of $700 million and AUSTRAC's legal costs of $2.5 million. CBA admitted to contravening Australia's anti-money laundering and counter-terrorism act, with contraventions including risk procedures, reporting, monitoring and customer due diligence. AUSTRAC's civil proceedings are otherwise dismissed. 

Water Infrastructure Criteria launched
The Water Consortium, an international group of climate finance and sustainability organisations, has launched the Water Infrastructure Criteria for the Climate Bonds Standard. The criteria is a supportive tool for best practice in sustainable investments in water infrastructure and green/grey hybrid water systems. This means that natural water infrastructure like watersheds, wetlands and forests can be protected, managed and restored using Climate Bonds Certified green bonds, allowing the investments they need. The criteria is for potential green bond issues and investors.