AUSTRALIA - Australia's Babcock & Brown Direct Investment Fund (DIF) has appointed JPMorgan Investor Services as fund administrator and custodian.
The new fund is designed to meet the growing demand from major superannuation funds for ways to assign an increased weight of member monies to direct investments.
JPMorgan business executive Australia and New Zealand, Graeme Arnott, said that this type of client is an indication of the opportunities that are emerging in the industry.
“As the market continues to mature we will see funds and investment managers seeking credible alternatives to their traditional heavy bias towards listed equities and fixed interest,” he said.
DIF sees direct investments as an attractive means of diversifying exposure and risk across a large investment opportunity pool and reducing the pressure created by an overburdened, low return equity market and a shrinking fixed interest market.
“Direct investment assets currently represent the core of all banking and capital markets activity and are capitalised at around A$760bn,” Fergus Neilson, at Babcock & Brown Direct Investment Fund, said.
“If direct investments are made much more readily accessible, the investment opportunity pool for super funds will increase from under A$1trn to more than A$1.7trn.”
DIF will hold senior debt, mezzanine debt and equity in the assets it controls.
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