Wealth

Insights on wealth management, investments, and personal finance.

Wealth
Macquarie promises to repay failed super fund investors
Macquarie Group has agreed to compensate investors for A$321 million of losses arising from the collapse of the Shield Master Fund. Macquarie said it would repay the net capital invested in Shield through the Macquarie wrap platform, eliminating the need for investors to wait for a complex multi-year process as liquidators pursued the recovery of funds. The financial services group will purchase investors’ holdings in Shield at fair value and make a goodwill payment to them. This was consistent with a court-enforceable undertaking from Macquarie’s Macquarie Investment Management Limited (MIML) subsidiary to the Australian Securities and Investments Commission (ASIC). “The approach of providing immediate certainty and an improved outcome for investors benefits all parties,” Macquarie said in a statement. As a superannuation trustee, MIML oversaw $321 million in super investments into Shield by about 3,000 of its members between 2022 and 2023. By contrast, the trustee for the other platform that offered Shield, Equity Trustees, is defending Federal Court proceedings launched by ASIC. ASIC had started proceedings after MIML admitted not acting efficiently, honestly and fairly by failing to place Shield on a watch
Wealth
DBS multi-family office tops US$780m AUM
DBS Private Bank said on Tuesday its multi-family office platform has amassed more than S$1 billion (US$780 million, A$1.18 billion) in assets under management just two years after launch, with plans to double that figure to S$2 billion by the end of 2026. The platform, DBS Multi Family Office Foundry VCC (DBS MFO), reflects Singapore’s rising status as a global hub for family wealth at a time of heightened economic uncertainty and volatile markets. Family offices are private investment entities established by the ultra-rich to manage wealth, tax planning and succession. Multi-family offices provide similar services to multiple families, pooling resources under one structure. DBS MFO allows wealthy families to set up Singapore-based investment vehicles without building single-family offices from scratch. The bank manages administration while clients retain control of their investment strategies. “In the last nine months, we've seen more things happen than maybe the last nine years,” Lee Woon Shiu, Group Head of Wealth Planning, Family Office and Insurance Solutions at DBS Private Bank told Reuters. “This really heightened sense of insecurity that's triggered by this state of flux, this state of uncertainty, this sta
Wealth
Goldman: Hedge funds ramp up bets on banks, insurers
Hedge funds are turning more bullish on financial stocks, with banks, insurers, and consumer finance firms attracting the fastest pace of buying in three months, according to Goldman Sachs. The bank’s latest research note said hedge funds increased positions in financials last week amid expectations that higher levels of dealmaking and a potential easing of regulations would bolster sector profitability. An index of European banks has already risen more than 40% this year, while U.S. banks have gained just over 20%. The note said hedge funds showed no clear regional preference, though North America and Europe accounted for the majority of long positions. After a period of reduced activity in August, hedge funds lifted gross leverage - a measure of overall trading exposure - by the largest amount in eight months last week. Financials were the second most bought sector tracked by Goldman’s prime brokerage unit, with technology stocks following close behind. While banks typically benefit from higher interest rates, Goldman said that the prospect of lower rates had already been priced into valuations. The Federal Reserve cut interest rates last week for the first time since December and signalled further reduction
Wealth
Private credit sector told to lift its game
The Australian Securities and Investments Commission (ASIC) has called on the A$200 billion (US$132 billion) private credit industry to address worrying practices. Australia’s corporate regulator said it was concerned about opaque remuneration and fee structures, related party transactions and governance arrangements, valuation practices and inconsistent use of terms for effective disclosure. “Enhanced standards are needed to lift practices across the sector,” Chair Joe Longo said in a media release. ASIC was releasing its latest report on Australia’s public and private markets, Private Credit in Australia, by infrastructure investment executive Richard Timbs and former banker and chief risk officer Nigel Williams. “'While the report highlights some encouraging practices, it also reveals concerning behaviours that fall short of market expectations and more importantly that are inconsistent with existing financial services law,” Longo said. It comes only days after ASIC blocked $20 billion asset manager, Latrobe Financial Asset Management, from raising money through three fixed interest products. ASIC commissioned the review in response to the rapid growth of the sector in Australia, which in turn represents just
Wealth
Questions raised about small cap green shoots
Australian smaller companies have delivered their best earnings results in more than 25 years but doubts have been raised about their valuations, according to Goldman Sachs. ‘Small-cap’ stocks increased earnings by 8.5% year-on-year in the period ending 30 June, the broker wrote in a portfolio strategy research document. “The results mark a potential turning point for the sector, which has struggled in the post-COVID era amid rising interest rates, wage pressures, and weak domestic demand,” Co-head of Australian Research and Head of Portfolio Strategy & Quant Research Matthew Ross and Associate Tony Wu wrote. These stocks have underperformed large caps by 27% with a -10% return compared to +17% for larger peers since late 2021, when markets began pricing in higher inflation and interest rates. This was a result of smaller companies relying on short-term floating-rate debt and having a greater exposure to labour-intensive business models, which suffered disproportionately in the monetary policy tightening cycle. They derive a much higher share of revenue from the cyclical and rate-sensitive sectors like retail, housing and domestic services, which had underperformed global benchmarks until recently, but recent result

Wealth
ASIC private credit crackdown extends to Latrobe
The Australian Securities and Investments Commission (ASIC) has stopped private A$20 billion asset manager Latrobe Financial Asset Management from raising money through three fixed interest products. ASIC made interim stop orders against the La Trobe US Private Credit Fund and the 12-month term account and two-year term account products offered under the La Trobe Australian Credit Fund. The corporate regulator said fundraising was frozen due to deficiencies in the target market determination (TMD) for the two La Trobe Australian Credit products. ASIC was concerned that the target market for these products suggested an inappropriate level of portfolio allocation, given the risks of the fund and did not include appropriate distribution conditions.  The action against the La Trobe US Private Credit Fund was to protect consumers and retail investors from acquiring a product that may not be suitable for their financial objectives, situation or needs. “ASIC is taking this action to protect consumers and retail investors from acquiring products that may not be suitable for their financial objectives, situation or needs,” the regulator said in a media release. ASIC has issued 91 interim stop orders and one final stop ord
Wealth
Family offices holding assets steady in 2025: Citi
Family offices largely held their asset allocations steady in 2025 amid an uncertain economy and United States tariffs, according to a Citi Wealth survey. Half of respondents did not shift their fixed income holdings, up from 38% in 2024. Respondents in private equity were the most likely to have increased their allocations, with a net rate of 26% doing so, though this fell from 30% last year. “More family offices held their strategic allocations to individual asset classes steady overall compared to last year. Of those that did make changes, bullish shifts outnumbered bearish ones, particularly in private equity followed by fixed income and public equity,” wrote Citi Wealth. “In response to the tariff-induced market volatility in early 2025, many family offices responded with active management, including shifts to more defensive asset classes and geographies.” Family offices with over US$500 million in assets under management were more likely to increase their allocations across asset classes, except for fixed income. Around 63% of family offices reported adjusting their strategies after the U.S. announced wide-ranging tariffs in April. According to the survey, 39% said they took an active management approach, w
Wealth
Charles Schwab expands with 16 new branches, 400 hires
Charles Schwab is doubling down on its retail presence, announcing plans to open 16 new branches across the United States and hire up to 400 staff to bolster its wealth advisory teams. The Texas-based financial services and custodial firm said Wednesday it has already opened several of the planned locations, with another 25 existing branches set for expansion or relocation. The growth initiative underscores Schwab’s belief in the continued importance of in-person financial advice, even as digital services remain central to its strategy. The new hires will include financial and wealth consultants working alongside financial advisors to support high-net-worth and ultra-high-net-worth clients. Additional positions will be available in Schwab’s corporate offices, spanning client services, wealth management, and roles focused on digital innovation and artificial intelligence. Jeannie Bidner, head of Schwab’s branch network, described the physical footprint as a “competitive differentiator” in connecting with and serving clients. Schwab is targeting expansion in high-growth, high-wealth markets such as Texas, Florida, and California. One of the first new branches has already opened in Austin, with another set to follow
Wealth
SUPER NATION: Aspiration clash leaves tax up in the air
Super Nation is a fortnightly column that examines, explains and analyses key issues in one of Australia's largest, fastest-growing and most important industries: superannuation. Aspiration, according to one definition, is "a hope, desire, or ambition to achieve a specified goal". One of Treasurer Jim Chalmer’s goals is to increase tax revenue. No doubt he is hopeful, desirous and ambitious in this regard. One of Prime Minister Anthony Albanese’s goals is ensuring his Labor Government is returned at the next election, notwithstanding its landslide victory in May.Pulling on the reinsSensing an apparent lack of alignment between these goals, the Prime Minister has reportedly intervened to press pause on a planned increase in the tax rate on the earnings of superannuation accounts of more than A$3 million (US$2 million). The Treasurer’s office had no comment on the reports when approached by Azzet. According to media reports that so far have not been confirmed, the decision to rein in the Treasurer goes back to aspiration. Citing unnamed sources, the Australian Financial Review (AFR) newspaper wrote that discussions about the additional 15% impost had been held in recent weeks as Albanese’s office showed increase