IPO Wealth (PRIVATE:IPO) managing director James Mawhinney gives Proactive Investors the latest updates on its Australian flagship IPO Wealth fund, and educates the market about the 'M12 maximiser' investment product category.
"We tended to find that a lot of the [High Net Worth] investors were getting fed up with the returns that they were getting on cash investment products such as term deposits, bonds and other similar income-generating type products. And so we saw an opportunity to establish a fund called IPO Wealth that provides a rate of return that's higher, and from our perspective it gives investors the opportunity to often get ahead of inflation... we're very personalised with the approach that we've taken with our clients, and we've got a lot of very happy investors to date," says Mawhinney.
Mawhinney continues, "our investment strategy has been to really work primarily with growth companies. Our portfolio now extends to nine different countries, most of our interests are actually overseas; we're certainly not geographically just focused in one target area, so we are very well-diversified from that perspective. And a lot of our investment strategy more recently has actually been in the provision of credit to businesses that are in the business of providing credit... we've proven the model here works in Australia, and it's a brilliant platform for us to now go and do this in the overseas markets too."
He concludes, "because we're in the business of providing loans or credit out to some of our existing portfolio, the demand is literally in the hundreds and hundreds of millions. So we are very much focused on a) continuing to raise capital, b) continuing to ensure our investor returns are met. I'm pleased to say that since inception of IPO Wealth, we've had a 94.6% retention rate, we've never had to dip into our cash reserve, all redemptions have always been met on time, and our distributions have always been paid on time. We're now providing monthly distributions as well, which has been a big win for a lot of our investors."