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News
www.financialstandard.com.au 4 October 2022 | Volume 20 Number 19
Blue Orbit signs distribution deal Hillcrest Strategic Partners will now distribute the Blue Orbit Asset Management Global Small Cap Systematic Alpha Fund. According to Blue Orbit, the agreement follows a comprehensive process to expand its distribution capabilities. “Hillcrest’s boutique, client centric approach is highly aligned to Blue Orbit’s core values and purpose- to manage funds the way they will be managed in the future,” Blue Orbit said. Hillcrest is a Melbourne-based firm founded by Alistair Dunne and Damian Craven last year. The firm leverages Dunne’s experience in distribution roles with the likes of UBS Global Asset Management and BT Investment Management, as well as Craven’s experience with Macquarie Bank and Magellan Asset Management. The two previously worked together at Contango Asset Management where Dunne was head of distribution and Craven was head of retail. “Alistair Dunne and Damian Craven bring a wealth of experience in establishing trusted, longterm relationships with financial advisers, wholesale investors and research houses,” Blue Orbit said. “This is a significant appointment for Blue Orbit as we look to expand and educate more investors about our investment capabilities.” The Global Small Cap Systematic Alpha Fund was launched in October 2021 to wholesale investors. fs
Former adviser pleads guilty Cassandra Baldini
Former financial adviser John Wertheimer pleaded guilty to charges surrounding unauthorised client transactions in Perth Magistrates Court. Wertheimer pleaded guilty to one charge of providing a financial service on behalf of a person who carries on a financial services business while unauthorised to do so. He also pleaded guilty to one charge of engaging in dishonest conduct in relation to a financial service. Previously, Wertheimer was a financial adviser under his own company, John Wertheimer & Associates Pty Ltd, before appointing Picture Wealth Advisory Pty Ltd to service a group of clients. ASIC said in May 2020 he made 48 unauthorised transactions on the Netwealth trading accounts belonging to 36 clients of Picture Wealth. Those transactions were processed without the knowledge or authorisation of either the clients or Picture Wealth. The regulator added that between May and July 2020, Wertheimer also lodged five investment instruction documents with Netwealth that provided directions to deal with financial products on behalf of Picture Wealth clients. Those documents contained forged signatures and were prepared and lodged without the knowledge or authorisation of Picture Wealth and four clients. At the time of offending, Wertheimer was not authorised by Picture Wealth or any other AFSL to provide financial services to clients. The first charge carries a maximum penalty of five years imprisonment, the second is 15 years. fs
01: Peter Wilson
managing director HarbourVest
HarbourVest Partners opens doors to Sydney office Jamie Williamson
H
The quote
We are pleased to announce the expansion of our global network with the opening of our office in Sydney.
arbourVest Partners has opened a Sydney office, to be led by a former Challenger and AMP Capital executive. The private markets specialist firm has been working with institutional and private wealth clients in Australia for more than three decades, but this marks its first local office. HarbourVest said it has seen increased appetite for its investment solutions in Australia, driving the need for the on-the-ground presence. To date, HarbourVest has raised close to US$7 billion in Australia and New Zealand. “The Sydney office is fully integrated into the firm’s global network, providing clients with seamless access to primary funds, secondary transactions, direct co-investments, real assets and infrastructure, and private credit,” HarbourVest said. The office will be led by Warwick Mancini who is currently HarbourVest’s principal, investor relations in Hong Kong. Mancini will be responsible for the business development activ-
ities and client relationships in both Australia and New Zealand. Before joining HarbourVest in 2019, Mancini was a director at Challenger Investment Partners for more than six years. Prior to that he worked in hedge fund strategic services at Credit Suisse and also served as head of investment specialists, unlisted assets at AMP Capital. “We are pleased to announce the expansion of our global network with the opening of our office in Sydney,” HarbourVest managing director Peter Wilson 01 said. “The establishment of a local Australian presence reflects the significant growth of this region as well as the increased interest in the alternative assets classes we observe among investors in Australia and New Zealand.” He added that the firm is at an exciting stage in its evolution, growing its capabilities across Asia Pacific where it already has five other offices. The Sydney office marks the sixth in the region and 13th globally. fs
Ban overturned, to face retrial over Mayfair 101 debacle Mayfair 101 managing director James Mawhinney has had his 20-year ban overturned and will return to the Federal Court to have his case reheard. The Full Bench of the Federal Court said ASIC’s case against Mawhinney lacked procedural fairness as the regulator didn’t seek certain findings of contraventions which were later relied on by the presiding judge in handing down the ban. Mawhinney has also been awarded indemnity costs as a result. A retrial has been ordered and interim injunctions imposed on Mawhinney in August 2020 have been reinstated. These restrain him or any company he is involved in from receiving or soliciting funds in connection with a financial product; advertising or promoting a financial product; and moving any assets received in connection with a product offshore. The Federal Court said Mawhinney’s case is “very exceptional” and acknowledged that it “involves issues concerning the need for protection of the public from potentially serious harm”, ASIC said. It also said that, in the initial
trial, ASIC was operating under what it now accepts to be a mistaken view of the law. Commenting, ASIC deputy chair Sarah Court said the regulator will consider the judgment very carefully and evaluate its next steps. “ASIC took this case to protect the public from the risk of significant financial harm arising from what we believed to be serious misconduct. Mayfair, under Mr Mawhinney’s direction, marketed high-risk products as low risk. Almost 500 people invested in the Mayfair 101 group and they are still owed a total of approximately $211 million,” she said. Meanwhile, Mawhinney said he is grateful of the outcome. “This is a significant step forward for our noteholders who have had their lives turned upside down by ASIC’s misguided enforcement actions,” he said. Mawhinney said his legal team has commenced work to contest the case in the High Court, rather than have it remitted back to the lower court. Roberts Gray Lawyers said they are committed to clearing Mawhinney’s name. fs
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