Fundamental – Issue eight

Thank you for your support throughout the year! As 2025 draws to a close and we navigate the ever-evolving investment funds landscape, we are excited to share our insights on significant issues that are set to shape our industry.

Our final edition of Fundamental for the year kicks off with an interview with Hans Pearson, the CEO of StoreLocal, about its $440 million sale of a majority interest to the world’s biggest asset manager BlackRock and Hans shares their growth strategy moving forward.

We find ourselves in very interesting economic times. Many in the industry say we have reached an inflection point in the property cycle providing green shoots for property fund managers to re-enter the market with improved acquisition conditions. This is coupled with a squeeze on private credit with quality deals being harder to find and target returns under pressure from increased competition. There is also the prospect of banks coming back into this space to chase growth. However, inflation continues at unacceptable levels, the next cut is further away than many thought it was only a few weeks ago and some are even speculating rates will rise before they are reduced. 

The last thing our industry needs right now is the prospect of more regulation that increases compliance costs and diverts focus from productive growth activity. Unfortunately, this is exactly what the funds management industry faces. ASIC has published its roadmap to ‘unlock opportunities and tackle emerging risks’ in Australia’s public and private markets. 

ASIC’s recommendations include re-visiting increasing the financial thresholds for the wholesale investor test which has already been extensively investigated by a joint parliamentary committee that concluded there was not enough evidence to suggest a change was needed. ASIC has also recommended all wholesale funds require annual audits which would be potentially devastating for small funds and start-ups. 

While ASIC’s review of private credit funds has generally been welcomed by industry as a way to promote more transparency and consistency, and ASIC’s intention to provide more guidance is a good step forward, there is concern that more untargeted regulation across all wholesale funds could be counterproductive. 

On top of all this, many fund managers are bracing for the new anti-money laundering and counter-terrorism financing (AML/CTF) reforms that are due to come into effect in March next year. 

The HW Funds team is striving to keep you abreast of these latest developments so that you can navigate the challenges effectively and take advantage of opportunities. Fund managers and industry stakeholders should closely monitor the progress of these proposals.

We look forward to hearing your thoughts on these topics and exploring how we can assist you to achieve your goals.

With best wishes to you and your family for a safe and happy holiday season from the HW Funds team.

Cheers!