APT set to renew play for AM Corp investors
THE Australian Policy Traders (APT) group is set to make another grab for investors wanting to exit AM Corporation’s troubled Diversified Traded Policies (DTP) fund.
APT, headed by managing director Brad Traynor, offered a cash rebate of between 2.5 and five per cent to investors who chose to exit the AM Corp fund at its August redemption window and invest instead in direct traded life insurance policies offered by APT.
It is understood more than $20 million flowed out of the AM Corp fund at the August exit window, with APT expecting to pick up between $7 million and $10 million worth of this business.
APT has now extended its rebate offer to investors who choose to pull out of the AM Corp fund at an upcoming December redemption window.
In June, AM Corp revealed it had restructured the DTP fund into a five-year, fixed-term product after a tumultuous period when the group was forced to shut the fund off from investors to avoid a potentially lethal run on its assets.
AM Corp has given investors the option to exit the fund before the fixed five-year time frame at specified redemption windows — such as those in August and December — but has warned they may be hit by significant discounts on the value of their investments.
Money Managementrevealed in September that both the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) were investigating AM Corp ’s conduct in relation to the DTP fund.
Traynor says APT will be marketing the rebate offer directly to financial planning dealer groups over coming weeks.
He says APT has also negotiated a deal with AXA’s Summit master trust that will allow financial planners to roll investors out of the AM Corp fund and into APT traded policies through the Summit platform.
Recommended for you
ASIC has cancelled the AFSL of a Perth financial services firm following payments to its clients by the Compensation Scheme of Last Resort after a failed managed investment scheme.
Bravura chief executive Andrew Russell has announced he will be stepping down from the company, just under two years after his appointment.
Financial advice businesses with a younger, wealthier client base are enjoying higher valuations and increased attention from potential buyers than those with older clients.
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.