Aust master trust powers UK market
Australian-based ObjectMastery is on-target with the number of UK independent advisers it has signed up for its Transact master trust in its first year of operations.
The company has signed up 183 advisers to use the service and now has $A61 million under administration, according to general manager Ian Craig.
"We are way over-target for the number of advisers we have signed-up and this will mean the dollars will now start to flow into the master trust," Craig says.
The company was the first to launch the master trust concept in the UK market, which still doesn't have the sophisticated financial planning operations of Australia.
When launching Transact a year ago, Craig saw no point in joining the crowded Australian market and chose to go for a similar market, but one where there was no competition.
The founders of ObjectMastery have their roots in Navigator. Craig says the UK operation is tracking remarkably similar to the Australian product.
"Like Navigator back then, we are kicking off with something new," he says. "And to have more than $A61 million means we are ahead of where I was with Navigator at the same time of its life."
One of the keys to the success of Transact has been the deal signed with the Association of Investment Trust Companies, which has boosted the number of enquiries from advisers wanting to use the system, Craig says.
The next stage of the master trust development is to badge it for dealer groups. The company has 92 dealer groups using the master trust and Craig says the first badging deal will be signed shortly.
"We sees significant growth for Transact coming from the badging operation in the next year," says Craig.
He says another encouraging fact from the first year of operations is that the clients are larger investors rather than small ones. The average UK client has $A73,500 under administration with Transact.
Craig says the company is expecting competition from major financial services suppliers some time, but believes his company's inaugural position will stand them in good stead.
"Our year two growth will be a curve, but we have set realistic targets and a lot of the hard work has now been down," he says.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
