AustChoice breaks $500 million barrier
AustChoice Financial Services is predicting to hit the $1 billion of funds under management barrier this financial year, says managing director Roger Gumley.
AustChoice Financial Services is predicting to hit the $1 billion of funds under management barrier this financial year, says managing director Roger Gumley.
The company has just reported breaking the $500 million barrier last month. This has come from the 52 adviser shareholders that make up the financial co-operative.
“AustChoice’s success confirms recently published research predicting the strong trend of financial planners breaking away from institution-controlled dealer groups and forming themselves into co-operative associations,” Gumley says.
The co-op is 80 per cent owned by its adviser groups, with advisers putting almost all of the funds under management into the AustChoice master trust, which is administered by SMF Funds Management.
To expand the product range, Gumley says the co-op has added Challenger life annuities and the BT Portfolio Services wrap account to the line-up.
“Our relationship with BT will now allow us to look at the global trends in back office operations and incorporate those ideas into our operations,” Gumley says.
Part of the key to gain access to wider services is achieving scale, says Gumley.
“Independent financial planners, through economies of scale achieved by operations such as AustChoice, will increasingly determine the style, pricing and distribution of managed investment products and services,” he says. “Traditionally this has been the domain of the institutions.”
The co-op is expected to make a pre-tax profit of $2.1 million in the 2000 financial year, he says, and this is expected to rise to $4.1 million by June, 2001. It is still the intention of AustChoice to float by August 2002, Gumley confirmed.
Recommended for you
While the last several months have seen increased market volatility, particularly in the US, advisers said there are multiple reasons why there has been an increase in defensive asset flows.
Scarcity Partners believes the dynamics playing out in the managed account and outsourced chief investment officer market are “here to stay” based on positive developments in financial advice.
Former executive chairman of failed stockbroker BBY, Glenn Rosewall, has been charged with aiding, abetting, counselling or procuring BBY’s dishonest conduct in relation to a financial service.
Fidelity International research has revealed Australian investors are significantly more optimistic about the market outlook and feeling more comfortable than their APAC peers, despite ongoing market volatility.
