Aviva takes stake in Queensland firm
Aviva has continued to boost its investment in financial planning firms, taking a 25 per cent stake in Queensland-based Infocus Wealth Management.
Infocus is based in Maroochydore and has $1.2 billion in funds under advice.
Aviva chief executive officer Allan Griffiths said discussions with the group had been going on for some time, and the minority shareholder stake was in line with similar investments the company had made.
“I think if you buy 100 per cent of a planning firm the people who made the business lose interest, and then you have nothing,” he said.
“Today, with all the issues surrounding transparency for the consumer, minority stakes are a better outcome, and it also means the people who created the business remain focused.”
Infocus was a Navigator client, but drifted away after problems with the Planit software in 2001.
“Thanks to a dedicated BDM [business development manager] in Queensland, we kept talking to them and the relationship was invigorated,” Griffiths said.
“Infocus is back using Navigator and have been for some time.”
The move comes after Aviva took a similar stake in Financial Technology Securities and increased its stake in PIS.
Griffiths said the Infocus investment complemented the other two groups, as it operated a franchise model that is different to the other two investments.
“It is not a direct competitor to the other groups and we are seeing these businesses sharing information on how they run their operations,” he said.
“We have formed a lose group of about eight practices that meet to discuss issues in the industry. The next meeting will be early next year.”
Infocus managing director Darren Steinhardt said the new partnership with Aviva would enable both organisations to tap into resources to build services to clients.
“We look forward to a closer relationship with Aviva and to building on its product and technology expertise,” he said.
Griffiths said the company was in discussions with another four financial planning organisations about taking minority stakes, although no deal was imminent.
“The key to these types of deals is cultural fit, and unless this is achieved it will end in tears,” he said.
“We will only do deals that will work.”
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
