AWM merger to create planning behemoth
The new merged entity between Australian Wealth Management (AWM) and Select Managed Funds (SMF), collectively with its “affiliates”, will have close to 10 per cent of all the financial planners in Australia according to AWM chair Robert Thomas.
“AWM already has close to 160 planners, and Select, through their SMF Investment Management and Lynchpin dealers, have around 110, so we’ll have close 370 planners in total.
“But when you consider our affiliates Select have a 20-30 per cent stake in DKN for example, we will have close to 1,500 advisers,” Thomas said.
Thomas’ revelation comes a day after the listed AWM, which owns the Bridges financial planning dealer group, announced it will merge with Select, which is also a platform provider and fund of fund investment manager.
The merged entity will retain the name AWM, whose current chief executive Andrew Barnes will leave the group after the merger is completed in around May or June.
Current Select managing director Chris Kelaher will be chief executive of the merged entity.
Select currently has funds under management of close to $7 billion.
The new merged business will have funds under management, administration and advice of $22 billion, making it one of the top 10 Australian fund manager/platform providers, and placing it on par in terms of size with St George owned Asgard Investment Management.
Based on current share prices, the merged group will have a market capitalisation of $840 million.
It will be 53 per cent owned by existing AWM shareholders and 47 per cent owned by existing Select shareholders.
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.
