Centrepoint Alliance targets growth across all 3 adviser streams
Centrepoint Alliance is looking to drive growth via expanding all three streams of advisers within the business as it moves up to third place in licensee size.
In its annual general meeting on 15 November, it shared how it wants to grow its licensed, self-licensed and salaried advisers.
It currently has 549 authorised representatives, 203 self-licensed firms and 825 advisers, plus 19 salaried advisers who came across with the acquisition of Financial Advice Matters in December 2023.
These numbers mean Centrepoint Alliance has risen up the licensee rankings to stand at third, behind AMP/Entireti and Count. Its market share has similarly increased from 2.4 per cent three years ago to 4.9 per cent.
A broker note shared earlier this year stated Centrepoint had the potential to sneak up behind other licensees who were distracted by M&A activity.
“The majors are distracted – AMP, Insignia has integrated MLC, banks have all fled and even the high-quality merger of Diverger and Count will keep them internally focused,” the Veritas note said.
“Centrepoint operates in a market with major competitors struggling to hold onto advisers and many distracted by various issues. We believe Centrepoint is far better able to recruit and retain advisers than others.”
Looking into FY25, it is seeking organic growth on the licensed and self-licensed offering to maintain scale, while on the salaried adviser side, it wants to acquire “corporatised” firms to obtain margin.
Chief executive John Shuttleworth said: “The message I want to provide is we are just getting started. Our growth strategy is focused on margin expansion and annuity revenue, enabled by our strong distribution network of 1,374 advisers.
“Our licensee business is well-positioned to capture more advisers in the market. With market-leading offerings in both licensed and self-licensed, we will benefit from the recent M&A activity which has historically created an environment of increased switching and an opportunity for recruitment.
“Having acquired and successfully integrated Financial Advice Matters, we are seeking to grow the salaried advice business organically and through further acquisitions. This business currently represents 30 per cent of our earnings and acquiring the right businesses at the right price will create significant future earnings growth.”
With the focus primarily being on organic growth, chair George Chmiel noted Centrepoint is “actively screening” for strategic acquisitions that will enhance the firm’s financial and strategic performance.
Shuttleworth also touched on the firm’s asset management division which has typically been a drag on its earnings but now has $330 million in managed account funds under management (FUM).
“While it has taken longer than anticipated to turn the business around, largely due to the time taken to secure distribution to key partner platforms, we are now seeing increased adoption of the portfolios with distribution on HUB24, Macquarie and Expand.”
Finally, its IconiQ investment platform went live in October, and the superannuation and separately managed account part is scheduled to go live in December, offering a broad range of diversified portfolios contracted by fund managers and asset consultants.
A partnership with FNZ, it will empower financial advisers to manage clients’ superannuation and investment portfolios for a base administration fee of 18 bps.
AUTHOR
Laura Dew
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