Fiducian on the acquisition hunt

Fiducian Portfolio Services has embarked on an aggressive financial planner and dealer group acquisition policy, after posting a return to profitability in 2003/04.

Fiducian is currently in acquisition talks with “a number of quality financial planners, both individuals and high profile dealer groups”, according to managing director Indy Singh.

The announcement accompanied Fiducian’s posting of a 29.6 per cent increase in funds under management for the year to September 30, in line with group forecasts.

The company has recovered from its trading loss in 2003, reporting an after-tax profit of $185,000 for the year to June 2004, as well as an operating cash flow of more than $778,000 in the 2004 September quarter.

Singh also announced Fiducian is to use surplus funds to buy back up to 1.2 million shares on the market, and anticipates increasing dividends to shareholders during the coming financial year.

Fiducian is in an “extremely strong” position to “capture all elements of the value chain”, he said, having developed its own administration platforms, software, distribution network and funds management products.

He said he “remains committed to building a specialist financial services business that has strong competencies in financial planning, investment management and IT systems for both advisers and administrators. ”

“We’ve achieved a world class IT solution for financial planners and their clients, while giving ourselves full independence in service delivery.”

Fiducian funds have returned a “solid performance in comparison to similar funds,” according to Singh.

“The 'Manage the Manager' investment process has proven itself, ensuring our funds are consistently ranked in the first and second quartile for terms of two years or longer.”