Fiducian Portfolio Services has laid down its plans for a listing on the Australian Stock Exchange.
Managing director Indy Singh says the group plans to list when its master trust reaches $2 billion in funds under administrations. He says the group aims to hit this target by June 2002.
Fiducian Portfolio Services has laid down its plans for a listing on the Australian Stock Exchange.
Managing director Indy Singh says the group plans to list when its master trust reaches $2 billion in funds under administrations. He says the group aims to hit this target by June 2002.
Singh says the plans for the group stands apart from other planned listings of fi-nancial planning amalgamations because it will have a solid base in a service backed up by funds under administration.
“This is not a scheme aiming at a quick buck,” Singh says.
Singh became one of the few to successfully list a financial services group on the stock exchange when he listed Le Fort in the early 1990s which included the Re-tireInvest planning group.
Fiducian was set up by Singh and AM Corporation about three years ago. While Singh and AM continue to own the vast majority (95 per cent) of the group, there are now 14 financial planning groups who have an equity stake in the business.
It is intended that by the time of listing, AM Corp will hold 25 per cent, Singh will hold 25 per cent and up to 25 financial planning groups will hold the remaining 50 per cent.
There are currently 11 financial planning groups with a stake in the group plus three Fiducian financial planning practices with shares. Some of the groups include Dominic Alafaci’s Collins House; Harold Bodinar’s Bodinars and Hattersley & Maxwell; and John Lawrence’s Financial Security. The increase in planners in the group has boosted funds under administration in the Fiducian master trust to $370 million at the end of October, a rise of 300 per cent for the year.
Fiducian will recruit a further 11 groups who will take an equity interest in the group before listing. Singh says the group is particularly interested in groups based in Adelaide or Brisbane but the most important ingredient is the quality of the fi-nancial planning business.
“We have set high qualifying standards for candidates. For example, they must have between $12 million and $15 million in turnover; established professional staff; up-to-date portfolio construction systems; appropriate professional member-ships; and above all total client focus,” he says.
Financial planning groups take a share in the group based on the income generated by their investment in the Fiducian master trust. This equity will be used to dilute the ownership of AM and Singh.
Planners also benefit from a number of other services offered by Fiduacian in-cluding training, research and a proprietary manage the manager fund.
