HSBC’s retail kingmaker gets kept
By Michael Bailey
CHALLENGER Financial Services has signalled it is serious about winning over more advisers, confirming that HSBC Asset Management’s head of distribution will join Challenger following its acquisition by the Kerry Packer-owned group.
Michael Lovett will stay in Melbourne but now report to Challenger’s Sydney-based head of distribution, David Asplin.
The purchase of HSBC’s Australian asset management business, and the retaining of Lovett’s “high profile with advisers”, would boost the recognition of Challenger in the retail market, according to Asplin.
“At somewhere like Navigator, previously we might have been just inside the top 10 of the fund managers they favour, but I think this acquisition will put us firmly inside the top five,” Asplin said.
Other dealer groups where the HSBC acquisition would assist Challenger were Professional Investment Services, RetireInvest and the other ING Australia dealer groups, Asplin said.
Meanwhile, Navigator, Macquarie Wrap, BT Wrap, IOOF, Skandia and Synergy have begun or will soon begin to offer a product investing in Australian shares outside the Top 300 for the first time, following their acceptance of the recently launched Challenger Microcap Fund.
The extremely limited capacity of Australian microcap funds means the Challenger product, managed by the small cap team of James Ring and Michael Courtney, will be closed when it reaches $100 million under management.
Navigator’s research manager, Stuart Fechner, said his team had jumped at the opportunity to offer Challenger’s product as it is expected to be shut off within 12 months.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
