New Zealand planning giant is born

A new alliance of eight financial planning firms has launched itself onto the New Zealand market creating one of the largest advisory groupings in the country.

A new alliance of eight financial planning firms has launched itself onto the New Zealand market creating one of the largest advisory groupings in the country.

With an estimated combined $240 million under management, the LodeStar Group jumps into the top five planning businesses in the country.

However, one of the group’s members, Craig Myles, says LodeStar hasn’t set any tar-gets for growth but is only concerned with occupying its niche in the marketplace in the entire country.

“It’s interesting that LodeStar is the first national financial planning group to set up in New Zealand for many years,” Myles says.

“Most groups don’t have national coverage but we are represented in all the major population areas.”

He also says as LodeStar is owned by the member companies, with a further stake held by New Zealand Funds Management, profits from the business will remain in the country.

All the LodeStar firms use New Zealand Funds Management’s Strategic Investment Service (SIS) back office system.

Myles says SIS operates differently from a master trust because it concentrates on cli-ents’ investment strategies rather than just listing various products.

“The system allows us to work with our clients to achieve their objectives with more certainty,” Myles says.

“There is more clarity of information and accountability. What we tell our clients they can expect has a 95 per cent probability of occurring.”

He says the LodeStar association with New Zealand Funds Management does not compromise the ability of members to recommend any product they judge suitable for their clients.

“There are no restrictions. If I thought there was any compromise, I wouldn’t have signed up.”

While all current members share the SIS system, Myles says it is not the key require-ment for any firm wishing to join the network.

“It may not be essential for anyone wanting to join us to be using SIS initially as long as there is commonality of standards,” Myles says.

“I expect more people will want to join LodeStar. I’ve had a number of calls already.”

Myles says trends in the financial services industry suggest most planners will have to be in some kind of grouping if they are to thrive in today’s marketplace.

“As financial planning continues to move from a cottage industry to a full profession it will require things that individuals alone can’t provide - such as expensive technol-ogy and a strong brand in the marketplace.”

“Planners will have to decide soon which group they want to belong to.”