Private label boosts Sealcorp bottom line
Sealcorp’s Private Label business, the tailored master trust Sealcorp offers to large dealer groups and institutions, has had a windfall gain, adding to the full year profits of Sealcorp parent, St George.
The business grew by over 80 per cent in the year to the end of September, taking its total funds under administration from $1.27 billion to $2.31 billion.
The growth was spurred by the continuing expansion of the Private Label’s longest serving client, AMP owned dealer group Hillross Financial Services, and the addition in January of its newest client, William M Mercer.
The Private Label master trust, launched in 1997, allows planning groups and institutions to fully replicate Sealcorp’s flagship master trust, Asgard, but also leaves them with the flexibility to badge and customise the product as they see fit.
The strong growth in the Private Label business follows a solid performance by Asgard itself, which now has $9.5 billion under administration, confirming it as the second biggest discretionary master trust in the country.
The results helped Sealcorp achieve a total growth rate in funds under administration of just under 19 per cent for the year, and contribute almost $120 million in fee revenue for St George.
Last week, St George executive chairman Frank Conroy announced a $336 million profit for the bank, up 17.5 per cent on the previous year, part of which he attributed to the ability of Sealcorp to develop niche solutions for key market segments.
Sealcorp director of distribution and sales Dan Powell says the group is anticipating continued strong growth right across its master trust range over the next 12 months.
“With the private label business, we have enormous expectations, and under Asgard, we are looking at a growth rate in the order of 16 to 20 per cent,” he says.
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