Sealcorp fuels St George’s fire
St George’s wealth management business contributed almost 20 per cent more to the group’s profit before tax this year than in 2004, on the back of strong investment markets and solid fund inflows through its distribution networks, the company has reported.
Overall the bank’s profit was up 15.5 per cent on the previous year to $828 million and wealth management, which includes platform services, asset management, margin lending, insurance and financial advice, as well as St George Private Bank and Ascalon Capital Managers, delivered $151 million of this compared with $126 million in the previous year.
Sealcorp produced a 28.2 per cent increase in funds under administration to $23.4 billion. Sealcorp chief executive Geoff Lloyd said this was primarily due to fund inflows through the distribution network, supported by a trend towards retail funds invested via platforms, and the positioning and reputation of its Asgard master trust and wrap services.
Lloyd said approximately 20 per cent of funds had come through St George Financial Planning, and about 30 per cent from Securitor, with the balance flowing from independent financial advisers and wholesale dealer-to-dealer services.
“Our business model continues to provide a premium service to financial planners across their broader client needs. We’ve got a broad product footprint … We’re the most awarded platform in the market, so that service proposition together with the broad product footprint, together with our 20 years of history, that heritage puts us as a preferred provider,” Lloyd said.
Advance Funds Management grew funds under management by 54.8 per cent to $6.5 billion from $4.2 billion over the year, with $1.4 billion of this resulting from Advance having been mandated to manage a component of Asgard’s funds.
The fund manager also increased its number of strategic partnerships from 13 to 18 in line with its business model as a ‘manager of managers’.
St George grew its margin lending assets by $406 million to $1.6 billion.
Income from life and general insurance products also increased by 17 per cent over the year.
The private bank’s assets grew by 12.6 per cent, with deposits up 20 per cent and funds under advice growing to $296 million.
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