SMF continues expansion with acquisition

Melbourne-basedSMF Funds Managementhas acquired small dealer group firm LynchPin Financial Services as part of its flagged strategy to boost distribution through either acquisition or alliance partnerships.

Founder and head of LynchPin Peter Richards will stay on in a consulting capacity over the next twelve months as the business, which has $400 million in funds under advice courtesy of its 42 authorised representatives across Queensland, Victoria and New South Wales, is incorporated into the group.

“The deal is part of our ambition to become a truly vertically integrated financial services company,” says SMF managing director, Christopher Kelaher.

According to Kelaher the group has a three tiered approach to the Australian market - platform, distribution and investment management.

In terms of platforms, the group’s flagship vehicle is the Spectrum platform, while the LynchPin deal will see it boost its distribution capabilities and add to its existing relationship withAustChoiceand a number of independent advisers. The group also fully owns asset manager, United Funds Management, which has over $1 billion in funds under management.

“The biggest difference between ourselves and our competitors is that we own and control groups along the spectrum which allows us to generate higher profit levels,” Kelaher says.

SMF has also recently established an administration support service - Sentinel Adviser Services - for those advisers it has a relationship with, and has a Hobart-based administration business with in excess of $1 billion of funds under administration.

The group is also in the throes of striking a deal with Mellon Global Investments that will see SMF increase its product range to the market.