Strategic hunts master trusts

Strategic Investments Australia, the new holding group of the Strategic Super Master Plan, is performing due diligence on two small master trusts with a view to acquisition

Strategic Investments Australia, the new holding group of the Strategic Super Master Plan, is performing due diligence on two small master trusts with a view to acquisition.

Strategic Investments Australia director James Burkitt says the group is currently in negotiation with seven master trust funds, and expects transactions with two of the seven to be completed by Christmas.

Burkitt says the master trusts being considered have between $30 million and $500 million under management.

The group is looking to add to effort over the past six months when Strategic Investments Australia, previously known as Associated Planners Management, has increased funds under administration from $282 million to $350 million.

Earlier this year, a consortium of investors including Burkitt purchased 75 per cent of Associated Planners Management, the holders of the Strategic Super Master Plan, from the Associated Planners Group.

The consortium, known as International Master Fund Management, is also made up of Zurich Australia, the Sydney-based Belville family, Mike Fitzpatrick from Hastings Fund Managers and Peter Dorrian.

Burkitt says since the change over, the master trust has been restructured with a number of new fund managers added to the menu. Changes include a move away from balanced fund managers to specialists and the appointment of PriceWaterhouseCoopers as asset consultants.

Technology has been reviewed, with a developing technology platform in progress and due to be rolled out by the end of next March. Full Internet capabilities are already in place a switching option will also be available online from December.

“The outcome of investment restructuring will be improved performance and a reduction in fees,” Burkitt says.

He says advisers have recently been told the management fee would be reduced by an initial 15 per cent, with the expectation of a further15 to 20 reduction as the fund grows.

Strategic Investments Australia currently has about 200 financial planners on its books. Burkitt says the group hopes to broaden this number with the appointment of a technical support manager in the next few weeks, who will provide adviser support such as help with advising clients and also for planners growing their business.

“Providing support for planners is very important to us,” Burkitt says.