Tower picks up more Beacon ahead of listing
Tower has increased its shareholding in master trust, Beacon Investment Management after it bought out the shareholdings of Grosvenor Securities.
Tower was already the controlling shareholder and the purchase increases its position to 30 per cent with Kevin Wyld Financial Services as the remaining shareholder on five per cent.
The remaining 65 per cent has not been issued and the reorganisation paves the way for the issuance of this part of the company as Beacon Financial Planners Shares.
According to Wyld dealer groups recommending investments in Beacon funds would be able to apply for Beacon Financial Planners Shares.
The shares will provide returns to those planners who held shares as a result of recommendations made into the master trust with the returns from the shares calculated on a performance basis
Wyld says the group had not yet decided on when the shares would be available but was working on increasing the underlying value of the company.
"The split for advisers and dealers is 65 per cent and is quite generous given the recent sell outs where advisers have not shared in the spoils.This is a way for advisers to be part of another leg of the business as they are not funding a product but a service," Wyld says.
"The shares will be issued when the time is right and that should be when the funds under management have reached a higher level. But it is a vehicle that advisers can benefits from with dividends expected in the next 24 months."
Beacon currently has $60 million in funds under management, which has grown from $27 million in early January this year.
According to Wyld the company expected a further escalation in funds growth as inflows had doubled over the previous quarter due to increased support from dealer groups and planners.
Wyld also says Beacon will increase its services prior to July 2001, with additional fund managers and products and a new custodial share service.
AUTHOR
Jason Spits
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