Western Pacific lands slice of Snowball

financial planning dealer group

21 October 2005
| By George Liondis |

Perth-based dealer group Western Pacific has purchased a considerable stake in listed financial planning company Snowball Financial, a move that will give it a strategic foothold in the eastern states, and allow it to spread its fledgling funds management division.

As part of a deal that will help Snowball fund its own expansion plans, Western Pacific has paid $1.995 million for a 9 per cent interest in Snowball.

The move came after Snowball issued a $3.4 million new capital raising in order to finance the $5 million cost of its decisions to take a 25 per cent stake in Queensland Teachers’ Credit Union (QTCU) Financial Planning and buy Outlook Financial Planning, the advice arm of the Melbourne-based MECU credit union.

Western Pacific’s push to snap up more than half the new capital on offer will give the dealer group a grip on the financial planning markets in Sydney and Melbourne, where Snowball has a considerable presence.

It will also provide an outlet to expand its funds management arm, Western Pacific Asset Management, which is currently offered only through Western Pacific advisers, but could be extended to Snowball affiliated dealer groups.

For Snowball, the deal to buy Outlook and a stake in QTCU Financial Planning will give it exclusive access to 196,000 credit union members with a combined total of $530 million under advice for five years.

Outlook has $230 million under advice. QTCU’s financial planning arm has over $300 million under advice, from a total of 91,000 members.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 2 weeks ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 week ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

4 weeks ago

The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day....

6 days 10 hours ago