Lifeplan in talks with fund managers

Lifeplan Financial Group has begun discussions with two fund managers with a view to a merger or acquisition within the next few months.

Lifeplan managing director Chris Wright says the South Australian based group is currently in talks with a group in South Australia and one in Victoria.

Wright did not reveal the names of potential merger or acquisition targets, citing a a confidentially agreement between Lifeplan and one of the groups. However, he did says the group has embarked on due diligence with one of the managers.

"We are just having a look at this stage. There is a confidentiality arrangement in place and there has been information given to us so we can do an assessment," he says.

"We hope to have something in place in the next four or five months."

Wright says if the talks are successful, it will be the fourth merger for the group. In April last year the group took over a Stateguard, former Victorian-based funds manager. The group has also merged with Lifeplan in Victoria.

"We've have already had two mergers, we would like to do another two in the next four months," he says.

On top of the merger plans, Lifeplan is set to roll out three new products in the new year - an income fund, new insurance bonds and an education savings product.

Lifeplan also announced it doubled its after-tax profit from $2.9 million to $5.8 million for the 1999-2000 financial year. At present the group has more than $848 million in funds under management.