Western Pacific Financial Group is looking to expand its financial planning and investment operations after completing $50 million of asset sales and buying out its founding shareholders.
Western Pacific Financial Group is looking to expand its financial planning and investment operations after completing $50 million of asset sales and buying out its founding shareholders.
Chief executive Geoff Pritchard said the Perth-based group was in final discussions to acquire financial planning businesses in Sydney and Melbourne.
Its aim was to double the number of financial advisers to 100 and widen the group’s geographic spread beyond Western Australia and Queensland.
Mr Pritchard said other changes included the planned collocation of six existing financial planning offices at a new site in Osborne Park and the expansion of its investment management business.
Western Pacific has an increasingly rare business model, based on its independence of the big banking and financial services groups.
Its mix of financial planning and investment management activities also sets it apart from most other dealer groups.
Mr Pritchard, who joined Western Pacific last May, said this mix had been part of the group’s culture since it was founded in 1985.
The asset sales, completed in December, comprised a 28 per cent shareholding in the listed Acumen Capital Securities, since renamed Multiplex Acumen Property Fund, and a 20 per cent shareholding in the Symetry master trust, now wholly-owned by the Commonwealth Bank.
Mr Pritchard said Western Pacific accounted for about half the $1.2 billion administered through Symetry.
He added that the Commonwealth Bank planned to make a significant investment in Symetry, which would continue to be used by Western Pacific.
In addition, the group plans to use Asgard’s administration platform following the signing of an agreement this month.
Mr Pritchard said Western Pacific was reviewing its shareholding in boutique fund manager MMC Asset Management but was committed to its interest in Select Asset Management, a joint venture with a Swiss fund management group.
The proceeds of the asset sales have been used in part to buy out founding shareholders, including Ian Hodgkinson and Rex Bevan.
Mr Pritchard said the group had been able to move to a 95 per cent ‘revenue shareholding’ structure with its investment advisers, up from 65 per cent.
Senior management, including Mr Pritchard, hold the residual 5 per cent equity.
The group’s funds management arm has launched three products over recent months and has $100 million under management.
Mr Pritchard said Western Pacific would assume management of a fourth existing fund – a $50 million fixed interest fund – from MMC.
Yet another recent initiative was the incorporation of its investment consulting arm, which has been running for about 12 years but is now structured as a subsidiary of the dealer group.
Mr Pritchard said the consulting business currently advised two superannuation funds with combined assets of $175 million.
“The next major initiative in our growth plan will involve leveraging our scale in the risk business and finding a partner who can assist us achieve our growth objectives in this area in addition to continuing our expansion plan in Sydney and Melbourne,” he said.
SNAPSHOT
- Raised $50m from asset sales.
- Bought out of founding shareholders.
- Signed agreement with Asgard.
- Incorporated investment consulting arm.
- Acquiring financial planners in Sydney and Melbourne.
- Expanding investment management arm.
