The ASIC report into death benefit claims revealing the devastating impact of poor industry practices on grieving Australians has again highlighted the pressing need for change. While some funds have taken up the cudgels, others are still playing hardball on improving their service offering.
A Retirement Income Covenant obligation notwithstanding, there is still a paucity of these complex products on offer. The Advice Through Superannuation draft legislation might offer a way forward.
AWI cements new portal purchase
Australasian Wealth Investments has confirmed the purchase of a second managed funds purchase and advice portal, agreeing to pay up to $12.5 million for YourShare, a small business based in the NSW southern highlands.
The deal was foreshadowed in a presentation coinciding with AWI’s annual general meeting last month, at which was decided to turn the company from an LIC into a traditional listed stock with one board of governance. It follows the purchase of InvestSmart, from Fairfax for $7 million, a similar portal with a different demographic.
YourShare is based in Mittagong and has 14 staff. AWI intends to maintain that operation under its business model which allows for separate, either wholly or partially owned businesses, continuing with a certain level of operational independence. It has annual revenues of $5.2 million and funds under administration of $915 million.
In a statement last week, AWI said: “…”[AWI] now owns two of the largest online self-directed financial services portals in Australia, with combined FUA of $1.6 billion over 40,000 invested clients and more than 300,000 subscribers to its website, in addition to an undiluted 49.6 per cent share of van Eyk Research, which has $1.2 billion in FUM.”
The purchase price is made up of $10.5 million cash and another $2 million subject to a hurdle to do with YourShare’s NTA.
