Connie McKeage

Wholesale SMSF solutions provider OneVue has purchased super trustee MAP Funds Management, a move OneVue has described as a strategic transaction ahead of its proposed listing on the Australian Stock Exchange (ASX) this year.

MAP chief executive Jenni Erbel said MAP and OneVue have been collaborating on the development of various products and investment options for members and clients since 2011, including a low cost super product which was released to market last year via the OneVue investment platform

“Combining the resources of MAP and OneVue will improve efficiencies and increase skills, capabilities and technology across the board,” Erbel said.

“Together we can create a stronger platform for future growth that will enable us to deliver more innovative and competitive investment options to clients.”

Erbel said OneVue works with a number of highly recognised domestic and global brands including Perpetual, State Street Global Advisors, Centuria Capital and BNP Paribas, and MAP strongly believes in OneVue’s highly experienced board, leadership team and staff.

“We are excited about the opportunities and greater capabilities we will be able to deliver through being part of a larger company, including a reduced administration fee for more than 90 per cent of members in the MAP Superannuation Plan who have a balance of over $10,000,” Erbel said.

As part of the transaction the MAP Trustee Board will undergo a slight restructure whereby a number of existing board members will be retained and new professionals will also be appointed.

“This will provide strong links to MAP’s history as well renewed vision for the future,” Erbel said.

OneVue chief executive Connie Mckeage said OneVue has been a major participant in the self managed super fund (SMSF) sector to date.

“While our focus on the SMSF sector will continue going forward, we want to ensure we have a role to play right across the superannuation sector and this transaction strengthens our position in the retail superannuation market significantly,” Mckeage said.

“Whilst each service and client segment creates a valuable opportunity for OneVue, we believe it is actually the interplay between the respective channels that creates the greatest value.”

Mckeage added that this latest purchase by OneVue would add to OneVue’s geographic footprint, with a location now in Brisbane as well as in Sydney and Melbourne.

The post OneVue purchases MAP Funds Management appeared first on AdviserVoice.

Paul Tynan

Irrespective of the countless articles that have been written and published on strategies to ensure that sales, mergers and acquisitions are successful and realise their potential, Connect Financial Service Brokers (Connect) CEO Paul Tynan is certain that the financial service industry as a whole will again get the process wrong in 2014.

“The financial planning sector has a 30 year track record of failed acquisitions which today is reflected in the loss of client value, advisers, management and capital investment written off”, said Paul Tynan.

Furthermore, this failure to achieve a successful outcome and get it right was not restricted to one segment of the industry – it was prevalent from the largest corporate to the small one person suburban practice.

Paul Tynan continued, “Large corporate businesses do not have a monopoly on failed transactions, I have also seen small businesses and individual financial planners make the wrong decisions based on their last BDM/PDM conversation or whoever has the biggest cheque book”.

For advisers, wrong decisions include joining a badly chosen Dealer Group, leaving the right Dealer Group, taking on an unsuitable partner, selling when they should not and list goes on.

Reflecting on his extensive experience in this field, Paul Tynan said that the people/businesses that make the wrong decisions have one or more of the following factors in common:

• Thinking only in the short term
• Lack of industry knowledge and insight
• Lack of networks and resources
• Did not have M&A experience or expertise
• Did not plan properly
• Focussed only on the bottom line
• Personal or unforeseen circumstances saw them rush to do the deal

Another critical factor can be attributed to those instances where the financial planner or dealer group principal is simply not mentally engaged in the process and as he / she wants to exit and move on as quickly as possible.

Paul Tynan said another reason for sale, M&A failure can be attributed to an overemphasis on the transaction and bottom line and not enough attention placed on the very important cultural and staff fit – the things that are hard to measure!

In the past buyers have focused on FUM or bottom line numbers and neglected to factor in the non-measurable issues such as:

• Key person risk
• Business culture
• Management issues
• Compliance
• Is the owner ‘ready’ for sale

These are the soft people issues that are so important to the success of any sale, merger or acquisition.

Paul Tynan also pointed out that Australian companies have a particularly bad track record with overseas acquisitions – again reflecting this lack of understanding and appreciation for the non transactional aspects of a business such as the impact of ‘cultural issues’ and has led to commercial disasters in this area.

Experience has confirmed for Connect that the best outcomes can be seen when firms have enlisted professional help to assist them throughout this process. The cost of engagement is a small price to pay compared to the loss of capital, clients, business disruption, etc.

Paul Tynan concluded, “Whether selling, merging or acquiring, it is important to understand that the process takes time in order to achieve the desired outcome and in many cases, the parties will only have a single opportunity to do it right.”

“So irrespective of size, businesses would be better off outsourcing their selling, merging and acquisition activity as the cost of engaging a consultant can never match the loss of shareholder capital and opportunity cost for bad decisions”.

The post Industry will again get sale, mergers & acquisitions wrong in 2014 appeared first on AdviserVoice.

Financial Index Wealth Accountants (“FIWA“ or “Findex”) has entered into a Bid Implementation Agreement (“BIA”) with high net worth advisory firm Centric Wealth Ltd (“Centric Wealth”), under which Findex has agreed to acquire all outstanding ordinary shares issued by Centric Wealth by way of an off-market takeover bid (“Offer”)[1].

Under the terms of the Offer, Centric Wealth shareholders will be entitled to receive 8.9 cents cash per ordinary share.

The Centric Wealth board of directors (“Board”) believes the Offer is fair and reasonable, and has unanimously recommended that shareholders accept the Offer, subject to there being no superior proposal. Centric Wealth’s directors have also agreed that they will accept the Offer with respect to any shares owned or controlled by them, subject to there being no superior proposal.

FIWA founder and chief executive officer Spiro Paule said the transaction would bring together two businesses with a strong focus on providing the highest quality financial advice for clients.

“The combination of the two businesses creates one of Australia’s largest, non-aligned financial advisory organisations,” he said. “We are both focussed on providing the best possible advice and solutions to our clients. We will be able to share respective areas of expertise and offer clients and employees a greater level of sophistication and opportunity.”

Centric Wealth chief executive officer Phil Kearns said the businesses have similar core values and cultures, geared toward providing the highest quality, non-aligned advice for clients.

“We have a strong alignment of values and culture within our respective organisations, and by leveraging each other’s processes we will continue to deliver on our client promise for many years to come. It’s also a win for our staff and shareholders and it will ensure we can develop and improve the service we currently deliver clients.”

FIWA will partner in the proposed transaction with KKR Asset Management, a credit business with $20.4 billion in assets under management that is an affiliate of KKR & Co. KKR provided acquisition funding and KKR will have an equity interest of approximately one-third in the merged group.

“We believe the combined strength of Centric Wealth and FIWA underpinned by the global reach and capability of KKR will create a new force in Australian wealth management,” added Paule.

“We are pleased to support the growth of the combined business and look forward to being a long-term constructive partner to Findex. This transaction further reflects the breadth and diversity of KKR, working constructively on complex transactions around the world,” said Jamie Weinstein, Member of KKR and Global Co-Head of Special Situations.

FIWA was advised by Jeff Singh of Chase Corporate Advisory.

—————–

The post Financial Index Wealth Accountants to acquire Centric Wealth appeared first on AdviserVoice.

John McMurtrie

Link Group (Link), Australia’s largest and fastest growing third party record keeping company, has cemented its market leadership in the superannuation administration space, today announcing the acquisition of Syncsoft, Australia’s leading software vendor for APRA regulated superannuation funds.

The move will enable Link to substantially expand its current client base of super funds who choose to outsource their superannuation administration, to include funds who administer in-house via the Syncsoft platform, as well as hybrid administration arrangements.

Syncsoft provides technology and software services through its leading Capital superannuation administration software. Designed to automate and streamline administration processes for major superannuation funds, clients currently using Capital include the $16bn Western Australian public sector GESB, $36bn UniSuper and Comsuper, the agency responsible for administering the major superannuation schemes available to the Australian Defence Force and the majority of Australian government employees.

The acquisition further builds on Link’s core administration offering to wealth managers and superannuation funds, with Link now providing administration support for over six million superannuation members on its platforms.

John McMurtrie, Managing Director of Link, said the acquisition builds on Link’s strategy to own and continually invest in platforms it operates.

“Syncsoft strongly complements our existing offer to superannuation funds, allowing us to not only broaden our family of clients across industry, public sector and corporate funds, but to have new conversations around our value added solutions with funds currently using the Capital software,” Mr McMurtrie said.

“Super administration is Link’s core competency and the addition of Syncsoft further increases our economies of scale and delivers the ability to service all funds – including those which currently retain administration in house on platforms and technology owned by Link.”

Responding to member demand

In addition to core member administration services, Link offers a range of value added services to funds including data analytics (via Empirics), financial advice (via Money Solutions), an integrated clearing house, and a Direct Investment Option which allows funds to offer members increasingly popular direct investment options such as the ASX300, ETFs or Term Deposits.

Mr McMurtrie said the ability to offer a robust and flexible administration infrastructure in addition to key value added services was now critical for funds as technology continues to advance and competition for members intensifies.

“Through joining forces with Link, Syncsoft will be able to continue enhancing its Capital offering by integrating the value added services provided by Link such as the effective management of big data, direct investment options and automated APRA reporting,” Mr McMurtrie said.

Syncsoft will continue to operate from its Melbourne office with all 78 employees joining Link. Rory Wainer, Managing Director and founder of Syncsoft, will remain in charge of the business while also expanding his role to leverage Syncsoft’s intellectual property across all of Link’s subsidiaries.

“We’re excited to have Rory, a true innovator and leader in financial services technology, join the Link family. His story is truly remarkable, starting Syncsoft in the 1990s with the mission of building a genuine scalable institutional wealth management administration platform.”

“Today it is clear he has achieved his mission and the company has remained at the forefront of industry solutions for over 20 years. We believe this is just the beginning as we partner with Rory to expand Syncsoft’s offering to an even wider audience, not just for superannuation but wealth administration across the globe,” Mr McMurtrie said.

This wider audience includes offering administration services globally including New Zealand and China where the Capital software has already been adopted due to its robust yet customisable nature.

Mr Wainer shared his excitement about the prospects of joining the Link Group: “Being part of the Link Group was the logical next phase for Syncsoft and Capital utilising the Group scale and capability to expand the Capital platform more rapidly than otherwise possible. We were impressed by Link’s culture and commitment to be a genuine industry leader through their investment in people and technology to deliver superior long-term outcomes.”

The post Link Group announces strategic acquisition of super software group Syncsoft appeared first on AdviserVoice.

Simon Ewing has been appointed as Head of Loan Syndications. Simon will lead the Loan Syndications team within the Corporate & Specialised Finance division.

Based in Sydney, Mr Ewing will report to the Global Head of Loan Markets, Lloyds TSB Bank plc, Ian Fitzgerald, and locally to Steven Mixter, Head of Portfolio and Balance Sheet Management.

The Loan Syndication team structures, advises, prices, executes and distributes multi-bank credit facilities. It has a global distribution capability with offices in London, Hong Kong, New York and Sydney with a team of 17 dedicated distribution professionals.

Prior to taking up this role, Mr Ewing spent 16 years in numerous syndicated loan market roles in both London and Sydney, with AIB Capital Markets Acquisition Finance, Mitsubishi Trust & Banking Corporation and JPMorgan.  He has also recently been appointed to the Asia Pacific Loan Market Association (APLMA) management committee.

Mr Stephen Skulley, Managing Director, Corporate &Specialised Finance, BOS International said:

“Simon brings a raft of new capabilities to the Australasian region including a new strength in underwriting.  His knowledge of local investors and his understanding of local markets will undoubtedly strengthen relationships with existing clients and pave the way for new opportunities in the region.”

“The appointment is a great first step in our strategy to build our product capability in order to service a broader client base,” Stephen said.

Joining Simon’s team is Angela Powell, Associate Director.  Angela was promoted internally from the Acquisition Finance team.  Angela has been with the company for five years and transferred back to Sydney from the London office in 2007.  Prior to this, she held roles at HSBC in the Global Markets division in London and with ING in both Amsterdam and Sydney.

The post BOSI strengthens local expertise in syndication market appeared first on AdviserVoice.

Centuria Capital’s (ASX: CNI), property funds management subsidiary, Centuria Property Funds (formerly Century Funds Management), has purchased a 10 level commercial building at 200 Creek Street, Brisbane for $37.7 million. The vendor of the property is Valad Core Plus Fund.

The building is 100 per cent leased to a mix of quality multi-national and Government tenants which include State Government agency Link Water, international environmental engineers BMT WBM and the multi-national Medtronic Group. The building has recently undergone a refurbishment program that included an extensive foyer and services upgrade.

Centuria has formed a new single asset unlisted property Fund to hold the asset and the forecast initial return is 8.75 per cent increasing to 9 per cent over the life of the Fund.

The acquisition takes Centuria’s property funds under management to $960 million.

CEO of Centuria Property Funds, Mr Jason Huljich said:

“We believe the Brisbane office market is an attractive counter-cyclical opportunity which will experience significant growth in the medium term, assisted by mining and infrastructure spending. 200 Creek Street is well positioned to ride out an initially soft leasing market with a strong weighted average lease expiry (over 5 years) and fixed annual reviews in excess of forecast CPI.”

“Investor interest in 200 Creek Street has been very strong and the offer closed heavily oversubscribed.”

“Centuria continues to pursue an aggressive strategy with regard to property opportunities which exhibit attractive income returns coupled with the potential for strong capital growth. Centuria is now looking at larger acquisitions in the $20 – $100 million range.”

The post Centuria backs QLD commercial property appeared first on AdviserVoice.

The Vision site is prominently located between Mary and Margaret streets and currently has development approval for a residential and commercial tower. The site is well positioned to capitalise on Brisbane’s strong commercial and residential growth prospects, with new A-Grade environmentally rated office space predicted to be in high demand in the coming years.

AMP Capital Investors Head of Opportunity Funds, Dale Phillips said; “This investment will provide an excellent opportunity for our investors as it provides our fund with an attractive opportunity to participate in the future development of the office component of the site. We are pleased to further build upon our relationship with Billbergia following our joint venture on the residential development at Wentworth Point in Sydney.”

The Billbergia Group is an Australian building and civil construction company which was established in 1987. Billbergia are an experienced developer, with a strong track record of large scale residential and mixed use developments.

SPP3 is a close ended, unlisted diversified fund that focuses on higher return/higher risk property opportunities in the Australasian property market.

The post AMP Capital backs Billbergia development of Brisbane CBD property appeared first on AdviserVoice.

MLC acquired a minority ownership stake in Meritum as part of its acquisition of Aviva Australia in 2009 and has now increased its ownership to 100 per cent.

Richard Nunn, MLC’s Executive General Manager of Advice & Marketing said, “Bringing quality financial advice to more Australians is an important component of MLC’s overall growth strategy and we are focused on attracting advisers to our network through support and investment.

“We are very pleased to be adding Meritum to our network of aligned advice businesses.”

Stephen Trist, formerly Executive Director for Distribution and Marketing at Aviva Australia, has been appointed to the role of General Manager, Meritum and Meritum founders Brian Dau and Theo Christopolous will continue in their current roles.

Mr Trist said, “Since our initial investment in Meritum, our two businesses have worked closely together. Like MLC, Meritum provides significant support to its advisers and their clients, and favours a conservative and client centric model.

“Having Brian and Theo committed to the group for the long term is also a great outcome. They bring continuity to the business and will be instrumental in maintaining the adviser service culture that Meritum is known for.

“The support of MLC will be important over the coming years, particularly in light of the upcoming period of change facing the advice industry. MLC brings both resources and expertise to the table and will help ensure Meritum remains a force in the advice market,” added Trist

Meritum was established in 2003 and has over 110 financial advisers across the country. It has more than $3.5 billion in funds under management and in excess of $45 million in annual insurance premiums inforce.

The post MLC purchases balance of Meritum Financial Group appeared first on AdviserVoice.

J.P. Morgan Treasury & Securities Services has today announced it has completed the successful migration of direct and master custody clients from ANZ Custodian Services. ANZ Custodian Services was acquired by J.P. Morgan in November 2009.

Completed on time, within one year of the acquisition, this migration has increased the assets held under custody by J.P. Morgan in Australia & New Zealand more than 20 per cent. With more than 150 ANZ Custodian Services staff in Melbourne and Wellington accepting roles with J.P. Morgan, the firm’s footprint has been dramatically increased in these two key financial services hubs.

Jane Perry, CEO of J.P. Morgan Treasury & Securities Services, Australia and New Zealand, said the strategic acquisition of the ANZ Custodian Services business builds on J.P. Morgan’s service offering as the only local firm to provide the full range of global, domestic, direct custody and fund administration services to local and international institutions and fund managers.

“As custody continues to move towards a scale-driven business model, we will continue to ensure that our clients benefit from our integrated solutions, our global platform, and our deep local expertise in the local market. We remain committed to enhancing our on-ground coverage in key Australasian financial centers such as Sydney, Melbourne and Wellington, and further broadening the wide range of innovative solutions available to our clients,” said Perry.

The completion of the ANZ project follows J.P. Morgan’s recent announcement of the expansion of its direct custody and clearing capabilities globally, with the first phase build-out of the offering covering Australia and New Zealand, Taiwan and India in Asia Pacific, along with the United States, United Kingdom and Russia. The firm already offers a globally integrated custody and clearance service backed by a unified technology platform to institutional investors in more than 100 markets.

“Direct custody is a natural extension of our existing business and is part of J.P. Morgan’s expansion plans globally. A direct custody service enables us to meet the needs of clients with cross-border investments in Australia and New Zealand, and to add new clients seeking local custody and clearing services and grow these relationships globally,” she added.

“The migration of ANZ’s Custodian Services clients, combined with our enhanced direct custody network, mark a milestone for the Treasury & Securities Services business in Australia & New Zealand. We are excited about the future opportunities in the direct custody and administration space and we look forward to better servicing the needs of our existing and future clients.”

The provision of direct custody in Australia & New Zealand is part of the Asia Pacific growth plan for the Treasury & Securities Services business, with the firm expanding its local on-ground presence, enhancing its range of market leading products and elevating its client servicing capabilities year-to-date, J.P. Morgan Treasury & Securities Services has hired an additional 500 financial professionals in Asia Pacific to broaden its regional coverage and further develop its partnership with clients. J.P. Morgan Treasury & Securities Services provides solutions to corporate and institutional clients across the region.

The post J.P. Morgan completes migration of ANZ custodian business appeared first on AdviserVoice.

“The acquisition of Tyndall Investments by Nikko AM further strengthens a leading asset management operation in Australia and New Zealand that has over AU$25 billion in combined funds under management, keeping the business and team intact and retaining the highly-regarded Tyndall Investments brand and investment approaches.

“The Tyndall Investments management team in Australia has participated in the strategic review process, and fully endorses the outcome.

“Throughout the process, the Tyndall investment teams have remained focused on managing client portfolios and continue to be highly rated by the research community for their approach, process and performance track record.

“We look forward to building on the momentum the acquisition generates and the opportunities created from a major international asset management parent which has a strong pan-Asian presence and an aligned business capability and focus,” Mr Hobart said.

Nikko AM is one of the largest asset managers in Japan with US$120bn in mutual funds and institutional accounts, is owned by the Sumitomo Trust & Banking Co. Ltd and Nikko AM employees, and is recognised as a strong and stable company.

Tyndall Investments offers Australian and international equity, Australian and international equity fixed interest and global premia funds in Australia, and has AUS$22 billion in funds under management.

Mr Bob Van Munster, Head of Tyndall Australian Equities, said that the equity team couldn’t be more pleased with the outcome.

“It allows us to retain our highly regarded approach and investment style and we are looking forward to a future with a partner that is focused on asset management.

“Having Nikko AM as our new parent provides us with direct investment insights into one of the fastest growing regions in the world, which is increasingly considered the major economic influence on Australian investment markets.”

Mr Roger Bridges, Head of Fixed Income, added that it is an outstanding result for the Tyndall fixed income team.

“Despite a difficult environment for fixed income managers over the last 12 months, we have continued to generate consistent returns for investors through a measured approach that helps manage risk.

“We have a strong track record in fixed income management that has proven itself throughout different market cycles and economic conditions, and with Nikko AM as our new parent we can build on this strength while continuing to provide the benefits of our capabilities to Suncorp as our cornerstone client.”

The post Outcome ideal for Tyndall Investments appeared first on AdviserVoice.