Aurora Funds Management (AFM) has unveiled a new initiative – Aurora Distribution – to assist fund managers and investment product manufacturers without access to strong distribution channels in gaining access to retail investors.
The subsidiary firm will assist parties wanting to develop their own distribution channels via financial planning, stock broking and other investment advisory groups towards creating their own retail distribution strategies.
The launch of AFM – flagged in Money Management back in May – was the brainchild of a group of formerChallenger Internationalexecutives – Alistair Davidson, Simon Lindsay, Hugh Latimer and Richard Matthews.
The group have signed up former colleague – Challenger International business development manager Sandy Morgan – to head up the new firm with Morgan assuming the title of Aurora Distribution general manager.
According to AFM managing director and co-founder Alastair Davidson the new distribution business is “a natural fit” for the group, which is also contemplating other launches.
“We are in the process of establishing new and innovative funds as a responsible entity in our own right, and a lot of investment product manufacturers are asking us how they can access the Australian retail market space,” Davidson says.
Aurora Distribution has already assisted Rimcorp Property with a $7.51 million retail public offering for its Derrimut Industrial Property Trust.
“Outsourcing retail distribution suits us during this phase of our growth. Until we have sufficient scale to support a permanent business development team we will continue to utilize external resources like Aurora to assist with retail distribution,” Rimcorp managing director John Ballhausen says.
Aurora Distribution’s suite of services includes assisting wholesale managers in developing a retail distribution strategy, including the creation of product disclosure statements and the accompanying marketing and sales documentation required to promote investor interest at the retail level.
Aurora will also provide infrastructure to wholesale investment managers in terms of the sales and distribution staff required to run a small direct sales campaign during a retail offer period.
AFM directors Lindsay and Latimer will also be heavily involved in the development of Aurora Distribution through their experience in the Australian retail investment market.
