Lowell Capital Ltd, the boutique Melbourne accountancy group will expand into financial planning by early next year according to managing director Paul Cowan.
Lowell Capital Ltd, the boutique Melbourne accountancy group will expand into financial planning by early next year according to managing director Paul Cowan.
The move represents a logical step for the group as it sees increased demand for planning coming from not only its accountancy arm but also from its subsidiary funds management business, Lowell Asset Management Ltd.
“This expansion is a consequence of meeting the ongoing needs of clients and fi-nancial planning is an area we don’t cover as much as we could so we wish to grow that part of the business.”
“It is a perfect link between the our accountancy and tax business and that of our funds management business,” Cowan says.
The planning division will be created from the ground up with interaction but also a strong distinction between the various arms of the business.
Cowan says many accountancy groups are now creating their own inhouse plan-ning service instead of outsourcing and this process has allowed Lowell to place greater emphasis on risk management and products in the planning process.
“We have a $250,000 minimum limit for investing but for clients looking to invest with less the planning side allows the establishment of relationships with parties that can provide that service.”
“In addition we are looking at creating our own unitised products below that limit which will be available to us and those partners mentioned to service a wider range of clients,” he says.
The startup of the planning business will happen in the next two months and Cowan says it will be modest with a few planners but hopes to pick up speed into the middle of next year.
“It is important to provide clients with appropriate structures, systems and relation-ships. We will be disappointed if no headway is made by July of next year but it would be overly optimistic to be bullish on targets right now,” Cowan says.
As part of the startup process any acquisitions have been ruled out in the short term but Cowan emphasises Lowell Capital is still receptive to sound offers.
“If the right opportunity came up we would certainly look at it but we would al-ways examine any other groups to ensure they have the same focus and structure so quality comparisons can be made.”
The fund management arm, Lowell Asset Management, was formed in 1991 and currently has $100 million in funds under management, with the majority in private client accounts.
Cowan says the fund management kicked off in much the same way as the plan-ning service will with demand from customers for products through sources other than brokers or the existing large fund managers.
