AXA-Australia-owned advice firm Monitor Money has received its first acquisition funding from its parent, three years after the financial services giant took over ownership of the business.
Monitor Money has acquired Adelaide planning business Whelan Financial Services as part of a new strategy to grow its limited presence in a number of cities across the country.
The advice group has 25 advisers operating out of offices in Sydney, Melbourne, Adelaide, Perth, Brisbane, Gold Coast and Newcastle, according to executive director Mark Meehan.
AXA acquired Monitor Money in October 2001 when it paid $201 million for financial services group Sterling Grace Portfolio Management, a move it followed several months later with the purchase of Ipac Securities for a similar amount — $205 million.
According to Meehan, who is also AXA head of distribution operations and programs, a strategic review in 2003 revealed that the firm needed to grow.
“Being under scale meant we either needed to grow or exit the business and we opted to invest,” he said.
However, he stressed that the review did not conclude that with Ipac on board, not to mention its two other planning interests — AXA Financial Planning and Charter — that AXA should sell Monitor.
“A lot of people have asked me that, including many of the planners, but it never occurred to us that having acquired the business we would look to sell it,” Meehan said.
The strategy for the firm, which now has close to $700 million in funds under administration, is to focus on the self-managed super fund market and establishing long-term referral alliances with accounting and solicitor firms.
