Wrap manager netwealth Investments has bought a self-managed superannuation fund administration business for an undisclosed sum.
Netwealth managing director Michael Heine said many users of the wrap were self-managed superannuation funds and the addition of an administration service made sense.
“The two businesses are a natural fit and the cultures are very similar, ensuring integration and product development will be seamless,” he said.
“The acquisition provides a natural extension to netwealth, strengthening our product offering and expanding into critical administration solutions directly for our clients.”
David Pascoe is joining netwealth as general manger — self-managed superannuation having specialised in managing superannuation funds for 18 years.
“The benefits the union brings to our clients is access to a wide range of products and services from netwealth and real-time processing and reporting, with the web access that is now demanded by our clients, who are becoming more sophisticated,” he said.
“Together, we are now able to offer a comprehensive end-to-end solution for all the superannuation needs of our clients through the accumulation and retirement phases of their lives.”
Netwealth will offer the fund administration services to advisers and dealer groups using the wrap service.
Heine said the wrap has more than $1 billion of funds under administration and more than 40 dealer groups were using the service.
He admits the first $100 million in funds under administration was the hardest to achieve.
“By the end of 2002 we had just $15 million on the wrap, but then it seemed to ramp up,” he said.
