AFS to enter risk master trust waters
TheVictorian basedAustralian Financial Services(AFS) dealer group is making a considered push to set up a master trust exclusively for risk insurance products.
AFS managing director Geoff Moore says the group is examining the possibility of setting up the ‘insurance master trust’ through its existing master trust and wrap subsidiary, Strategy Portfolio.
“We have been considering an insurance master trust approach and there is a lot of work being done with that,” Moore says.
The move would put AFS into line withAssociated Planners, the only other dealer group to launch a master trust exclusively for insurance products.
However, Associated Planners, which set up the Solar master trust some two years ago, has made slow progress, attracting only two insurers to list their products on the platform.
Australia’s largest independently owned financial planning group,Professional Investment Services(PIS), has also had a long held ambition to launch a risk insurance master trust, although it is yet to release any concrete plans.
AFS national business manager Chris Smith says the group is aware of the difficulties in setting up a master trust devoted exclusively to insurance products.
But he says AFS is being driven towards the venture by continuing demand from its financial advisers.
Smith says AFS, which currently has some 60 principal advisers, is actively pursuing an ambitious growth strategy to double that number.
The existing Strategy master trust, which was launched in 2002, has $385 million in funds under advice.
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