DPM offers equity to lure planners
Diversified Portfolio Managers (DPM) will offer equity to participating dealerships in a bid to create a network of financial planners and open its dealer group to the wider investment community.
DPM has an existing relationship with dealership InvestAhead, but hopes to grow a network of financial planners around its master trust and wrap offering.
DPM’s master trust and wrap are DPM branded products built on theNorwich Unionowned Navigator platform.
“It’s important to be on a strong, deep pocketed business platform, which is why we selected Navigator, and we will help dealers get the best out of this relationship,” says DPM principal David Williams.
In addition to the capital stake, dealers will secure a guaranteed buyer of last resort facility for their business, Williams says.Tower Australiahas agreed to buy all business on the DPM platform for two-and-a-half times the trail commission they generate, or three-and-a-half times the trail if the business is generated by Tower products.
DPM will allocate 63 per cent of total equity to member dealers, and hopes the relationship will foster a collaborative environment among participating financial planners.
“We expect dealers to help each other and leverage off their own businesses,” Williams says.
“Clients want independent dealers, and we believe we can bring financial planners the support they need to enable them to deal competitively with their clients.”
The equity model means that revenue generated by business passing through Navigator’s administrative system via DPM will be put back into the business to form the basis for dealers’ equity, Williams says.
AUTHOR
Barbara Messer
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