Master trust eyes Asian markets
ObjectMastery is looking at expanding into Asia with its Transact wrap service, according to general manager Ian Craig.
"Asia is on the agenda," he says. "As well as having strong Internet penetration, the independent financial advice industry is starting to take off, so it seems ready-made for Transact."
Craig says the company is looking at both the Hong Kong and Singapore markets.
"We believe there are about 30 independent financial planners in Hong Kong, so the industry is in its infancy," Craig says.
Hong Kong is introducing its mandatory provident funds which means there are 7 million people "who are investment-mad", he says. Singapore has 4 million investors, so Craig sees considerable opportunity for a region which has few master trusts or wrap accounts.
"If we established in Hong Kong it would also create opportunities in China," Craig says.
The next stage in planning the Asian expansion for the Australian wrap provider is to either raise further capital or find a strategic partner, he says.
Meanwhile, Transact now has $A100 million of funds under administration in the UK, achieved despite the gloomy investment climate over there.
Almost £10 million ($A28 million) flowed into Transact during March and a further inflow of £5 million ($A14 million) was achieved during the first week of April.
Craig says this contrasts with the gloomy reports from fund managers about the usually lucrative Individual Savings Accounts (ISA) season in the UK.
"Some reports claim that this year's ISA season inflows were up to 75 per cent lower than last year," he says.
"But we have seen no signs of weakness with Transact. We continue to grow rapidly."
ISAs are tax-advantaged investments allowing UK investors to invest up to £7,000 per annum into a tax-free environment. The 'ISA season' is to April 5, the end of the UK financial year.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
