Tower sheds light on planning future
Tower has entered discussions with three financial planning groups with a view to taking an equity stake in one of them.
Tower Adviser Services chief executive officer David Bleakley signalled the group's intention to purchase a financial planning group last year.
His comments follow the roll-out of Tower Managed Funds' (TMF) first products and the outsourcing of its back office managed-fund administration to Bankers Trust.
Bleakley has also indicated that Tower intends to gain its own dealer's licence this year, as multi-agents make the transition to proper authority holders in preparation for the forthcoming CLERP 6 legislation.
He says the group is hoping to fast-track growth in its distribution channels to achieve critical mass for the fledgling TMF business.
The Tower wholesale funds are aimed at master fund and institutional investors.
The Tower Lighthouse Funds target retail investors and include a no entry fee option and an ethical fund, which Bleakley says is designed to differentiate the Tower offering in a crowded marketplace.
TFM has also joined the growing number of fund managers offering mezzanine level products. Its Tower Prestige Funds offer reduced management fees for ionvestments above $50,000.
Bleakley says this is in response to the rise of fee-based financial advice, particularly for advisers with wealthy clients or those with a self-managed superannuation fund.
TFM has already begun the process of getting the funds onto planning groups' recommended lists. A number of research groups are currently evaluating its products.
"I think we are in a very similar position to First State Funds Management six years ago," says Bleakley. "Tower's investment performance is strong over a long period, the number of competitors is diminishing and there is enormous upside potential."
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