Praemium partners to acquire UK pension provider
Investment platform provider, Praemium, has entered into an agreement to acquire England-based self-invested personal pension (SIPP) provider, Wensley Mackay.
The $1.04 million (£600,000) deal in cash would be subject to satisfactory fulfilment of the conditions specified in the agreement, including approval by, UK regulatory, the Financial Conduct Authority.
The transaction was expected to be earnings accretive in the first year, Praemium said in a statement to the Australian Securities Exchange (ASX).
While Praemium currently ran its discretionary investment platform in the UK using the company's proprietary separately managed account (SMA) technology, the firm said two-thirds of UK's household wealth came from private pension savings, with over one million SIPP schemes.
Praemium would now have access to a new source of funds under administration (FUA) through its existing adviser relationships.
Praemium chief executive, Michael Ohanessian, said: "In the UK, platform providers have seen the retirement market open up following pension reforms introduced in April 2015 that de-mandated the use of annuity investments. Investors are exiting annuities and seeking other options for their retirement savings, with a major shift to pension schemes like SIPPs that offer a wide range of option".
AUTHOR
Malavika Santhebennur
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
