That’s a whole new distribution channel for you, in addition to the IFA channel.
Our focus for 2017 continues very much to be on the IFA community and, of course, the future fit work we are doing with them to help transform their business models.
We are also rolling out training to the IFA community to help them get to a more sustainable business model, so that continues to be our key focus. But at the same time we are beginning to see this developing trend among the asset management, external asset management, high net-worth niche. We are gaining traction in that space, and that has become a focus for us.
You acquired AAM Advisory, a financial advisory firm in Singapore, as part of a vertical integration strategy. Might you consider acquisitions in this other space, the external asset manager/high net-worth type?
The AAM acquisition has worked well for us and they have done some great business. As we reflect post-acquisition, it has gone as well as we could have hoped for.
Do I think we would make an acquisition in this new space? Absolutely, if (a) there was opportunity, and (b) it made as much sense as the AAM one did. We are not actively looking for such an acquisition but as we develop relationships, those opportunities emerge and we would be receptive to exploring them. We don’t have a shopping list and a big treasure chest, however.
Would you would say the same in relation to any other financial advisory businesses as well? Are there any other AAMs in other jurisdictions, South America, for instance, or the Middle East?
Absolutely, if it makes sense to what we are trying to do as a business. If we felt they had a sustainable business model, cared about customer outcomes, were involved in the investment decision and responsible for it, and if they shared our values and the commercials made sense then, yes, we would consider an acquisition.
But it is not the thing that drives us today. Principally, it is about relationships in an IFA-intermediated world, and that is how we do business.
