Investorfirst has entered heads of agreement to transfer its stockbroking and investment advisory business to Wilson HTM Investment Group (Wilson).
The move, which includes a number of Investorfirst advisers and analysts based in Sydney and Melbourne, has been structured to allow both parties to strengthen their core business operations, both firms said in a statement to the Australian Securities Exchange (ASX).
The addition of Investorfirst’s investment advisory team will further bolster Wilson HTM’s focus on emerging and mid cap companies.
The addition of three research analysts will allow Wilson HTM to increase its research coverage by around 20 companies, taking the total companies under coverage to around 120.
“The addition of at least nine highly experienced investment advisers is a tangible step towards achieving our goal of establishing Wilson HTM as a leading wealth manager and adviser to emerging companies in Australia,” Wilson managing director Andrew Coppin said.
“Astute and sophisticated investors understand that emerging mid cap companies are an important component of their portfolios, which if properly selected and managed, can add meaningful returns to investment portfolios over time,” he said.
Investorfirst chairman Bruce Higgins said he believes the transaction is mutually beneficial for both firms.
“In transferring our stockbroking and investment advisory services to Wilson HTM, Investorfirst’s clients, investment advisers and analysts will have the benefit of a larger company, focused on stockbroking and investment advice,” Mr Higgins said.
“Investorfirst will now focus on the core activity of the development and commercialisation of the HUB24 investment and superannuation platform,” he said.
As part of Investorfirst’s focus on HUB24, both firms intend to work closely to deliver an investment platform for Wilson HTM’s clients, initially through a white label solution appropriate for small to mid-size clients, and secondly through a customised solution for Wilson HTM’s high net worth clients.
Subject to the successful platform development and final agreement between the two firms, funds under management with Wilson HTM, totalling $1.4 billion as at 31 October 2012, is expected to transition to the HUB24 platform over time.
This business currently generates revenues in excess of $4 million, with Investorfirst’s private clients holding in excess of $400 million in Australian equities portfolios, cash and other investments.
