Wealth management firm IOOF Holdings has decided to terminate the Global One platform, which it gained through its purchase of Skandia Australia in March 2009.
All members and businesses within Global One will be transferred to the IOOF Portfolio Service (IPS) and Spectrum Super platforms, IOOF said.
Global One had around $8 billion in funds under management at the time of purchase, an IOOF spokesperson said.
“Following an extensive review, the IPS and Spectrum Super products were chosen as the destination products for investors as they were viewed as the closest fit in terms of features, benefits and existing fee and adviser remuneration arrangements,” IOOF managing director Chris Kelaher said.
“Our goal is to deliver a range of products that continues to meet the needs of our customers and their advisers.
“The transferring of our Global One customers to the IPS and Spectrum Super platforms will allow us to focus on reducing costs over the longer term, improve overall efficiencies, better service our customers and continue to enhance our product offering.”
Superannuation and pension members on Global One will be transferred to the IPS Service Superannuation Fund, while corporate solution members will be transferred to Spectrum Super.
“We are confident investors will find that the features and benefits of the new funds are better, in many aspects, than those offered by their current product. For instance, clients will benefit from a wider investment menu and a more robust administration system,” Kelaher said.
Superannuation and pension member transfers will be undertaken by way of a “successor fund transfer” in accordance with the relevant regulatory requirements, IOOF said.
Client funds held in managed investment products will require a unitholder meeting to approve the transfer. These meetings will be held on 12 February 2010.
The decision to shut down Global One comes after Kelaher told shareholders in November that IOOF would “necessarily reduce” the number of products and services it offers in order to lift overall efficiency and performance.
