DKN Financial Group has claimed it will be the biggest external distributor of BT Wrap by mid next year.
DKN chairman Rob Hunwick told the listed group’s annual general meeting yesterday that DKN expected to have $9 billion in funds under advice (FUA) by June 2008, including $6.5 million of BT Wrap business.
“[This] will make the group the biggest distributor of BT Wrap other than the Westpac Group,” Hunwick said.
DKN had FUA of $3.5 billion at September 30, 2007.
Count Financial is currently the largest supporter of BT. Revenue from Count’s $5 million in funds under management with three BT wrap platforms at June 30, 2007, was the listed group’s main source of revenue in the first half of this year.
DKN recently won a tender to buy Lonsdale Financial Group, beating a rival bid from Count.
It has also agreed to buy Zurich’s Wrap Account business subject to final court approval of the Lonsdale business, with both deals worth $120 million.
DKN, Lonsdsale and Zurich were all part of BT’s Wrap Advantage program, which meant the program “just got a bit bigger”, BT head of wealth and wrap solutions Chris Freeman said.
Zurich’s Australian chief executive, David Smith, and chief financial officer Chris Powell and Lonsdale director Ken Wright are to join the DKN board.
Hunwick said net profit after tax was expected to be more than $6.3 million for the half year to June 2008.
“Looking beyond 2008 . we see the growth in business remaining very strong, supported further by returns on investments in equity positions of financial planning businesses,” he said.
Creditors of the failed Westpoint group recently agreed to accept an offer of $3 million for investment losses associated with DKN’s now defunct dealer group Deakin Financial Services.
DKN’s share price closed down nine cents yesterday to $1.55.
