Snowball Financial Group (Snowball) has signalled its intention to extend the managed portfolio of the Shadforths Financial Group (Shadfroths) and become the responsible entity (RE) of the firm’s core product funds if the planned merger between the groups is successful.
In a statement to the Australian Securities Exchange, Snowball said as part of the merger integration, the combined group would extend Shadforth’s existing managed portfolio services to all advice channels, become the RE of its core product issuance funds and refine the group’s multi and single sector portfolios.
It is also the combined group’s intention to launch a strategic fixed interest portfolio to Shadforth clients and integrate the Shadforth and Outlook Financial Services businesses into a single focused two segment operating model – high net worth and mass affluent.
The combined firm also proposes to integrate the two “Best Advice” adviser support, administration and funds management capabilities and expand the franchise and third party adviser capabilities.
The merged group is planning the development of “strategic services” including self-managed superannuation funds, portfolio construction, lending and broking and accounting and tax services.
The combined entity is expected to generate a number of operational and financial benefits, estimated to be moderate in FY 2012 and growing to $5 million (excluding integration and deal costs) in FY 2013, the statement said.
Late last month, Snowball said the combined Snowball and Shadforths group would form a privately-owned wealth management business with more than $14.3 billion in funds under advice, administration and management.
