Asset consultant Frontier Advisors has secured $6 billion industry fund LUCRF Super as a client as the firm looks to diversify its client base.
LUCRF Super is the fourth new client to join Frontier Advisors this year, according to a statement by the firm – and the first superannuation fund.
Frontier Advisors, which has traditionally serviced industry super funds, added the University of New South Wales, dairy industry body the Gardiner Foundation and local government insurer MAV Insurance to its books thoughout 2017.
Forty per cent of the asset consultancy's clients are now outside the superannuation sector, said Frontier Advisors in a statement.
"Frontier’s client portfolio of industry superannuation funds, now also includes a range of charities, universities, public sector organisations, insurers and industry group foundations and trusts," the statement said.
Outgoing Frontier Advisors chief executive Damian Moloney said, "Whilst the industry fund sector still provides the core of our client base, the addition of these different types of businesses is a reflection of the quality and experience of our consulting team and the flexibility and customisation our service model provides."
Mr Moloney referenced the UK Financial Conduct Authority's crackdown on the vertically integrated business models of investment consultants that also provide fiduciary management – something that he said could soon be coming to Australia.
"We’ve been planning for several years to be ahead of the curve when it comes to the changes facing our sector," he said.
"We’ve changed the nature of our consulting team and grown our numbers while investing heavily in technology that supports the changing demands and sophistication of the market.
"Although our staff numbers are currently at the highest level in the firm’s history, there is a limit to the number of clients we would take on as we don’t want to lose the ability to offer customised advice within a nimble and connected team structure."
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