Wilson HTM Investment Group and Investorfirst have announced a non-binding heads of agreement whereby Investorfirst’s stockbroking and investment advisory activities will transfer to Wilson HTM, and Wilson HTM will transition its estimated total $1.4 billion of funds under management (as at 31 October 2012) to Investorfirst’s HUB 24 platform.
The two groups are developing a client portfolio management and reporting tool using Investorfirst’s HUB24 platform to assist in the management of Wilson HTM’s private client portfolios, according to a joint statement to the Australian Securities Exchange (ASX).
The transition of the Wilson HTM portfolio is subject to the successful development of the new platform and final agreement between the two firms, according to the statement.
The Investorfirst’s stockbroking and investment advisory businesses to be transferred to Wilson HTM include a number of advisers and analysts currently employed and engaged by Investorfirst in Sydney and Melbourne. The business generates annual revenue of more than $4 million, with private clients holding more than $400 million in Australian equities portfolios, cash and other investments, according to the statement.
Wilson HTM said the addition of three research analysts would allow it to increase its research coverage by around 20 companies, taking the total companies under coverage to around 120. The investment advisory team, led by Hugh Robertson, would bolster Wilson HTM’s focus on emerging and mid cap companies, according to the statement.
Investorfirst chairman Bruce Higgins said the investment advisers and analysts would now have the benefit of a larger company focused on stockbroking and investment advice, while Investorfirst will now move to focus on the “core activity of the development and commercialisation of the HUB24 investment and superannuation platform.”
The companies said they would work together closely to develop a platform for Wilson HTM clients that would initially be a white label solution for small to mid-size clients, and secondly a customised solution for Wilson HTM’s high net worth clients.
