Sigma Alpha International Limited (SAI) has formed a new asset consulting and funds management unit targeting the wholesale superannuation industry.
SAI group managing director Graham Morrow announced the formation of the new business division late last week.
As part of the strategy to grow the business, the firm has bought CPG Research & Advisory Pty Ltd Company (CPG).
CPG includes managing director Simon Ibbetson, director of consulting John Parrish and director Brett Westbrook.
CPG has around $11 billion of funds under its control, over 100 large clients including many local government councils across Australia, many large superannuation clients and has excellent revenues.
CPG will form a strong base from which SAI can build its business, Morrow said.
"The business will essentially be divided into two. CPG will provide independent asset consulting research on a purely fee-for-service basis and SAI will do implemented consulting," he said.
"It will provide full service corporate superannuation services."
Morrow said SAI's new businesses were an attempt by the group to offer competition and price efficient services in areas of administration, actuarial and group insurance.
"For too long, large funds have been charged alpha-based (added-value) fees but only received index or near index returns," he said.
"It is time for consultant or advisory fees to be linked to performance and for the private sector to become accountable for its actions."
Morrow said the private sector should be demonstrating its own leadership and initiative rather than placing too much attention on the pending outcomes of the Cooper review.
SAI is chaired by former Tower Life Australia managing director Ken Boag.
