AXA Asia Pacific announced today that it has reached agreement to purchase Sterling Grace Portfolio Management Group Limited for A$201 million. Sterling Grace operates as Spicers in New Zealand and Monitor Money in Australia.
Spicers/Monitor Money is an integrated retail portfolio management group focusing on distribution via financial advisers. It has 62 in house advisers and 26 offices throughout New Zealand, and 26 in house advisers and 9 offices in Australia. It has over A$2.6 billion in funds under administration and has annual inflows of over A$500 million from both internal and external financial advisers.

“Over the past two years we have set out a very clear strategic focus for AXA Australia and New Zealand focused on wealth management and financial protection. The acquisition of Spicers and Monitor Money represents a major step forward in implementing our strategy", said Les Owen, Group Chief Executive, AXA Asia Pacific.

“In New Zealand, Spicers and AXA will, together, be the pre-eminent retail investment manager and provider of financial planning services with around 13% market share in funds under administration. The acquisition of Monitor Money will accelerate our growth and penetration into the independent financial planning market in Australia”.

Sterling Grace is a high quality, vertically integrated, financial services and advisory business, offering asset management, funds administration and retail financial advisory operations within a single group.

This integrated business model has helped Sterling Grace deliver growth in funds under management, and profit, in excess of industry growth over the last five years and the business is well positioned to achieve substantial growth in the future.

Wrap and Master Trust services are offered under the Assure brand in both Australia and New Zealand and are utilised by over 300 advisers. In addition the business includes Arcus, a very successful asset management business, in New Zealand.

AXA intends to maintain the Spicers and Money Monitor business models and brands based on a proven operating model which will expand our offering to advisers and clients . This will create a fourth financial advisory network in Australia.

Vaughan Underwood, Group CEO of Sterling Grace Portfolio Management Ltd welcomed the change in ownership. "Gaining access to the major resources that AXA possess will be very beneficial to both our clients and our organisation as a whole".

After adjusting for interest and implementation costs the transaction will have a positive impact on earnings within 2 years.

The acquisition is subject to approval from the Foreign Investment and Review Board, Australia.


Enquiries:


Neil Swindells
General Manager, Distribution
61 3 9616 3638
0411 264 785


Matthew Slatter
Chief Finance Officer
61 3 9618 4885
0419 986 702


Francine McMullen
Manager Corporate Affairs
61 3 9618 4985
0412 223 485