Australian Unity backs non-aligned platform

22-Aug-2013

By Kate Kachor

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Australian Unity has partnered with Federation Alliance for the launch of its investment platform, Federation Managed Accounts.

Federation Alliance was founded late last year by financial services industry participants John Morrison, Stephen Reed, Jan Morrison and John Grainger.

Australian Unity Investments head David Bryant said the professional experience of the Federation Alliance team was a major factor in the company’s decision to partner with them and came at a crucial time for the industry.

“Our conversations with financial advisers highlight that they are very interested in non-aligned platforms, and we believe Federation Managed Accounts will appeal to such advisers,” Bryant said.

“At the same time, advisers and investors are looking for more value from relationships and Federation Managed Accounts has been purpose-built to offer this.”

He said Federation Managed Accounts’ model of offering investors ownership through shares provided an “attractive option for advisers and clients”.

“Federation Managed Accounts will be a competitive entrant in the market at a time when complex record-keeping required by regulation makes platforms increasingly appealing for investors – if the price is right,” he said.

Under the shareholder model, shares representing a 90 per cent interest in Federation Alliance would be offered to investors, based on their use of the platform, and the remaining 10 per cent would be indirectly shared between the Federation Alliance key principals and Australian Unity.

Federation Alliance managing director John Morrison said it was the company’s intention that the platform would provide managed fund, wrap and model portfolio capabilities, as well as separate platforms for superannuation, non-superannuation and corporate superannuation.

Australian Unity Funds Management is listed as the platform’s responsible entity, with Linear Asset Management the platform’s administrator.

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