Platform provider Wealthtrac has acquired a competitor's service level agreement (SLA) with ANZ Wealth's soon-to-be outsourced Oasis, with the company saying it welcomes the Oasis transition.
The purchase of Superior Wealth Management Solutions' (SWM's) Oasis SLA will see Wealthtrac's funds under administration (FUA) swell by around $350 million to $1.4 billion, covering more than 9,000 members.
The purchase was made despite ANZ announcing yesterday it will begin transitioning all Oasis administration services to Macquarie Investment Management Limited over the next 18 months.
Speaking to ifa, Wealthtrac chief executive Matthew Johnson said that he had known of ANZ's plan to offload Oasis before purchasing the SLA, and he is supportive of the bank's decision.
"We were aware of the pending changes regarding Oasis being replaced by Macquarie as the administrator and we're quite comfortable with that," Mr Johnson said.
"Having said that, what ANZ is doing, we see that as a positive for both current Wealthtrac clients and also SWM clients."
Wealthtrac has a suite of products and applications to simplify the management of wealth in both superannuation and investment. SWM's product suite is similar to Wealthtrac's and includes a superannuation service and an investment service.
Mr Johnson added that the acquisition will significantly increase Wealthtrac's IFA penetration and will deliver economies of scale.
"SWM has a similar culture and operating model to Wealthtrac, and I am very confident the business will be an excellent fit. Both businesses have a foundation relationship with ANZ Wealth's Oasis Funds Management as a major service provider," he said.
"There are a number of synergies in putting the two businesses together and we look forward to continuing to work with the IFA community to provide quality products and superior service solutions for their clients."
Mr Johnson that the SWM will remain the same for the moment, but that Wealthtrac would look to integrate it in due course.
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