by Rob Hosking
The purchase is the latest in a run of buy-ups which began in late 2001 with the purchase of Spicers. AXA subsequently bought the financial planning arm of KPMG with Cameron Chote Investment Services, as well as ipac Securities in Australia.
"We are looking at more expansion – by way of acquisition," says Stewart.
AXA has ambitious targets for the next five years, with company chief executive Les Owens talking of doubling the amount of funds under advice it has in businesses it owns over that time.
Stewart says AXA needs to become much more active in the advice market.
"This acquisition is part of a deliberate strategy to work across the whole wealth management spectrum.” Acquisition, rather than setting up its own business, is the only sensible way to go, he says.
“It’s bloody hard to be a new entrant in that space.”
While he would not give numbers, Stewart says the purchase of Financal Pathways, which is understood to have funds under management of about $60 million was for “some cash down now based on current value and future value after we have made some changes,” and the remainder to be paid in 12 months.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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