Matrix Planning Solutions’ foray into funds management is yielding returns, with the dealer group recording strong performance, growth in assets under management and a healthy income from investment management fees.
Matrix worked with funds manager Russell Investments to develop the Partnership Funds, which earn the dealer investment-management fees.
The five actively managed portfolios, which were designed to deliver outcomes depending on investors’ life stages and needs, are supported by Matrix’s national network of around 100 advisers.
Rick di Cristoforo, managing director of Matrix Planning Solutions, said the Partnership Funds were part of the group’s strategy to generate alternative sources of revenue, with the funds able to be offered to external advisers in the future depending on demand.
“We want to earn income in a post-Future of Financial Advice-compliant fashion and grow the business now that we’re no longer for sale,” he said.
Since Matrix withdrew itself from sale three months ago, it has added two new practices with a healthy pipeline of inquiries.
“Talk about the demise of non-aligned licensees are severely overplayed. Matrix is evolving and we’re not the only ones,” di Cristoforo said.
“We’re constantly in conversations with people who are interested in joining us.”
Di Cristoforo said the group was pleased with the performance of the Partnership Funds, which had all outperformed their respective benchmarks, however, there are no plans to develop further investment solutions.
The Partnership Growth Fund has achieved the strongest return, delivering 10.8 per cent for the calendar year to August 31, 2013.
The Partnership Balanced Fund, which targets returns of 3 per cent above the Reserve Bank of Australia cash rate, posted a net return of 7.69 per cent for the eight-month period while the Partnership Debt Management Fund posted a net return of 7.67 per cent, beating its benchmark by 4.26 per cent.
