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FINANCIAL service provider iFAST Capital Sdn Bhd expects assets under management to increase more than sevenfold to RM150 million by the end of next year, driven by growth in its retail and wealth management platforms.
iFAST Capital sells unit trust funds online through fundsupermart.com. It also partners financial advisers to sell funds using its integrated wealth management platform.
The assets for both platforms total RM20 million currently.
"The wealth management platform is meant to help serve the corporate unit trust advisers (Cutas)," iFAST Capital managing director Dennis Tan said.
Currently, there are only three Cuta companies registered with the Federation of Investment Managers Malaysia (FIMM) using iFAST Capital's business-to-business (B2B) platform.
"There are several other companies that will receive their Cuta status soon from FIMM and this will increase the representatives from 70 (individuals) currently," Tan told Business Times in an interview.
Cutas advise on unit trust products from various unit trust management companies.
The B2B platform, launched last October, has 900 accounts and sees 100 per cent growth monthly.
"More financial planners are getting comfortable using our platform to conduct their unit trust business," Tan said.
The retail platform, launched last September, showcases some 91 funds provided by 10 fund houses.
"Our belief is that most fund houses will join us over the medium term, except for those with a strong agency force," iFAST Capital's Malaysian division general manager Wong Sui Jau said.
With some 1,000 retail accounts under fundsupermart, Wong expects exponential growth to take place within four years.
"Right now, the early adopters and those familiar with investing overseas are using the platform. But this will snowball once the majority looks at this as an alternative channel," he said.
Generally, fundsupermart sees higher margins as it deals directly with customers, while its margin from the B2B platform is shared with the Cutas. The B2B platform thus drives hard on the volume game.
The company targets to break even in 2011 and will continue to inject capital to ensure the business runs smoothly.
The estimated initial expenditure for Malaysia is some RM20 million, of which RM15 million has been used.
iFAST Capital is a subsidiary of iFAST-OSK Sdn Bhd, a joint venture between OSK Investment Bank Bhd and Singapore's iFAST Corp Pte Ltd. It is part of the iFAST group, which has a presence in Malaysia, India, Singapore and Hong Kong.
Business Times
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