GDG separates Lonsec Research from managed accounts

Lonsec Group has drawn a distinct line between its fund research and ratings operations and its bulked up managed accounts business.

Just hours after Lonsec’s parent company, Generation Development Group (GDG) announced its acquisition of specialist managed accounts business Evidentia Grup, Lonsec issued a statement outlining what it described as a “strategic realignment” of its businesses.

It said Lonsec’s research and managed account business would separate into two new business units – Lonsec Research and Ratings and Evidentia Group.

Evidentia Group would be a combination of Evidentia and Lonsec Investment Solutions and Implemented Portfoliios.

The creation of two distinct business unites headed by different chief executives is interpreted as allaying any regulatory fears.

The announcement said Lonsec Group Chief Executive, Mike Wright would take up the role of Chief Executive of Evidentia Group while Lorraine Robinson would be CEO of the Lonsec Research and Ratings which would comprise of the Lonsec Research, Irate and SuperRatings brands.

Announcing the Evidentia acquisition yesterday, GDG chief executive, Grant Hackett said that by merging the collective strengths GDG would be providing an end-to-end investment management and managed account solutions for licensees, financial advisers and their clients.

His statement said there would be no impact to financial advisers and clients as a result of the restructuring, with business as usual and no changes to the client service models in place.

The Lonsec announcement reinforced that the establishment of Lonsec Research and Ratings, “the business will continue its unrivalled legacy of fearlessly independent research and ratings services across the broad spectrum of Australia’s investment, superannuation, financial advice and service sector.

It said SuperRatings would continue to be led by Kirby Rappell who “remains an integral member of the leadership team”.

GDG said it intended to conduct an Equity Raising to raise approximately $287.9 million through an institutional placement and a fully underwritten entitlement offer.