Some of you reading this might have come across the fundsupermart.com site.
The website, which is a distribution platform connecting unit trusts with individual investors, is owned by iFAST Corporation Ltd (SGX: AIY). iFAST serves both the do-it-yourself (DIY) investor as well as financial firms. As such, its business can be divided into two main buckets: the B2C (business-to-consumer) division and the B2B (business-to-business) division.
Recently, iFAST’s chairman and chief executive, Lim Chung Chun, gave an interview. Here are two key insights I had picked out that may be useful for investors:
1. The long road ahead
“If you look at Asia’s wealth management industry, the potential for this business is certainly substantial, as the amount of wealth in the region continues to grow – and it’s early days yet”
iFAST’s customers include financial advisory firms, financial institutions, multinational companies, high net worth individuals, and retail investors in Asia.
At the end of June 2016, iFAST has S$5.6 billion in assets under allocation. Despite the multi-billion dollar figure, Lim believes that the firm still has a long road ahead.
2. Bigger market trumps market share
“Rather than just focusing on grabbing more share or being the market leader, we aim to grow the overall industry pie. When you grow the total industry size, you can be assured of sustainable growth in the medium to long term.”
iFAST does not have the market all for itself. The firm’s competitors include Navigator (by Aviva), POEMS (by Phillip Securities), and other platforms by other financial institutions.
But, Lim takes a broader view on competition. He believes that the growth of the industry will benefit most of the industry’s players. This could be important for sustainable growth in the medium to long term, in his opinion.
To keep up to date on the latest financial and stock market news and for more investing insight, you can sign up now for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead.
Also, like us on Facebook to follow our latest hot articles. The Motley Fool's purpose is to help the world invest, better.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn't own shares in any company mentioned.