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 four key insights I had picked out that may be useful for investors:
1. The long roadahead – click here
2. Bigger market trumps market share – click here
3. Acquiring growth
“We are constantly on the lookout for potential acquisitions that will expedite the growth of our AUA [assets under allocation]. While there aren’t many platforms to buy in Asia, there are closely related businesses that may present a good fit to our strategy, whether it be expanding our client base or AUA.”
With a large space to grow (see the first two insights), iFAST might look for acquisitions that would fit into its strategy. For acquisitions, Lim could be looking at a number of factors such as product range, client base, and assets under management.
Earlier this year, iFAST acquired Winfield Securities, a Hong Kong-based stock broker, to expand its range of product and service offerings.
4. Helping investors
“In the industry, what’s good for the client may not always be what’s good for the distributor in the short term. We’re here to help investors – that’s very clear – and where we’re different is that we take a long-term perspective of the business. With this long-term view, many things will change.”
Lim expressed the importance of helping his customers, even though it might come at the expense of the firm in the short term. He takes a long term view, which he feels is a different perspective to the rest of the industry.
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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.