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By Jenny Prabhu and Gerald Stanley
Melbourne based Equities & Freeholds Ltd (EQF) formerly owned 86.5% by Tidewater Investments Ltd has appointed three new directors, Lee IaFrate, chairman, Campbell McComb and Jonathan Sweeney all of whom have well known track records of success in the boutique investment planning space. They will join director and company secretary Andrew Brown on the board of the new look company.
EQF has announced an 8 for 1 non renounceable rights offer of up to 23.284 million new shares at 25c each, underwritten by EL&C Baillieu Stockbroking Ltd and sub underwritten by all four directors.
Ex date was November 24, the offer is scheduled to close on December 10.
Tidewater Investments will via the new issue reduce its stake in EQF from 86.5% to 9.6%.
Since 1992, the year in which compulsory superannuation was introduced, total super assets have reached $1.30 trillion as of the September quarter (up from $791.5 billion 4 years ago) and will continue their exponential growth – rising even more dramatically if the compulsory contribution is lifted from 9% to 12% as is being debated currently - and as Australia's population and workforce grows.
This giant and ever growing pool of savings, now a major component of the country's GDP, has seen a proliferation of funds and of financial planners that offer management advice.
Because of its size and the complexity of products available it has also spawned the occasional Storm Financial - as well as many well meaning but under qualified financial planners whose advice or management could equally lead to disaster for their clients.
To lessen or hopefully eliminate the chance of such events in the future, a major overhaul of the superannuation industry and its participants is underway, expected to be completed by mid 2010.
The superannuation industry (apart from the sovereign Future Fund) is dominated by four major players – AMP, AXA, Westpac and CBA.
The ten biggest super funds are…
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