AWAG enters joint venture with Phillip Capital

The ASX-listed Australian Wealth Advisors Group (AWAG) has entered a strategic joint venture with Phillip Capital Australia, covering funds management and distribution.

The joint venture allows for Armytage and AWAG products and services to be distributed to Phillip Capital Australia clients, with potential global network access.

The joint venture has received an initial capital investment of $32 million to start operations, with immediate increases to AWAG's earnings expected.

AWAG intends to leverage Phillip Capital's corporate services and capabilities as an ASX Trading and Clearing Participant, enabling access to established infrastructure in the domestic financial services industry.

Under the joint venture, Phillip Securities Australia's non-executive director John Miles has joined the investment committee that is overseeing operations of the Armytage Micro Cap Activist Fund (MCAF).

Miles brings 20 years of experience in capital markets with expertise in stockbroking, wealth management, technology and compliance for capital markets to the role.

This venture comes amid a series of acquisitions, helping AWAG reach its ambitions of creating a platform consisting of a "house of brands," and bolstering its adviser count to 80-100 by June 2026. Earlier this year, AWAG acquired a 20% stake in First Mutual, and an 18.02% stake in Sequoia Financial Group, making it a major shareholder.

AWAG hopes to continue participating in the rationalisation of the Australian financial services and wealth management sectors through corporate activism.

As a major global financial services company headquartered in Singapore, the joint venture with Phillip Capital provides access to domestic and global resources that will advance this goal.