Centrepoint Alliance to acquire Brighter Super's advice book

Centrepoint Alliance has entered into an agreement to acquire the comprehensive advice book from ESI Financial Services, a wholly owned entity of Brighter Super.

The transaction will see up to 400 clients, generating $1 million in annual revenue, transition to Centrepoint's salaried advice arm, Financial Advice Matters (FAM), which manages around $1 billion in funds under advice. Only those that agree to transition will be factored into the transaction's price tag, which is based on a 1.25 times multiple.

The fund said it recognised the need to scale its advice offering. The deal also includes a three-year referral arrangement with FAM.

Brighter Super chief executive Kate Farrar said the fund's goal is for every member to retire with advice, as closing the advice gap is essential to improving retirement outcomes for Australians.

"One of our key priorities is strengthening our ability to support external financial advisers, because we want members to have choice in how they seek advice and who they receive it from," Farrar said.

"We have a good understanding of where our internal team is best placed to provide advice and recognise that some members require more specialised support."

Brighter Super head of advice Steven O'Donoghue said he's confident the partnership will deliver the right level of support for members.

"We selected Financial Advice Matters because of its strong alignment with our values, high service standards, and presence in the communities where our members live and work," O'Donoghue said.

"Our members will truly benefit from more personalised and specialist advice, while continuing to receive high-quality guidance that aligns with their individual goals."

Brighter Super said around 39% of its members currently receive financial advice. However, the fund acknowledged that not all members' advice needs can be met by its internal team, despite having nearly double the industry average of advisers, according to SuperRatings.

For this reason, it said it would continue to explore opportunities to expand its referral network to support scalable advice delivery. The fund now supports more than 1500 IFAs.

The fund's initiative follows findings from the Brighter Super and Investment Trends 2024 Retirement Income Report, which revealed that 47% of pre-retirees feel unprepared for retirement - "indicating a significant unmet demand for financial advice."

The report found a direct correlation between receiving financial advice and confidence in retirement outcomes, with 55% of pre-retirees who changed investment options after receiving guidance feeling more prepared.

Other research from Russell Investments has also found that Australians who received financial advice were, on average, 5.9% better off at retirement.

"Our goal is for every member to retire with advice and bridging the advice gap is key to securing a better retirement for Australians," Farrar said.