Commonwealth Bank investors have questioned the pairing of high-value funds management operations with risky advice and mortgage broking units, but have more broadly welcomed the split of $8 billion worth of wealth businesses into a separate company.
“Whilst Colonial, the funds management business and the platforms, are very good, people will discount the value of the financial planning business,” he said.
“Financial planning is not a great business to be in. Your assets walk out the door every day … the clients have a great relationship with the planner, not with the funds management house.”
Mr Dive, however, said the chances of capital return as a result of an IPO “struck me as a very low probability outcome”.
“That was a supposed disappointment, but we didn’t factor that [capital relief] as a factor at all,” he said.
Commonwealth Bank’s CFS planning, broking arms ‘basically up for sale’
Commonwealth Bank investors have questioned the pairing of high-value funds management operations with risky advice and mortgage broking units, but have more broadly welcomed the split of $8 billion worth of wealth businesses into a separate company.