Allan Gray confirms details of exit from platform market

Allan Gray Australia has confirmed it will transfer its role as distributor of the Allan Gray Solutions platform, including Allan Gray Superannuation and Retirement as well as Allan Gray Investments, to OneVue Wealth Services in early April.

The platform, which is currently operated and administered by OneVue, will remain open to existing clients and new business for transacting and additional contributions, and Allan Gray will continue to service clients, until completion of the transition.

Once the transition is complete, Allan Gray Superannuation and Retirement will become “Ensurity Super” and Allan Gray Investments will become “Ensurity Invest”. OneVue Wealth Services will take over as promoter and distributor of both products.

“Allan Gray took the decision after it became clear that it couldn’t deliver the platform service sustainably and to its standards of service and administration under the current arrangement in the ever-demanding regulatory environment,” the firm said in a statement to ifa.

The “difficult decision” to exit the platform market was originally announced by Allan Gray in November last year to allow the firm to focus on its core funds management business.

“We understand that this may be disappointing for you and we can assure you that this is not a decision that we have taken lightly,” Allan Gray chief operating officer Johan De Lange said at the time.

In a letter to investors, Mr De Lange had indicated that operating the platform business had become untenable in the current operating environment.

“While we were proud to be able to bring our competitive Allan Gray Solutions to you, it has become clear that we simply cannot deliver this sustainably and to our standards of service and administration under our current arrangement in the ever-demanding regulatory environment,” he said.

Allan Gray first launched its superannuation, investments, and retirement solutions business in 2018.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.