iFast Corp (S$9.31, down 11 cents) updated that iFAST Global Markets (iGM) Singapore is pleased to announce that the platform’s Assets Under Administration (AUA) as at 30 September 2021 has crossed the S$1 billion mark, representing a year-on-year (YoY) increase of about 62%. iGM Singapore is the wealth advisory arm of iFAST Financial Pte Ltd (iFAST Singapore), the Singapore subsidiary of Singapore Exchange Securities Trading Limited (SGX-ST) Mainboard-listed iFAST Corpora on Ltd (iFAST Corp).
The milestone is also significant given that the division is only four years old. Set up in 2017, the iGM division was created to exemplify the Company’s vision of the future of wealth advisory. The Company believes that successful advisers of the future will need to be properly empowered by Fintech to become significant wealth aggregators, while also embracing transparency as the basis of client trust and adopting the right revenue model which provides good alignment of interest between advisers and clients.
“The wide range of products and services available on our platform, our wealth advisers’ commitment in providing quality and transparent advice to investors, as well as our capability in empowering wealth advisers to be er scale up their business through the use of technology, are the key factors leading to this milestone achievement,” said Mr Terence Lin, General Manager, iGM Singapore.
“Digital wealth advisory doesn’t necessitate the replacement of human advisers with computers, but instead helps the adviser to serve clients be er and more efficiently. We’ve continued on the Fintech innovation journey to empower both advisers and clients, with the launch of a brand new iGM app,” shared Mr Lin.
“This is an important step towards a true ‘best-of-both-worlds’ hybrid, where iGM clients can enjoy the full transactional flexibility of a DIY account while retaining the advisory services of a technologically equipped yet very much human adviser, who has full servicing and advisory rights over the account,” said Mr Lin. Mr Lin believes this is the right model for future wealth advisory to help bring scale and efficiency to the business.
“Early adopters at iGM have seen significant growth in AUA – the average iGM adviser today oversees approximately S$17.5m of assets; we believe this is one of the highest figures amongst financial advisory fi rms in Singapore,” according to Mr Lin. At $9.31, market cap of iFast is $2,580mln, trailing P/E is 89.5x, current P/B is 21.5x and dividend yield is 0.4%. According to Bloomberg consensus, the average of the analysts’ target prices is $11.02, representing a potential upside of 18.4%.