IFM Investors, an Australian fund manager, has increased its stake in local digital advice provider Decimal to 15%.
IFM acquired the additional stake through the placement of 28,900,000 ordinary shares at $0.03 per share.
The placement includes a voluntary escrow agreement, which bars share transfer to IFM for 12 months.
IFM head of active equities Neil Carter said the investment in Decimal was owing to the natural shift of the superannuation industry to adopt digital services.
“Decimal, as the leading provider of enterprise digital advice, enables the superannuation industry to seamlessly transition into providing members with comprehensive financial advice services,” Carter noted.
IFM, which is owned by 28 superannuation funds, took its initial 6.5 % stake in Decimal in January of last year as part of a capital raise.
Decimal CEO Nic Pollock said: “The new commitment from IFM Investors allows us to focus our investment in the successful release of our mobile first strategy as well as expanding existing programmes with both current clients and new prospects, while signalling confidence in the move to fully compliant digital advice within the superannuation sector.”