Perpetual buys Melbourne's Fordham Group

Perpetual has bought for $35 million Fordham Group, which manages about $500 million of private wealth. It specialises in financial planning for small-business owners, and owners looking to sell their business.

The financial planning industry is experiencing a spate of takeovers and attempted takeovers. AMP is leading a joint bid for AXA Asia-Pacific business, and NAB recently acquired wealth manager Aviva and is reportedly looking to buy Professional Investment Services. Earlier this year Perpetual took over Financial Pursuit and Grosvenor Financial.

The head of Perpetual's private clients business in Victoria, Lee Wapling, said his company was interested in further acquisitions.

"It is an incredibly fragmented market at the moment," he said. "We think that to be a leader in the high net worth individual segment we need to get over 5 per cent market share."

Perpetual's market share is about 2 per cent, and Mr Wapling said it was working through a "solid pipeline" of possible takeovers.

Perpetual's purchase of Fordham will be spread over four years. The acquisition is expected to lower Perpetual's dividends in 2010, but boost them the following year.