Convoy H1 revenue hits HK$316m on ILAS sales; Asia expansion continues

Hong Kong-listed IFA firm Convoy Financial Services reported first-half 2011 results: revenue grew 28.4% year-on-year to HK$316 million, driven by robust sales of investment-linked assurance scheme (ILAS) products.

What were the highlights?

98.6% of revenue came from commission income of HK$312 million, all based on ILAS product sales. Chairman and executive director Quincy Wong said demand for ILAS products was the engine of first-half growth.

What’s next for Convoy?

Continued Asian expansion. The firm was in talks with management of Singaporean IFA firm IPP over a proposed S$25 million takeover; despite allegations the previous month that the deal breached Singapore regulations (which Convoy denied), Wong hoped to close it before year-end, calling the coming months an important transition period. Convoy also planned further takeovers.

The MPF angle: IFAs are a key MPF distribution channel, and Convoy’s expansion reflects industry confidence in Asia’s long-term wealth-management growth. For background on the MPF intermediary landscape, see the MPF education hub.