Page 83 - OneVue Annual Report 2015

Notes to the financial statements

Note 32. Parent entity information (continued)

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
OVH has agreed to reimburse MAP for the difference between MAP’s expenses and the administration fees
recovered by MAP due to the revised fee structure post acquisition.

Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2015 and 30 June 2014.

Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment at as 30 June 2015 and 30 June 2014.

Significant accounting policies
The accounting policies of the parent entity are consistent with those of OneVue, as disclosed in note 40, except for
the following:

• The parent entity’s investments in subsidiaries are accounted for at cost, less any impairment.
• The parent entity’s investments in associates are accounted for at cost, less any impairment.

Note 33. Business combinations

Select Asset Management Limited now OneVue RE Services Limited and Select Investment Partners
Limited

On 28 August 2014, OneVue Holdings Limited (OneVue) acquired 100% of the shares of Select Asset Management
Limited now OneVue RE Services Limited (SAML), trading as Select Fund Services, and Select Investment Partners
Limited (SIPL);

• SAML is a specialist provider of responsible entity (RE) services and is one of Australia’s leading REs for multi-
asset trusts;

• SIPL is a specialist multi-asset investment manager and implemented portfolio consultant.
The combined Select business has been integrated within both business segments, deepening OneVue’s
superannuation trustee business and MAP Funds Management and also enhancing the Fund Services offering by
creating a broader suite of unit registry, responsible entity (RE) services and mFund distribution. OneVue now has
the ability to offer a packaged solution to product manufacturers of investment products with RE Services
complementing existing Fund Services and the automated interfaces to and from major custodians.

Goodwill arising in the acquisition of SAML relates to a synergy from substantially reducing working capital held
within the Platform Services segment by eliminating the duplication of an AFSL.

Goodwill relating to SIPL represents synergies obtained with the existing OneVue business. Existing multi manager
portfolio management will be transferred into the acquired SIPL operations. Existing OneVue client relationships will
be utilised where an appetite for portfolio management services like those supplied by SIPL exists. OneVue
platforms can be sold across existing SIPL client relationships.

The acquired businesses contributed revenues of $7.52 million and net profit of $2.23 million. If the acquisitions had
occurred on 1 July 2014 then contributed revenues and profit would have been $8.70 million and $2.13 million
respectively.

Consideration for SAML comprised net $2.07 million in cash. SAML held a cash and cash equivalents balance of
$5.29 million mainly relating to regulatory capital. OneVue paid SAML shareholders $5.12 million at completion on
28 August 2014, and paid a further $2.24 million to the SAML vendor shareholders on 28 February 2015.

ONEVUE ANNUAL REPORT - 83