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Sequoia invests in asset manager

By Keith Ford
3 minute read

Financial services company Sequoia Financial Group has acquired a 20 per cent stake in Euree Asset Management.

On Tuesday, Sequoia confirmed that it had acquired 20 per cent of Euree Asset Management for $500,000 in cash and a further $500,000 in “provision of services and goodwill”.

Part of the goodwill contribution will see Sequoia investment manager Winston Sammut join Euree as senior investment manager responsible for the funds dealing in domestic listed and direct property investments.

Sequoia added that Mark Phillips, Michael Butler, and Alex Edmonds would also support the Euree management team to launch a range of multi-asset funds to the advice market.

Euree Asset Management is headed by former AFL player James Hird as chief executive and Alan Hall as chairman.

Euree will initially offer three fund options, which Sequoia said are aimed at “supporting financial advisers who want to reduce the cost of advice by accessing a single fund that has the intellectual property and knowhow to select a range of investments under one umbrella across various asset classes to form either a balanced, growth or property-style fund”.

The selection of the underlying investments will be managed by Mr Hird, Mr Sammut, Mr Edmonds, and a team of external investment consultants who will look to use funds and direct investments that have the premium ratings from independent research houses such as SQM Research, Lonsec, and Morningstar in each asset class.

Mr Hall said: “We are delighted to welcome the Sequoia Financial Group as our partner. Their commitment and involvement in assisting us to establish our business is complimentary, exciting, and enhances our vision to offer access to a variety of leading fund managers within a single fund to the financial advice market.”

Last week, Sequoia confirmed the sale of 80 per cent of its equity interest in Morrison Securities to New Quantum.

Garry Crole, managing director of Sequoia, commented: “We are pleased to have today entered into a binding sale and purchase agreement to sell 80 per cent of Morrisons for an aggregate consideration of $40.5 million in cash.

“Whilst Sequoia will retain a minority interest in Morrisons, going forward, the business will now benefit from a new owner with the capacity to capitalise on the further growth opportunities for the Morrison’s business.

“I am pleased this transaction has cleared the stage one completion phase and looks forward to working alongside New Quantum as it looks to add technology solutions to the marketplace to enhance the user experience.”

The firm is also coming off disappointing half-year results, with a 22.7 per cent decline in total revenue to $61.1 million.