Diversified firm adds funds manager to stable
Diversified financial services business AVFM has reached an in-principle agreement to acquire 50.01 per cent of boutique value funds manager Armytage from Treasury Group.
The $3 million sale will be made from existing cash reserves and takes effect from July 3, 2006.
AVFM director and co-founder Lee Iafrate, who is also the executive chairman and founding shareholder of Armytage, said bringing the fund manager under the ownership of AVFM would add to the suite of services available to the diversified financial service company’s clients.
AVFM also has investments in two financial services and superannuation advisory businesses, Carroll, Pike and Piercy and Garnaut Private Client Advisers. Their clients are primarily high-net-worth individuals, small institutions and charitable trusts.
“Armytage is a funds manager that provides IMA [individually managed account] funds management services for a similar type of market. There’s an alignment of interest between those three businesses [Armytage and the two advisory businesses]. AVFM is now able to expand and improve on the services and resources that it provides to its clients,” Iafrate said.
As part of the ownership realignment, Armytage will issue additional shares representing 10 per cent of its expanded capital to Armytage’s principal investment director, Campbell McComb. The result of this will see AVFM retain a 45 per cent interest in Armytage.
Armytage currently has $180 million in funds under management. It recently released the Armytage Strategic Opportunities Fund, a pooled fund available on Navigator’s Premium Choice platform and BT Wrap.
Iafrate said the fund, which will be closed and capped at $200 million, is distributed through selected retail channels.
He said the fund currently had $9 million under management and was expected to be the primary source of growth for the group in the next one-to-two years.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
