Under scrutiny Sequoia posts solid result

Sequoia Financial Group has again defended its actions with respect to the collapse of the Shield Master Trust at the same time as announcing a full-year net profit of $3.2 million on the back of a 44% lift in funds under advice (FUA) to $18 billion.

In defending its “proactive” approach to dealing with the Shield collapse, the company’s announcement said it was continuing to “work closely with Regulators who are investigating the Shield Master Fund and First Guardian Master Fund”.

“We empathise with all clients that have been affected by the failure of these Funds and urge them to contact InterPrac’s salaried advice team who will assist them regarding their personal situation,” it said. “We will continue to work closely with the Regulators who are investigating this matter and possible remedies to assist affected customers”.

The company’s investor presentation said it “took proactive action closing new business in Shield in July 2023 and First Guardian in December 2023 while placing Venture Egg and Reilly Financial on compliance vetting in December 2023 “which effectively ceased all new business from Venture Egg”.

Sequoia chief executive, Garry Crole said the company had entered the new financial year with positive momentum.

“We are positioned to continue benefiting from the ever growing $4 trillion Australian superannuation market. Having strengthened our products and services available to both self-employed and salaried advisers, we anticipate continued funds under advice growth for the foreseeable future,” he said.

The company’s investor presentation pointed to 321 advisers across 219 practices, noting that it had 24 staff in the salaried advice businesses and 30 professional year candidates.

It outlined its goals for FY 26 as being to increase the number of advisers in InterPrac and Sequoia Wealth by 10% while increasing the number of salaried advisers by 25%.

The directors declared a final dividend of two cents per share, fully franked, bringing the full-year dividend to four cents.