Investment
IOOF divests Perennial Value

IOOF has divested its equity stake in Perennial Value Management, with senior executives of the firm acquiring its interest.

IOOF had a 52.4% equity interest in Perennial but 42.4% voting rights and dividend entitlements.

IOOF said in a statement that the expected minor loss on the sale and sale proceeds themselves are not material to IOOF.

IOOF chief executive Renato Mota said: "The divestment of our investment in PVM allows us to focus on our core wealth management capabilities."

"We are committed to our advice - led strategy and to delivering better outcomes for our clients and members."

Perennial Value managing director John Murray said: "We're delighted to announce our intention to acquire the remaining IOOF interest in our business."

"This represents a further significant alignment of interests between our staff and our clients, and is a strong vote of confidence in our continuing commitment to delivering investment excellence, fostering a specialist investment management culture, and building a successful and sustainable funds management business."

Perennial investment products will continue to be available on IOOF platforms as well as on other platforms and wrap accounts.

Perennial executive director Anthony Patterson said the transaction will reposition Perennial as a multi-boutique and explained that the company has been focussed on building niche capabilities in recent years.

"A major focus of this fund is investing in well-managed, strongly growing unlisted companies. We are very optimistic about the prospects for both Daintree Capital and Fairlight, which are both run by top-shelf investment executives who are passionate in their aim of delivering strong returns for their investors," Patterson said.

"Our ongoing development of eInvest reflects our view of growing investor demand for actively-managed exchange traded funds."

IOOF also recently sold its 70% stake in Ord Minnett, at the time saying it was an opportunity to focus on IOOF's core wealth management business.

Read more: IOOFPerennial Value ManagementAnthony PattersonDaintree CapitalFairlight Asset ManagementJohn MurrayOrd MinnettRenato Mota
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