EQT - EQT Holdings

[Dona Ferentes]

EQT Holdings Limited (EQT, formerly Equity Trustees Limited) is a financial services company which provides financial products and services and include wealth management, estate planning, managed funds, superannuation, institutional services and philanthropy.

EQT operates in Australia and has two business units which are Trustee & Wealth Services and Corporate Trustee Services.

- Like most companies, EQT has taken a beating in the recent sell-off, and lost all of the last three year's gains. As a boring 'bread and butter' stock, I can't see its business model changing too much. Maybe it's cheap again? Only issue is liquidity; tightly held and possibly hard to accumulate a position

 

[IrishDigger]

I notice WAA has listed EQT in one of its Top 20 Holdings.

 

[Dona Ferentes]

I notice WAA has listed EQT in one of its Top 20 Holdings.

and coming in at #11 (2.8% of total) at Mirrabooka; its the sort of stock that appears in 'value' portfolios

 

[So_Cynical]

ETQ is a very robust business, half the income is recurring Trustee services, they have 30 million cash and very little debt.

 

[divs4ever]

Friday 19 August 2022
Details for EQT Holdings revised full year results release
and webinar
EQT Holdings Limited (ASX: EQT) now proposes to release its Full Year Results on Monday 22 August
2022.
EQT is in discussions regarding a proposed material acquisition and a proposed equity raising to be
undertaken by way of a pro rata accelerated non-renounceable entitlement offer and institutional
placement. There is no certainty that a transaction will occur.
Mick O’Brien, Managing Director and Philip Gentry, Chief Financial Officer & Chief Operating Officer
will conduct a webinar at 10.30am (Melbourne time) on Monday 22 August 2022.
Updated registration instructions will be provided in due course.
We recommend participants pre-register 5 - 10 minutes prior to the webinar. Participants will have the
opportunity to include a question in advance when you register, when you receive the details by email
closer to the webinar, or via the webinar platform during the presentation.
Access to a recording of the webinar will be emailed to all registrants after the event, and available
afterwards at https://eqt.com.au/investor-centre.
The Managing Director has authorised that this document be given to the ASX.

======================================================================

(DYOR)

i hold EQT ( currently nicely up .. about 85% )

will depend on the details whether i participate , i already participate in the DRP

 

[Dona Ferentes]

I notice WAA has listed EQT in one of its Top 20 Holdings.

also in Mirrabooka's, as at July 2022 - #19

And more consolidation in the field - with a market cap above $500Mill, EQT is one of the acquirers

"A transformative acquisition with compelling strategic and economic rationale."

Highlights
• EQT Holdings Limited to acquire Australian Executor Trustees Limited for total cash consideration of $135 million
• To be funded through a $125 million fully underwritten equity raising and new debt facility... comprising a $40.4 million institutional placement and $84.6 million from a 1 for 6 accelerated pro-rata non-renounceable entitlement offer; both at $24.00
• Strategically and financially compelling acquisition that delivers significant growth for EQT
• Complements EQT’s TWS private client business, adding scale, expertise and geographic spread
• Adds $5.4 billion in FUMAS, boosts overall revenue and EBITDA by more than a third, and expected to be earnings accretive
• Synergies expected from restructure of platform service business and additional investment revenues in relation to the Trustee Services business
• Balance sheet remains strong, retaining flexibility for the future

 

[Belli]

Not directly related to EQT but I see it's not longer in the Top 20 of WAA - and I was surprised how small is WAA at a mere $57m in assets.

 

[divs4ever]

Not directly related to EQT but I see it's not longer in the Top 20 of WAA - and I was surprised how small is WAA at a mere $57m in assets.

would you really be comfortable with a LIC with WAA's mandate being much larger . sometimes small and nimble gets the cherries ( and only the cherries )

( i hold stable-mate WAX . and EQT )

however i was surprised to see EQT was in the WAA portfolio


*** Advisers
Greenhill & Co is acting as financial adviser and Herbert Smith Freehills as legal adviser to EQT on
the acquisition and Equity Raising. Barrenjoey Markets Pty Limited and Ord Minnett Limited are
acting as joint lead managers and joint underwriters to the Equity Raising, and Wilsons Corporate
Finance Limited is acting as co-lead manager. ***

but might be just coincidence

 

[divs4ever]

also in Mirrabooka's, as at July 2022 - #19

And more consolidation in the field - with a market cap above $500Mill, EQT is one of the acquirers

"A transformative acquisition with compelling strategic and economic rationale."

Highlights
• EQT Holdings Limited to acquire Australian Executor Trustees Limited for total cash consideration of $135 million
• To be funded through a $125 million fully underwritten equity raising and new debt facility... comprising a $40.4 million institutional placement and $84.6 million from a 1 for 6 accelerated pro-rata non-renounceable entitlement offer; both at $24.00
• Strategically and financially compelling acquisition that delivers significant growth for EQT
• Complements EQT’s TWS private client business, adding scale, expertise and geographic spread
• Adds $5.4 billion in FUMAS, boosts overall revenue and EBITDA by more than a third, and expected to be earnings accretive
• Synergies expected from restructure of platform service business and additional investment revenues in relation to the Trustee Services business
• Balance sheet remains strong, retaining flexibility for the future

am still thinking , but i already participate in the EQT DRP ...
SO FAR , i am inclined to let the offer whistle past

 

[Belli]

Simply because an LIC may be larger does not prevent it from being nimble if it choses to be so. That concept you raise is a furphy.

 

[divs4ever]

seems to be a furphy , that applies in the real world

i remember when commentators on cable TV were making fun of GRR ( and i was just happy collecting divs on my 20 cent buy )

 

[divs4ever]

EQT Holdings Announces to Sell Irish Business and Manage Exit of UK Business​

EQT Holdings announced the Company had reached an agreement to sell its investment in its Irish business for a nominal sum.

The business will be sold inclusive of cash held for regulatory capital purposes of EUR600,000 - EUR700,000.

i hold EQT

hmmm

am surprised they didn't exit earlier , but the EU and UK look a lot like a train wreck to me

 

[divs4ever]

EQT Holdings Limited (ASX:EQT) is pleased to announce the appointment of Johanna Platt as Chief Financial Officer (CFO), effective Monday 22 July 2024.
This appointment follows the announcement on 15 December 2023, of the decision by the current Chief Financial Officer and Chief Operating Officer, Philip Gentry, to step down from the position.
The appointment of Ms Platt followed an extensive search process over several months that assessed a strong field of candidates.
Ms Platt has more than 25 years of experience working in, and leading, finance teams; she is a collaborative and commercial CFO with multi-industry sector experience and a proven track record.
She is currently the interim CFO at ISPT and responsible for the finance, procurement, insurance, tax, treasury and valuation functions of the business.
Prior to this, she was the CFO for Vanguard Australia, where she led the Australian 200-person finance function and was part of the executive team governing the establishment of the Vanguard superannuation business.

Managing Director, Mick O’Brien said: “Johanna brings an exceptional suite of skills to EQT and our growing business. We warmly welcome Johanna to Equity Trustees and I look forward to working alongside her.”

The Managing Director has authorised that this document be given to the ASX.

i hold EQT

 

[divs4ever]

Equity Trustees confirms completion of SAF administration transition

EQT Holdings Limited (ASX:EQT) today confirmed the completion of one of two key strategies to achieve synergies when it acquired Australian Executor Trustees Limited (AET).

At the time of acquisition, Equity Trustees announced its intention to exit the AET Platform business and also outsource the administration of the Small APRA Funds (SAFs) – a portfolio of more than 400 funds and $600m of assets.

These changes are a critical driver of achieving the previously announced $2.9m net expense synergy.

Equity Trustees can confirm that the transition of SAF administration was completed on 3 June with SuperConcepts the new administrator for these funds.

Equity Trustees remains as the trustee for these funds through its RSE Licensee held by subsidiary Equity Trustees Superannuation Limited (ETSL).

The exit of the Platform business through a progressive wind down is well advanced.

Equity Trustees now expects to achieve a net cost synergy of the originally estimated $3.5m per annum.

This will be achieved as a run rate in FY25.

We confirm the previously announced expected revenue synergy of $5.8m per annum run rate in FY25, capital release of $10m expected by the end of the calendar year contingent on court approval and within the implementation budget of $22m.

The Managing Director has authorised that this document be given to the ASX.

i hold EQT ( up 135% for me

 

[Dona Ferentes]

down more than 13 percent

ASIC, the corporate regulato, is suing ASX-listed superannuation business Equity Trustees for allegedly failing to conduct proper due diligence over the now-collapsed Shield Master Fund, which had $160 million of retirement savings funnelled into it via the super firm’s channels before it failed last year.

It is the first major court action regarding the managed investment scheme, which first caught the attention of the Australian Securities and Investments Commission in February last year when it issued an order to stop further investment after it suspected it was not properly disclosing its risks.

 

[Dona Ferentes]

down more than 13 percent

ASIC, the corporate regulator, is suing ASX-listed superannuation business Equity Trustees for allegedly failing to conduct proper due diligence..

deservedly so, if this is the scant sequence of events that allowed First Guardian to be added as an option

"... three simple questions. Alina Jin, a junior analyst in Equity Trustees’ superannuation office, put them in an email.

It was February 8, 2022, and she was assessing a request to add a new investment to the menu of 250 managed fund options on one of Equity Trustees’ superannuation wrap platforms.

But that investment, the Shield Master Fund, was new, it was only registered six months earlier, and it had no funds under management and no track record of performance.

Lin was looking at a spreadsheet completed by CF Capital, Shield’s investment manager, which said, “each component fund for this new Fund has outperformed their benchmark”.

There was no data to back this up and in any case Shield was new. “Not sure whether they can have short/long term performance data?” she queried.

Another red flag was that no “holding limit” was specified and EQT platform investors were usually barred from putting more than 50 per cent of their money in a single managed fund. “Holding limit is ‘none’ in their spreadsheet,” she wrote. “Should we ask them?”

Third, 20 per cent of the Shield fund was to be invested in a property fund, an illiquid asset with higher risk, which was also closely related to CF Capital. “Level 2 approval?” Lin asked. That would mean taking Shield to the board investment committee for approval.

No one from the Equity Trustees oversight department ever replied to her email.

Two days later, Lin sent the questions to the fund’s promoter via Acclaim, the administrator of the fund. Eight days later, Acclaim replied saying the data had been “back-tested” by FE Analytics. The only caveat was that any investment in Shield should be capped at 50 per cent of a person’s portfolio.

Four days later, on February 22, Shield was approved. By the time Equity Trustees raised the alarm, nearly two years had passed and investors had sunk $150 million into a web of risky illiquid investments, many of which were controlled by related parties.
.

 

[divs4ever]

The only caveat was that any investment in Shield should be capped at 50 per cent of a person’s portfolio.

that caveat alone should have caused an avalanche of red flags ( up to 50% in any long/short fund in recent times since 2020 )

... but

No one from the Equity Trustees oversight department ever replied to her email

now my return email may not have been very polite , but i would have replied ( and so should somebody appropriate at EQT )

the fact they allowed clients to invest in this for as long as two years and no questions/concerns hints strongly at complacency in the system ( 'the computer is never wrong' mentality )

there had better be some serious investigations going on ( internally ) at EQT .. what other cans of worms are they letting clients invest in that haven't passed the 'sniff test ' .. and haven't noticed yet

i hold EQT ( 'free-carried' )

it gives the appearance the company has been recruiting sales staff rather than investment advisors

.... and of course ... how did ASIC let First Guardian fly under their radar for up to two years ?

 

[Dona Ferentes]

' )

it gives the appearance the company has been recruiting sales staff rather than investment advisors ?

instead of investment advisors, try risk analysts.

 

[Dona Ferentes]

down more than 13 percent

and a further drop yesterday after Macquarie fessed up and will repay all net capital - some $321 million - to investors

ASIC, the corporate regulato, is suing ASX-listed superannuation business Equity Trustees for allegedly failing to conduct proper due diligence over the now-collapsed Shield Master Fund, which had $160 million of retirement savings funnelled into it via the super firm’s channels before it failed last year.
.

this is making the statement of 04 September a little brave. (since then, radio silence)