Father and son Stewart Financial Group directors Nick (left) and Don Stewart are in growth mode, buying a Wellington firm. They are pictured with father and son sculptures. Photo / Warren Buckland
Father and son Stewart Financial Group directors Nick (left) and Don Stewart are in growth mode, buying a Wellington firm. They are pictured with father and son sculptures. Photo / Warren Buckland
Hawke's Bay wealth management company Stewart Financial Group (SFG) has purchased a share in Wellington firm Red Wealth Managers, which will be rebranded to SFG.
It is SFG's first acquisition and director Nick Stewart said more companies could be acquired as the company expanded.
The acquisition strengthened SFG's reach andwas "exciting on many levels".
"Red Wealth Managers has built a strong reputation for providing sound impartial wealth investment advice which is in line with our business model and ethics," he said.
"This will not only grow our client base, but also strengthen the depth, knowledge and experience of Stewart Group's team.
"Stewart Group already has a number of clients in the Capital so we can now provide them with a higher level of face-to-face service from a solid base. Strong relationships are fundamental to our success and Red Wealth Managers owner Alan Burns is a long-time friend of our founding principal Don Stewart. Alan has more than 45 years of experience as an adviser and will bring a wealth of knowledge to the business."
The new entity is registered as Stewart Group Wellington, but trade as Red Wealth Managers until rebranded SFG next year.
"For our existing SFG clients, it's business as usual. The SFG head office will stay in Hastings as a non-aligned, independently owned wealth management business. Alan will continue as the principle Wellington adviser, and nurture existing client relationships. The Red Wealth Managers name will be phased out over time and replaced with the SFG brand but the high level of service and impartial advice will continue.".
Last year SFG was the first Hawke's Bay financial advisory business to be awarded Discretionary Investment Management Services (DIMS) licence.
The licence is part of the Government's tightening regulation of the industry, aimed at protecting investors who have given investment decision-making discretion to a provider. It came into force on June 1 under the Financial Markets Conduct Act, which allows only DIMS-licensed advisers to trade on behalf of their clients without sign-off.
Stewart Group has $350 million of committed funds under management.
The expansion follows on from the launch by SFG last year of Boutique Advisers Alliance service, an adviser-to-adviser service for fee-only Independent Financial Advisers (IFA). Seven firms across the North Island use the service.
Mr Stewart said SFG had a young team wanting to grow "and there's demand for our services".
