Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fisher Funds tops $5B buying Tower funds for $79M with TSB

Fisher Funds tops $5B, buying Tower Investments for $79M with help from new shareholder TSB

By Paul McBeth

Feb. 26 (BusinessDesk) - Fisher Funds, the fund manager co-founded by Carmel Fisher, has extended its reach in the funds management business, buying Tower Investments for $79 million in a deal backed by new shareholder TSB Bank.

The deal will grow Fisher Funds' funds under management to more than $5 billion from its existing $1.4 billion, following on from its acquisition of the KiwiSaver portfolios of First NZ Capital, Huljich Wealth Management and the New Zealand Association of Credit Unions over the past three years, the company said in a statement.

Taranaki-based TSB is supporting the purchase for an unspecified amount, and will take 26 percent of Fisher Funds, and get board representation.

"Tower's decision to sell its funds management business has created the opportunity for Fisher Funds to attain scale that will provide efficiencies in the management of clients' funds, while still allowing for the high quality personalised services that we are known for," managing director Carmel Fisher said.

"We anticipate that there will be synergies to be gained from the amalgamation of back office services and benefits of scale to be achieved from key suppliers which in time will flow through to investors in the form of a wider range of services and even more competitive fees," she said.

The acquisition comes as the government reviews the default KiwiSaver schemes, including Tower, with officials keen on aligning fund managers' incentives with long-term returns for investors. TSB's involvement in the acquisition echoes KiwiBank's purchase of Gareth Morgan Investments last year.

Tower has been looking to sell its investment business since it completed a strategic review last year as a means to provide value for shareholders, and comes after November's sale of its medical insurance unit to ASX-listed Nib. Tower's scaling back of its business comes as cornerstone shareholder Guinness Peat Group liquidates its portfolio.

"The focus for Tower going forward will be on growing our traditional core insurance business through offering superior products backed by market leading customer services," managing director Rob Flannagan said in a separate statement.

Fisher Funds has the right to use the Tower brand of 12 months from settlement, scheduled for April 2, and will manage Tower's internal funds for five years.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news