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

 


Barnes's Bath Street buys out Milford stake in Complectus

Barnes's Bath Street buys out Milford fund's stake in Complectus

By Jonathan Underhill

Aug. 5 (BusinessDesk) - Andrew Barnes’s Bath Street Capital has acquired the Milford Active Growth Wholesale Fund's interest in Complectus, the company formed to add Perpetual Trust to trustee company Guardian Trust, giving Milford a profit on its three month investment.

Complectus acquired Guardian Trust for $68.5 million from Australian investment manager Perpetual, a firm unrelated to Perpetual Trust, in April. The fund managed by Milford Asset Management was a 50-50 co-owner of Complectus, according to a Companies Office filing at the time. Bath Street is listed as sole owner in the latest notice.

Complectus chairman Rob Flannagan said there had been concerns that Milford could gain competitive advantage, especially from information it might have been able to glean from the company's corporate trust division. "Despite Chinese walls it was still very difficult for them and difficult for the clients to accept. It wasn't a comfortable arrangement," said Flannagan, former chief at Tower.

In a release on the Complectus website, it says the joint ownership structure had "necessitated a complex governance structure in order to ensure that Milford did not have any access to information relating to funds management clients."

Milford Asset Management executive director Brian Gaynor said Barnes had been "very determined to go to 100 percent" and made an offer for Milford's stake that was "very attractive", yielding a profit "well in excess of anything else we made in that period." While he respected Flannagan's view of potential conflicts of interest, such an ownership arrangement wasn't uncommon.

Barnes is also managing director of Complectus. Guardian Trust has some 2,800 clients, with $60 billion of funds under supervision, and $2.7 billion in funds under management. Perpetual Trust has about 2,300 clients, with $1.6 billion in funds under management.

The sale of Guardian Trust marked the fourth owner for the firm in as many years, since Suncorp sold it for A$42 million to The Trust Co in 2010, which was itself taken over last year by Perpetual. Barnes completed his purchase of Perpetual Trust for $12.3 million in January.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news