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

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news