Major Fund Services Alliance Announced

An alliance announced today between two leaders in the investment administration and managed funds worlds will provide a unique service to New Zealand investors and offer benefits to the wider economy.

TOWER Trust, the country’s foremost provider of corporate trustee and investment administration services, and DST International, the world’s largest supplier of investment management software, announced the strategic alliance which will result in the creation of TOWER Trust Fund Services - the country’s leading supplier of outsourced back-office services.

TOWER Trust Fund Services General Manager, Mark Paterson said the alliance combines the strengths of two organisations who are already leaders in their fields to create a service that will be of value to all New Zealand financial institutions and investors.

“Back-office services are an essential resource for all financial institutions because they provide the ‘engine-room’ administrative capacity. However, all too often the service is treated as a poor relation of the ‘front-office’ operation, which tends to be the primary focus in a competitive market place. In these circumstances, outsourcing the administrative side of the operation can be a sensible option,” Mr Paterson said.

“Until today, the only providers of outsourced investment administration services were based overseas. TOWER Trust Fund Services will now offer the very best in such services right here, utilising our local specialist market knowledge.

“This will not only see New Zealand investors and institutions able to access a world class level of service but will also preserve local employment opportunities and generate economic activity.
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“The alliance with DST International will reinforce our position as industry leaders in third-party administration and enable us to exploit growth opportunities both within New Zealand and overseas.

“DST represents the industry standard internationally. Our strategic alliance will ensure the supply and continued development of world class funds management software and workflow technology.

“As a result, TOWER Trust Fund Services will be positioned to provide a wide range of investment administration services and ‘front office’ investment management bureau services for institutions who see the value of outsourcing.”

Mr Paterson said the new alliance was underpinned by the fact that most of TOWER Trust’s major clients and potential clients already utilise DST International systems or software.

DST International’s Managing Director, Ian Mathieson, said that he was extremely pleased with the opportunities created by the alliance with TOWER Trust.

“For some time, we have been seeking an alliance with a skilled and knowledgeable operator in the New Zealand market. TOWER Trust is exactly that,” Mr Mathieson said.

“This alliance will give New Zealand investors access to levels of service that equal or exceed those available anywhere else and will give fund managers the level of cost effective administration and decision support they need to compete.

“With the powerful combination of TOWER Trust’s local expertise and DST’s global experience, we will be able to build a very strong operation here based on models we have successfully established in other markets.”

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Background Information - TOWER Trust

Established 117 years ago, TOWER Trust is the country’s oldest trustee company. It is now the foremost provider of specialist corporate trustee and investment administration services in New Zealand.

A subsidiary of the TOWER Financial Services Group, TOWER Trust has become recognised as a market leader for its record of innovation and the performance of its specialist professional teams based in Auckland and Wellington.

It offers a broad range of financial and investment services to both corporate and personal clients. It currently supervises and manages assets worth NZ$21 billion on behalf of its client base.

TOWER Trust acts as trustees under the Unit Trust Act 1960 for New Zealand domiciled unit trusts, as trustee to superannuation schemes and has been providing specialist custody services to leading institutions and fund managers ever since.

The securitisation of financial assets, such as mortgages, has substantially developed in New Zealand over recent years, with TOWER Trust’s corporate team being at the forefront of almost all of the recent securitisation issues.

Background Information - DST International

DST International (DSTi) is the world’s leading provider of software for the investment management and managed funds market.

For over 17 years, DSTi has concentrated on the development and implementation of asset management and work management systems, working with clients as business and technology partners, satisfying their corporate needs and offering them complete software and service solutions. Their systems are used by more than 500 clients in 40 countries worldwide.

DSTi’s asset management systems have been designed to satisfy all functions and facilities required by fund managers, dealers, settlement staff custodians and record keepers operating as international asset managers. Their products cover a wide variety of asset management styles and accounting conventions, with instrument coverage extending to international bonds, equities, forward contracts, fixed interest investments, cash and foreign exchange. DST International is also one of the world’s foremost vendors for work management, telephony and e-commerce solutions.

DSTi’s parent is Kansas City-based DST Systems Inc; the largest provider of outsourced fund and investment services in the USA. The 1998 revenues for DST Systems Inc. totalled US$1.1 billion. DST Systems is on the New York Stock Exchange listed with a market capitalisation of over US$4 billion.

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