Post Shops Look To Offer Managed Fund Products

For immediate release 23 June 2000

POST SHOPS LOOK TO OFFER MANAGED FUND PRODUCTS

New Zealand Post and TOWER are exploring opportunities to provide managed fund products through the nationwide network of Post Shops. It is anticipated that the managed funds will be trialled in a limited number of Post Shops later this year.

Chief Executive of New Zealand Post Enterprises John Allen and TOWER Group Managing Director James Boonzaier said the managed fund products would be specifically tailored towards the savings and investment needs of Post Shop customers.

“The complicated nature of traditional managed funds and the process required to invest in them has generally limited their appeal to the wider public. At the same time there is a real need for the New Zealand public to increase their level of savings, particularly for retirement,” Mr Boonzaier said.

“We are developing a new category of managed fund based on competitive pricing, simple structure and attractive features that will lower the barriers to entry and reduce the disincentives to savings and investment.”

Mr Allen said Post Shop customers would have access to investment statements and prospectuses and the ability to make their investments over-the-counter through New Zealand Post's secure Post-Link system.

"Simplifying the investment process and providing these products through our nationwide network of Post Shops will bring the opportunity to make savings and investment decisions to a far wider audience.

"This further enhances the value and convenience of our Post Shops, recognised as trusted and reliable centres for payments and transactions in communities around the country.”

Mr Allen said the development of managed funds products with TOWER was consistent with New Zealand Post’s strategy to provide a range of financial services through Post Shops but was not directly related to ongoing work on banking services.

ENDS

For further information:
Simon Taylor, New Zealand Post Media Relations Manager
04-496-4015 or 025-248-6715

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