Investment and financial services group MFS plans to expand its existing New Zealand operations with the purchase of Swain Investment Services, its second New Zealand-based financial advisory firm purchase for the year.
Swains Investment Services (Swains) provides independent investment, estate planning and financial advice to more than 1,500 New Zealand clients. Swains has funds under management and advice of around NZ$230 million.
Earlier this year, MFS bought Northplan Group, which has more than 3,400 clients and funds under management and advice of around NZ$670 million.
MFS New Zealand chief executive Jason Maywald said the group plans to re-brand Northplan Group as Vestar Investment Specialists before merging the renamed entity with Swains and subsequently into MFS’s existing New Zealand business.
“We see Swains as forming the cornerstone for the expansion of MFS New Zealand into the South Island, and establishing Vestar as a truly national firm of advisers,” Maywald said.
“This transaction is another step in our plans to create a significant New Zealand financial services provider, with businesses operating in the funds management, financial planning, investment banking and property structured finance sector,” he said.
Since acquiring the Northplan Group, MFS has restructured its business into a number of operating divisions. As part of the restructure, MFS has created a new business that will provide New Zealand financial advisers with cost-effective management of all aspects of their back office, including compliance, product research, marketing and client portfolio asset allocations. The new business is slated for a June 2007 launch.
The company restructure will also see the Northplan Group re-branded to Vestar Investment Specialists. The name change and re-branding was implemented as part of MFS’s strategy to create a single advisory firm operating under one brand, with a reach across both the North and South Islands of New Zealand.
MFS is a funds management and investment company engaged in a diverse range of investment and financing activity throughout Australia and New Zealand. The group has more than $4 billion in assets under management.
