Tower hooks up with the postie
Tower has linked up with one of New Zealand's most popular retail outlets to sell a range of managed funds.
Tower has linked up with one of New Zealand's most popular retail outlets to sell a range of managed funds.
New Zealand Post, which has an estimated 800,000 people through its doors each week over a nationwide chain of Post Shops, will begin selling a number of Tower managed funds at selected stores later this year.
Richard Baker, general manager investment products at Tower, says if the concept takes off there is a "huge growth potential" leveraging off the distribution New Zea-land Post offers.
"Distribution is the name of the game. In this case it's a two plus two equals five situation," Baker says.
He says a trial, beginning in September at the earliest, at a selection of Post Shops has been scheduled to sort out technical issues.
"The trial will enable us to fine tune all the systems and processes before we start the full roll out next year," Baker says.
While many details, including the branding, are yet to be finalised Baker says a range of managed funds and possibly a master trust product, aimed primarily at the 'mums and dads' market will be on sale at the Post Shops.
"The products will be very competitively and transparently priced," Baker says.
He says while New Zealand Post staff will receive training from Tower they will not be offering financial advice with the products.
"Anybody wanting further advice will be referred to the Tower internet site or freecall phone number."
Head of New Zealand Post Enterprises, John Allen, says the deal allows its customers to make investments over the counter using the company's secure Post-Link system.
"Simplifying the investment process and providing these products through our na-tionwide network of Post Shops will bring the opportunity to make savings and in-vestment decisions to a far wider audience," Allen says.
He says the Tower deal is part of New Zealand Post's strategy to provide financial services but is not directly related to its work on banking services.
New Zealand Post has been floated as the potential face of the so-called 'People's Bank' - an initiative of Alliance leader and deputy Prime Minister Jim Anderton, to provide a low fee banking service.
Baker says while Tower and New Zealand Post were in talks well before the 'People's Bank' hit the headlines it is a happy coincidence.
"The 'People's Bank' concept is very apposite to what Tower is doing with New Zea-land Post," Baker says.
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