Tower shakes up management
The Tower Group has gone through an extensive restructure in a bid to make better use of its distribution capabilities and reduce costs across the group.
The Tower Group has gone through an extensive restructure in a bid to make better use of its distribution capabilities and reduce costs across the group.
The new structure will bring together Australia and New Zealand operation under one management hierachy.
Current Tower Life Australia managing director Ken Boag will become chief op-erating executive overseeing distribution, marketing and servicing. Over time, his responsibility for Tower Life Australia will be passed on as part of the require-ments under the Financial Services Reform Bill.
Boag will join group managing director James Boonzaier on the boards of the Tower Group companies. At the same time, Boonzaier will increase his focus on group strategy, shareholder returns and strategic developments overseas.
Tower Trust Australia and Tower Trust New Zealand will unite under a single banner headed by, the successor to retiring managing director Brenton Wood, who is yet to be announced.
Tower Asset Management (TAM) in both markets will merge under a single name with current managing director of TAMNZ Paul Bevin heading up the unified asset management arm. The head of the Australian funds management arm, Derek Goodyer, has quit the group following a tumultuous time for the group in the past year which included the departure of four key members of the Australian equities team.
In New Zealand Tower Managed Funds (TMF) and Tower Investment Savings (TIS) will join under the banner of the former. TMF is responsible for the unit trust business while TIS covers superannuation and savings in New Zealand for the group. The combined company will be headed by TIS managing director Stuart Fish and have funds under management of $3 billion.
Tower expects to save about $5 million annually from the restructure, starting next financial year.
AUTHOR
Jason Spits
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