Aussie managers find ready market in NZ
Australian fund managers are on the map in New Zealand but have been cautioned from rushing into the sector unprepared according to a New Zealand-based industry consultant.
Heathcote Investment Partners director Clayton Coplestone said the New Zealand market had less than 10 equity managers offering funds to investors and Australian based equities managers could move into the sector quite easily under Trans-Tasman mutual recognition scheme.
Under this scheme managed investment schemes which have been approved by a regulator in their home market can be offered into a host market without the need to comply with many regulatory requirements of the host market.
Coplestone said the managed funds market in New Zealand was undergoing rapid growth and there was a shortage of good products with investors keen to move beyond property and the local stock market. However he urged restraint from Australian managers until they had developed a reputation and level of trust with local investors.
"Managers will need to be seen as a trusted provider in one area before they can expand but also be aware the Financial Markets Authority (New Zealand's corporate regulator) is armed to the teeth. Punters have low levels of trust in many cases and politicians are listening to their constituents about these concerns," he said.
"We have our own batch of local celebrity investors who get traction but consistently fail over the longer term. New entrants should bring a simple story and establish their brand and open a crack in the door."
Recommended for you
As ASIC chair Joe Longo pushes firms to prepare for the upcoming mandatory climate disclosure regime, what skills are necessary if firms are looking to expand their ESG teams?
First Sentier Investors has announced it will close four of its Australian investment teams amid a simplification of the business, with $14 billion expected to be returned to investors.
Over 90 finalists have been chosen to compete at the 36th annual Fund Manager of the Year Awards, to be held in Sydney on 13 June.
Clients may be asking their adviser whether there is still value in the US technology names after their rally, but Fidelity International’s Lukasz de Pourbaix believes they can still offer upside.
