by Paul McBeth
Armstrong Jones is now going the OEIC route and will unveil a range of these beasties, managed by Edinburgh Fund Managers, at roadshows later this month.
Not that long ago, AJ said it would launch a series of Baring UK-authorised unit trusts. However, those attending last month's roadshow to learn about these were told that things had changed (see earlier story).
They were told that a UK trip by AJ's Managing Director Paul Fyfe led to his more fully appreciating the scope of offshore products, and that meetings with London lawyers and accountants were exploring more innovative, tax-efficient methods for Kiwis to invest.
So, it's UK open-ended investment companies (otherwise known as OEICs and pronounced oiks) and a switch of manager instead.
Scottish-based Edinburgh Fund Managers is already familiar to some New Zealand investors through its management of the UK-listed Edinburgh Worldwide Investment Trust. However, while Armstrong Jones has a connection with Baring through their common parent ING, there's no family tie-up with Edinburgh.
AJ's National Sales Manager Wayne Becker: "We have been exploring the UK to try and find a solution.... Edinburgh was one that, we believe, stood out".
Becker said the switch to investments managed by Edinburgh did not rule out dealing with Baring in the future.
"But Barings at that stage weren't able to offer OEICs into the marketplace."
Becker said that OEICs were introduced in 1997 in the UK and were "a little bit more flexible than a unit trust", although they too were intended to provide investors with diversification.
The way was paved for offering UK-authorised unit trusts and OEICs in New Zealand almost a year ago, when the Securities Commission granted an exemption to allow their promotion just with their British offer documents plus some extra information. Part of their appeal, as with UK-listed investment trusts, is that they don't pay or provide for capital gains tax and they offer Kiwi investors geographical diversification.
AJ's roadshows run in nine centres nationwide from November 27 and will introduce Edinburgh and its range of OEIC funds, with the help of Edinburgh Partnerships Director Alan Bathgate.