The attraction of the Government's multi-billion superannuation fund and New Zealanders' enthusiasm to invest money offshore has prompted the world's fourth largest fund manager to establish an office in Auckland.
Deutsche Asset Management (DAM), which is part of the Deutsche Bank group, intends to offer a whole range of offshore funds to New Zealand pension schemes, institutional managers, financial planners and high-net worth individuals.
Products to be offered to the market include index-enhanced equities, absolute return funds, currency overlay and global fixed interest. No New Zealand domiciled funds will be offered.
Kevin Stirrat who has been a director of Deutsche Bank's fixed income operations here for the past seven years is heading the New Zealand operation.
"The focus for us is very much on the wholesale market with a strategic focus on the increasing allocation of assets offshore," DAM chief executive Brian Scullin says. "We see the greater allocation to offshore assets by New Zealand pension funds and institutions as a real opportunity for global players such as Deutsche."
Stirrat says he is still working out how the firm was going to approach the market, however all the funds will be distributed through third parties, rather than directly to the public.
He says DAM already has some clients in New Zealand and it is keen to build up the number of relationships it has.
An added attraction was the Government's super fund: "Clearly that's part of the strategy," he says.
DAM operates in Australia and could have run operations out of that country. Stirrat though says it is important for the business to "be based on the ground" in New Zealand.
Deutsche is already active in New Zealand in the mergers and acquisitions and global markets.
DAM has more than $44 billion of assets under management in Australia and New Zealand, and $1.4 trillion globally.
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