Local favourites fight for Perpetual
Kiwibank has emerged as a possible buyer of Perpetual’s financial adviser business, with sources saying it is one of the main contenders left.
Friday, October 12th 2012, 7:04AM
After selling Perpetual’s corporate trustee business, Pyne Gould Corporation is looking to sell the rest of the company, and it looks like two popular New Zealand-owned banks are in hot competition for this part of the business.
A source with knowledge of the sale process said Kiwibank is one of the companies including Southland-based SBS Bank looking to buy the advisory business, a purchase that according to the source would make sense for both companies.
The state-owned bank recently bought Gareth Morgan Investments but its adviser distribution doesn’t match its recently acquired KiwiSaver clout, with its funds under management now more than $700 million in KiwiSaver and more than $1.2 billion overall.
Kiwibank has only 16 authorised financial advisers (AFAs), a much lower number than most of the big Australian-owned banks.
Meanwhile, Perpetual has 11 AFAs nationwide who have a combined $332 million in funds under advice.
Perpetual’s nationwide team of advisers would give Kiwibank an instant boost in that regard and would reduce the risk of its new KiwiSaver clients being poached by other banks, the source said.
“They [Kiwibank] are just out there looking to buy everything at the moment.”
Kiwibank spokesman Bruce Thompson said Kiwibank“does not comment on speculation. It neither confirms nor denies market rumours, so no comment.”
SBS Bank has also refused to comment on whether it is interested, but the source said it was in a similar situation to Kiwibank with regard to its adviser force, which features seven AFAs.
“SBS doesn’t have many advisers but it has a very good funds management platform with FANZ (Funds Administration New Zealand).”
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