TOWER investments sold to Fisher Funds
After months of speculation, TOWER has sold its investment business, including its default KiwiSaver scheme, to Fisher Funds for $79 million.
Tuesday, February 26th 2013, 9:22AM
by Susan Edmunds
TSB Bank will become a shareholder in Fisher Funds, with a 26 per cent equity interest. The deal is expected to be complete in April.
Fisher Funds already has more than $1.4 billion in funds under management.
TOWER group managing director Rob Flannagan said the decision was a result of a strategic review. “This evaluation was undertaken primarily to identify opportunities for TOWER that would provide value for shareholders.”
TOWER’s health insurance business was sold to nib holdings in November.
Flannagan said the focus for TOWER now would be on its core insurance business.
Employees will transfer to Fisher Funds with the business.
Carmel Fisher, managing director of Fisher Funds, said it was an opportunity to achieve economies of scale that could be passed on to clients.
The sale will likely push Fisher Funds up the KiwiSaver rankings to fifth in terms of membership numbers and funds under management, above AMP.
Data shows Fisher managed $660 million in its scheme while Tower KiwiSaver reported funds under management of almost $900 million at the end of last year, compared to AMP's $1.48 billion.
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