Tower declares war on costs

Tower Managed Funds, the merged Tower Trust Services and Trustees Executors group, has been launched.

Friday, October 2nd 1998, 12:00AM

by Philip Macalister

Tower Managed Funds (TMF) is the new name for the merged Tower Trust Services (TTS) and Trustees Executors (TEA) group, managing director Jim Minto says.
The merger has led to a rationalisation of funds from 33 to 20. The funds which are being closed to new investment are those which had not grown significantly in recent years.
Minto says Tower will be able to extract efficiencies from its funds management operation by merging TTS and TEA.
TMF has more than $800 million under management and has declared its intention to lead the industry in lowering costs and generating efficiencies.

"There are far too many small retail funds in the market, all of them bearing the same fixed costs (such as investment statements, prospectuses, audit fees, legal fees and administration of unit holder registers) as larger funds," Minto says.
"That's a lot of duplication, and realistically, any fund of less than $10 million isn't going to be delivering an acceptable return to investors."
Minto says there will be no fee increases or changes to unit pricing as a result of the merger. Also, all TTS's 22 and TEA's eight staff have kept their jobs.
IPAC Securities describes the merger as "a positive change".
The new range of funds is:

The NZ Range

The Spotlight International Range

TORTIS Range

Tasman Range

NZ Equity Trust

Spotlight Europe Fund

TORTIS - International

Tasman Balanced Growth

Multi-Sector Fund

Spotlight Emerging Europe

TORTIS - New Zealand

Tasman Conservative Growth

FirstRate Account

Spotlight Asia Fund

TORTIS - OZZY

Tasman Income

MortgagePlus Fund

Spotlight Latin America

  

Tasman Long Term Growth

BondPlus Fund

Global Fund

    

CorporatePlus Income Fund

GAM Global Gateway Fund

    

SuperPlus Income Fund

GAM Multi-Emerging Markets Fund

    

PropertyPlus Fund

GAM Multi-Trading Fund

    
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