Renouf, the name associated with the birth of unit trusts in New Zealand is to vanish.
Niche fund manager Renouf Asset Management (RAM) has been sold to Wellington-based sharebroker Direct Brokerage for an undisclosed sum.
The sale comes hard on the heels of the death of Sir Francis Renouf -the man who introduced managed funds to New Zealanders in 1960.
RAM director Stephen Underwood says the sale is for family reasons, and relates to succession planning issues.
Underwood and his wife (who is one of Sir Francis' daughters) bought Renouf Corporation and on-sold RAM to Direct.
He says the plan is to merge the business with Direct Funds Management, which currently has one fund - a cash management trust. The Renouf funds will be rebranded under the Direct Funds label.
Underwood, as a director alongside Direct managing director Nigel Wynn, will continue to be involved in the business.
He says the benefits of the sale are two-fold. On one hand many of Direct's clients may be interested in using the Renouf funds. For instance the two passive equity funds may appeal to investors who don't want to directly hold New Zealand shares.
On the other hand Direct will be able to promote its execution and order sharebroking services to intermediaries.
RAM is planning to launch two new funds in November. One will be an international emerging companies fund and the other a privatisation fund, which partially invests into a Channel Islands-based privatisation fund.
Business development manager Mark Cooper has returned to the United Kingdom for family reasons.
Renouf, the name associated with the birth of unit trusts in New Zealand is to vanish.