Managing director Paul Fyfe confirmed that AJ will soon be offering trusts from its parent company, Barings, in New Zealand.
The irony of this decision is two-fold. Firstly many in the industry have perceived AJ and Fyfe to be dead against having tax-advantaged UK funds in the New Zealand market. Secondly, two other firms, Ord Minnett and MoneyOnline, have already gone through the regulatory process to allow Barings funds to be sold in this country.
The general perception in the market place is that Fyfe, who is also chairman of the Investment Savings and Insurance Association, has been one of the protagonists lobbying the Minister of Finance to have the UK trusts banned in New Zealand or treated the same as New Zealand domiciled funds (that is pay capital gains tax).
Fyfe says he has talked to the minister on a number of occasions about this matter. His view is that it is "ludicrous" that these foreign funds should enjoy a tax advantage.
He says the best solution is that all funds are put on a level playing field. That is the capital gains tax should be removed from NZ funds.
In the meantime AJ has taken the 'if you can't beat 'em, join 'em' position and decided to promote a range of Barings funds here.
Baring Asset Management (Asia) Ltd managing director Syd Bone will introduce Baring's UK authorised unit trusts to advisers at Armstrong Jones's nationwide roadshow in early October (for details see the Diary).
In making this move AJ joins AMP, Royal and SunAlliance, the Public Trust and Challenger as promoters of UK funds in New Zealand.
Royal & SunAlliance plan to launch 10 funds at a roadshow early next week.
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