National Australia Bank (NAB) owned fund manager MLC has written to investors and advisers in New Zealand telling them that they are going to stop promoting their funds in this country.
The key fund in the MLC MasterKey series which has attracted money is the MLC Platinum Global shares fund.
Although MLC has had next to no presence in New Zealand the fund, which is managed by Kerr Neilson's Platinum Asset Management, has been supported.
NAB's local subsidiary Bank of New Zealand says that while MLC is removing its investment statement, it is looking to push MLC funds in this country.
"Our intention is to leverage off the MLC relationship in the next few months," BNZ Investments and Insurance general manager Rodger Murphy says.
MLC says it is discontinuing its New Zealand investment statement says support has been "relatively poor and has been heavily concentrated into one or two funds."
"To increase this level of support would require a substantial change to the way in which we service investors in New Zealand."
It also says that changes in the regulatory environment have had a bearing in the decision.
MLC says it is "reticent to withdraw our offer from New Zealand investors however it has become very clear that to appropriately service this market would require major investments in time and money. We do not believe it was appropriate to continue with this offer until such an investment takes place."
MLC says people already invested in the fund won't be effected by the move, rather it won't accept new money.
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