A grand coalition of fund managers?
Now here's an idea to set the cat amongst the pigeons.
Sunday, July 13th 2003, 10:56PM
Now here's an idea to set the cat amongst the pigeons. What if, in times of difficulty, all the funds management industry banded together to grow the overall pie, and provide investors with some additional confidence in their products. A couple of recent events have engendered this thought.
One is an article by the FPIA in the Chartered Accountants Journal giving readers some comfort in the overall security and positive aspects of managed fund products.
The other was a proposition floated to me by a senior figure in the industry.
He suggested that maybe the funds management community should have got together and supported companies like Tower and AMP during their times of corporate difficulty, as undoubtedly they have suffered “brand damage” with clients, and that has a flow on effect to all managed funds and life companies.
The message the industry would put out would go something like this. These companies are having problems because of decisions made in the boardroom about expansion and corporate issues. The underlying businesses in New Zealand are still fine, and investors in managed funds products are safe as the money is held and controlled by trustees, not the company.
That message would be nice in retrospect as the markets have had a good quarter and investors should be feeling (slightly) better.
On the other hand, if no-one else will help them, it’s pleasing to see that Tower Asset Management can put on soirees and celebrate with its clients some recent achievements - such as being named Infinz Fund Manager of the Year, and winning some awards for the Bayfair property development in Tauranga.
On this same theme of help and reward, it’s interesting to see that AMP are prepared to shell out money to help their advisers through times of difficulty (even if NZ advisers have been somewhat underwhelmed by what's on offer).
See story:
AMP advisers unhappy with offer
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Till next week Philip Macalister Special Offers
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