Liontamer director (and former BT staffer) Michael Lodge says this is an opportunity to build some funds under management.
He says Liontamer has put plans for a new commodity fund on hold; instead it is planning to roll out a capital protected international share fund.
No details are yet available as a prospectus has not been registered. However the Liontamer funds model is to have fixed term capital protected funds that have their performance linked to an index or basket of indices. Some of its funds have also had so-called “booster” elements that can enhance final returns.
Lodge says it makes sense to try and capture some of the $185 million sitting in the funds that BT and Westpac are closing.
BT will be offering unitholders either a redemption or a reinvestment option.
Lodge expects that some of this money will find its way into bank deposits and finance companies however unitholders who want to keep their exposure to international shares will be looking for options.
He says Liontamer’s product is different to the traditional international share funds and may prove attractive, especially after recent losses in this sector, because of its capital protection.
An added plus from his perspective is that other providers have withdrawn funds or not gone ahead with recent launches.
Lodge says that advisers had been asking for another international fund, and that this was a way for Liontamer to demonstrate it is “committed to the New Zealand retail market”.
Meanwhile Dorchester-owned Moneyonline is also chasing BT money. It has made “special arrangement(s) with three other highly regarded fund managers” for investors to move into their funds for free – no entry fee will be charged.
It also says it has negotiated special rates with finance companies for those investors who wish to re-invest in fixed rate debentures.
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