by David Chaplin
FNZ, previously known as the First New Zealand Capital wrap, administers more than $3 billion in New Zealand for institutional clients including BNZ, Tower, ING and AMP as well as financial planning firms such as Professional Investment Services.
Late in 2005, FNZ scored a major coup by winning the contract to create a wrap for UK financial services giant Standard Life. The deal was worth over $100 million to FNZ, which has since also won the right to provide the investment administration system for the Axa UK wrap.
According to a recent Standard Life press statement, as at the end of September this year its wrap service has about £1.6 billion in funds under administration, representing over 330 independent advisory firms and 14,300 underlying clients. The result was a 45% increase compared to the end of December last year when the Standard Life wrap boasted £1.1 billion in funds under administration, sourced from 209 advisory firms and 8,100 clients.
However, over the same period the average client holding in the Standard Life wrap has slumped from £133,000 to £114,000. It is understood FNZ charges about 20-30 basis points for its services.
FNZ’s major rival in New Zealand, the ASB-owned Aegis platform, has also been rumoured to be on the block. However, an Aegis spokesperson denied a sale was being considered.
According to its latest accounts, Aegis returned a net profit of about $2.4 million in the year to June 30, 2008, down from $2.6 million in the previous period.
On July 1 this year ASB Bank bought out 100% of Aegis shares from sister firm Sovereign. Both ASB and Sovereign are owned by the Commonwealth Bank of Australia.
As at press time FNZ was unavailable for comment.
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