New funds management firm emerges

Sharebrokers Craig’s Investment Partners is setting up a standalone fund managers which will be run by two highly-regarded investment managers.

Tuesday, July 1st 2014, 5:59AM 6 Comments

Craigs already has more than $250 million of funds under management in its PIE funds and is looking to grow this business.

The two directors of the new business are Andrew South and James Ring. They are joined by two analysts Roy Cross and Stefan Stevanovic.

South is the former chief investment officer at now-defunct Brook Asset Management.

Ring has had extensive experience in the funds management industry spanning 29 years. His last role was investment manager at Rank Group managing the US-based Reynolds Group Pension Funds, where he was responsible for managing the asset allocation and global equities portfolio.

“This team will form a new funds management business, creating a fourth platform to Craigs existing business structure,” managing director Frank Aldridge says.

“The new funds management business will remain a wholly owned subsidiary of Craigs, although separate from Craigs in both a physical and operational sense.

As a stand alone independent entity, it will have its own company name and branding which will be announced later this year.

The three other arms of the Craigs business are: Private Wealth, Institutional Equities and broking arm Deutsche Craigs.

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Comments from our readers

On 1 July 2014 at 9:00 am Fred said:

Great! Some real choice and innovation for Kiwi investors.
The experience of both parties brings immense comfort to the new venture.

On 1 July 2014 at 11:51 am brent sheather said:

Some NZ only closed end funds with no performance fees and reasonable mgmt. fees would be nice

On 2 July 2014 at 8:52 pm Graeme said:

I agree Brent.

Would you also charge your clients an "establishment fee" if they opted to include the new fund in their portfolio?

On 3 July 2014 at 11:24 am Brent Sheather said:

Hi Graeme

We do not charge our clients establishment fees on new issues or new investment funds where our clients have to complete an application form. In the case where the issuer pays a commission, if the individual clients are easily identifiable we rebate the commission to our clients. Where the individual clients are not easily identifiable we donate the commission received to various NZ charities.

On 3 July 2014 at 7:43 pm Graeme said:

If you included a fund like this new one in a portfolio for a new client, would you charge the transaction fee you refer to here: "PAM is a fee based adviser which means we charge a flat transaction fee – usually 1% to 1.5% of the sum invested to implement a portfolio recommendation."

If not, when do you charge this "transaction fee"?

On 4 July 2014 at 12:17 pm Brent Sheather said:

Hi again, no we would not charge the implementation fee on this fund for new clients or existing clients. In addition any brokerage would be donated to Forest & Bird or similar.

We charge the transaction fee primarily on secondary market transactions. This isn’t a big issue because we don’t participate in many IPO’s.

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