Weekly briefs

Tax laws force change, WestpacTrust appoint new manager, First State withdraws

Friday, January 16th 1998, 12:00AM

Change forces change
A change in Australian tax laws has prompted New Zealand Funds Management to change the manager of its Global Small Companies Trust.
Management of the $20.2 million trust will move from Capital International to Boston-based Wellington Management Company.
Wellington currently manages NZ Funds' Global Equity Growth and Global Property and Infrastructure Trusts.
Capital hasn't been replaced because of performance, rather the fund has done well recently posting net returns of 5 per cent and 16.6 per cent in the past month and year respectively.

NZ Funds says its desire to continually ensure it is utilising the best manager for the trust in the existing investment environment was the logic behind the move.
In this case a change in Australian taxation regulations has meant Capital's small companies fund, which NZ Funds access through Australia, has become disadvantageous to New Zealand investors.
NZ Funds says it had anticipated this change so had, for some time, been looking for an alternative manager.
The mandate for the fund will remain similar to what NZ Funds had with Capital.

Westpac appoints Salomon
Westpac Financial Services has decided to follow the industry trend and appoint an external manager for its International Fixed Interest Trust.
From January 5 management of the trust moved from Westpac to Salomon Brothers Asset Management Ltd.
The move reflects the trend for offshore funds to be managed offshore and it reflects Westpac's "unease with a single resource managing both fixed interest portfolios."
"The appointment of Salomon will enable our fixed interest manager Michael Mitchell to now focus exclusively on the management of New Zealand fixed interest sector," Westpac national client relationship manager Glenys Wilson says.
The change of manager is also expected to lift the fund's performance.
She says Salomon specialised in multi-currency, fixed interest portfolios, and has about US$3.6 bill under discretionary management in this sector.
Its strengths are its extensive research capabilities, its sophisticated quantitative analysis and its unique approach to the measurement and monitoring of risk.
Westpac will continue to manage the fund's currency exposure.

Another Ozzy withdraws
Another Australian fund manager has pulled back from the New Zealand market.
Colonial subsidiary First State has withdrawn its retail prospectus in New Zealand and can no longer accept new money from investors.
Instead investors can gain access to its management expertise through First State's strategic alliance with fellow Colonial subsidiary, Joseph Banks.
First State was contracted to manage the Joseph Banks Australian Equity Trust last year. Now it is actively involved in managing the assets of the Joseph Banks Tasman Select Equity trust, Tasman Equity superannuation plan and Joseph Banks Resources Trust.
The alliance combines First State's management expertise with Joseph Banks products, brand and administrative services.
"We firmly believe that this partnership will offer the New Zealand financial planning community an ideal combination of proven international equity management expertise and extensive local experience," First State chief executive Chris Cuffe and Joseph Banks chief executive Bruce Abraham say.

« Don't do it

Get your tax questions answered online »

Special Offers