It's all coming together nicely...at the National BanAr

The National Bank and Countrywide Bank are in the process of merging their funds management businesses.

Wednesday, May 26th 1999, 12:00AM

The National Bank's plans to merge its funds management business with Countrywide Bank is in stark contrast to that of the Colonial group.
Colonial, which acquired Prudential last year, recently announced an aggressive rationalisation plan which will see all the Prudential unit trusts, plus a couple of the Colonial First State ones, suspended for three months then closed.
Unitholders are being given an ultimatum: switch to a new fund or cash-up.
National Bank, which bought Countrywide last year, is taking a softly, softly approach to its merger.

Instead of forcing unitholders to make a decision within a three-month period, it will be closing most of its funds to new investment and encouraging people to migrate across to other similar funds.
This strategy reflects a key difference between the National Bank/Countrywide merger and the Colonial/Prudential one.
That is, National and Countrywide have a very similar line-up of managed funds, so encouraging a migration is relatively easy.
"We considered the Colonial option, but our customers said they don't like it," says Rob Wood, the new manager for the merged National Bank funds management operations.
He says the migration is also an opportunity to talk to customers and sell more product.
Wood says the National Bank Financial Services (NBFS) will be incorporated into Countrywide Funds Management and the merged business will be renamed and will be a separate business entity rather than a division of the bank.
NBFS will move from Wellington to Auckland in July and Wood will head up the organisation.
In recognition of the growing importance of funds management Wood is being appointed to the bank's executive committee.
The merged business will utilise all the distribution channels, including its branch network and the independent financial advisers.
"We are totally committed to the independent financial advisers," he says.

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