Billion dollar baby

Tower Managed Funds' Christmas has come early this year.

Wednesday, December 22nd 1999, 12:00AM

Tower Managed Funds' Christmas has come early this year. The company says that it has cracked the $1 billion net funds under management mark.

When the company was formed in November 1998 through the marriage of Tower Trust Services and Trustees Executors it had about $760 million.

"In just over 13 months the company has experienced exponential growth and has this week reached the $1 billion (net) mark, a figure well ahead of predictions," general manager Richard Baker says.

Since the merger TMF has rationalised a number of overlapping, declining and unprofitable investment funds and made enhancements to existing products and services.

A number of new funds have been added including the first Euro currency account offered to New Zealand investors through the FirstRate Account. Other key events this year included the new Southland Building Society Growth Fund and the launch of the GAM Global Opportunities Trust.

Baker says reaching the $1 billion mark is an indication of TMF's innovative and consistently performing funds. A number of funds have experienced large funds inflows including Tortis Ozzy (FUM $150m), Tortis International (FUM $100m), MortgagePlus (FUM $200m) and the FirstRate Account (FUM $85m).

"Reaching $1 billion is a significant milestone for us. A large part of our growth has come through our extensive international range. Over the last year while the New Zealand sharemarket has shown only modest gains, and interest rates have been at record lows, many investors have discovered a strong investment result was possible through international exposure."

Along with the growth in funds under management, the TMF's customer base grew by around 10 per cent, bringing the number of clients to over 35,000.

"This is a direct result of the continued development and fostering of relationships with financial advisers and administration service providers, as well as a reflection of our improved customer retention rates mainly through the delivery of a consistent level of service and performance."

Tower was finalist in the IPAC Fund Manager of the Year Awards this year (for the fifth consecutive time), it won the international equities section of the awards. Tower also was a major sponsor of the Financial Planner of the Year Awards (organised by Good Returns), and supports Hospice New Zealand.

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