Australian manager challenges the market

One of Australia's more innovative fund managers lays down a challenge to the New Zealand market.

Friday, July 21st 2000, 12:00AM

A new look, expansive Challenger International is being launched in the market today (Friday).

Australian-based Challenger, which is best known for its Endowment Warrants, bought Coronet Asset Management last year and is now looking to further expand its range of investment options.

New Zealand executive director John Rowley says Challenger plans to roll out a UK-based Open-Ended Investment Company (OIEC) in August, plus it was in the process of establishing a life office in New Zealand.

The OEIC is a Global Asset Management (GAM) Australasian equity fund managed which Challenger provides advice to. (Until earlier this year Challenger provided advice to the New Zealand Investment Trust which is a UK investment trust that is dual listed in London and New Zealand).

Rowley says the Coronet equity fund will be "moved up a notch", with the launch of the GAM fund.

The Coronet fund which started life as a actively managed New Zealand share fund, then became an Australasian fund will now become an international equity fund.

Rowley says 12 per cent of the portfolio is already invested in the Japanese market through the Australian based manager Platinum Asset Management, headed by guru Kerr Nielson.

Challenger, which is one of the biggest players in the strongly growing annuities market in Australia, is setting up a life office here so it can offer similar products in New Zealand.

As part of the rebranding of the company Challenger is changing the name of its Portfolio Endowment Warrants.

Rowley expects the company will continue to roll out more products in the market over the next year.

He says the company aims to bring new levels of product innovation to the New Zealand market.

"We see ourselves as giving the local investment and savings market something of a shakeup through the innovative savings and investment products which are easy to access and perform well for investors."

He says plans to list the company in New Zealand are in abeyance until the outcome of merger negotiations between the Australian and New Zealand stock exchanges is known.

To help promote the expanded range of products in New Zealand the company has employed a third business development manager who starts in August.

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