Alliance Capital joins with AXA Asia-Pacific
AXA has turned up the heat under investment management in New Zealand, by announcing its intention to establish Alliance Capital Management New Zealand
Wednesday, November 29th 2000, 2:58PM
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"We’re really enthusiastic about this new venture – and we’re looking forward to giving financial advisers here a taste of what Alliance Capital can really do in terms of outstanding performance, and cutting-edge products", says Thyne. "Many other fund managers are moving to Australia or closing there doors altogether in New Zealand – but Alliance Capital is really bucking the trend by taking up a new position here. |
AXA has turned up the heat under investment management in New Zealand, by announcing its intention to establish Alliance Capital Management New Zealand - a joint venture between AXA Asia Pacific Holdings and top performing U.S fund manager, Alliance Capital Management L.P.
James Thyne, manager designate of Alliance Capital in New Zealand, says that AXA’s retail and wholesale fund management clients will gain access to Alliance Capital’s enormous research capability and the proven investment philosophy and methodology of Alliance capital, which is among the world’s top fund managers.
Thyne says that Alliance have 36 offices around the world and more than 250 investment analysts. "This isn’t just a big deal for AXA – it’s a big deal for New Zealand. Alliance Capital manage US$470 billion – if you think about it, New Zealand’s entire GDP is only NZ$105 billion!!! Last year alone Alliance spent US$50 million on research."
"It’s often the case that when a business venture like this happens, the New Zealand company ends up having to cut back staff and us resources. The exact opposite is happening for – we’re getting increased resource and capability. We already have IT and Back Office people from Alliance Capital’s London and U.S offices here to install their systems, and give us access to their worldwide research intranet. Of course, we’ll also be expected to contribute back our own research and knowledge of the New Zealand marketplace and New Zealand companies."
Alliance Capital has been so successful that they are now America’s largest listed fund Manager with one of the best reputations for consistent growth out of any of the players in the market.
"They don’t make a big song and dance about it, being very low-key kind of people, but Alliance Capital’s U.S Large Cap Growth product has consistently beaten the S&P 500 Share Index by at least 4%pa during the last 20 years. They’ve grown their FUM during the last ten years from US$70 billion to US$470 billion, including their acquisition of a value manager, Sanford Bernstein," Thyne says. "Their style is to simply get on with doing what they do best – researching, and managing third party assets to get the best returns- and allow their performance to speak for them."
When asked why Alliance Capital want to join with AXA Asia-Pacific to form a new funds management company in Australasia, his answer is very simple. "AXA Australia and New Zealand have a powerful infrastructure to market and distribute. Alliance Capital is a member of the AXA Group and we’ve now taken advantage of our close relationship to build a combined strength – our investment capabilities combined with AXA’s powerful distribution operation in the retail area."
Thyne is confident that the new asset management company will compete extremely well with other fund managers. "Alliance has been building wealth for its clients in the USA since 1968. Not without the occasional blip of course, but through the right asset mixes and some of the best investment teams in the business it has managed to remain stable and provide strong growth. I feel that as Alliance Capital, we can do this in New Zealand as well, through access to local knowledge and experience, great research, a proven process, the strongest markets and the most cutting-edge products."
The future from Thyne’s perspective is bright – he’s confident Alliance can do its part but he’s looking to AXA for two things; "corporate infrastructure, including marketing and legal compliance and, most importantly, sales power."
AXA advisers and the relationships being developed with financial planners are key to Alliance Capital’s vision for success. As Thyne explains, "AXA New Zealand has a strong team of advisers and relationships with financial advisers, who recognise the opportunity for Alliance Capital to do with the rest of the AXA products what they have already done with the AXA Global Equities Trust. The GET has already been very successful here in New Zealand. Since was launched in New Zealand on 27 July 1999, GET has returned 21.3% after fees and tax, compared to its MSCI benchmark of 15.4% after tax. That’s pretty impressive."
The AXA Global Equities Trust’s investments are managed by Alliance Capital’s Sandra Yeager, and a team which has more than 55 years’ experience between them, and a very choosy attitude towards the companies in which they invest. As an example, Alliance Capital does indepth research on 1,000 stocks worldwide. It rejects about 820 of them to selects only 50 with the best growth opportunities. Its process is incredibly rigorous – a company has to be extremely good to get into their investment books.
Thyne says that Alliance Capital is here to stay – and that it intends to make its presence strongly felt. "The ultimate judges of the significance of our presence here in New Zealand are our shareholders. The AXA APH share price has risen 10% since the deal was announced, to more than $4, in a flat market. We’re here, and we’re out to prove that we’ve got the people, the methodology, the process, the research and the performance to make us the first choice in the market."
The views expressed in this article are that of James Thyne, Manager (designate), New Zealand, for Alliance Capital. Contact:
jthyne@axa.co.nz, or tel: 04 474 4936.
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