TSB Trust to take over Fisher Funds

The TSB Community Trust's commercial arm is to buy the 51% shareholding in Fisher Funds it does not currently own.

Thursday, August 3rd 2017, 9:53AM

TSB has been a shareholder since 2013 and currently has 49% of the fund manager.

It had an option to acquire the balance of the company in 2017 and has chosen to exercise that option.

It has also reached agreement to initially sell a 24.99% shareholding in Fisher Funds to TA Associates, a global growth private equity firm with funds management experience. The intention is that the TA Associates shareholding will subsequently increase to 34% following receipt of required regulatory approvals, leaving TSB group with a controlling 66% stake.

It means Carmel and Hugh Fisher sell their stake almost 20 years after founding the company.

With over 270,000 clients and $7 billion under management, Fisher Funds is New Zealand’s fifth-largest KiwiSaver provider.

TSB group chair Hayden Wano said: “Fisher Funds is an iconic New Zealand business that has built a reputation for excellence in investment management and client service. Our intention is to continue to build on the great business that exists today, adhering to its values and mission of making investing understandable, enjoyable and profitable for New Zealanders. We also are pleased to welcome TA Associates as an investor and partner alongside TSB Community Trust.”

Fisher Funds will continue to be led by chief executive Bruce McLachlan and there will be no change to the personnel or operations of the company as a result of this transaction.

Carmel Fisher, who retired from her executive role in May 2017, will remain as a director on the Fisher Funds board.

She said: “The TSB Community Trust have been a very supportive shareholder over the past four years, and I know they share our passion for excellent client service. Hugh and I are proud to have been able to help so many New Zealanders with their wealth and retirement savings over the past two decades, and we’re pleased to hand over the future control of our business to a strong and stable entity committed to delivering excellent investment returns and great client service into the future.”

Settlement will be completed this month.

Tags: Fisher Funds