Agreement clears way for managers' international expansion
New Zealand investors will benefit from more competition for their investment dollar and more choice of investment options as a result of an international agreement signed today.
The Asia Region Funds Passport, signed by New Zealand, Australia, Japan and Korea, facilitates the offering of high-quality managed funds among the signatory economies. This means that fund managers from the other signatory countries can offer products to New Zealand investors, bringing more choice and more competition to the New Zealand managed fund market.
The agreement also benefits local fund managers, as it allows them to access and offer their products in the other signatory countries.
Fund managers wanting to offer new funds here – and New Zealand fund managers wanting to offer funds offshore – need to apply for a special licence. The conditions of the licence include that the fund manager must have significant scale, a track record of having offered the fund for at least five years and that the offered fund includes only highly diversified, vanilla investments.
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