FundSource finally sold, but competition for research heating up
Melbourne-based Zenith Investment Partners says it has finally completed its purchase of managed funds research business FundSource and is now looking to develop its strategy in New Zealand.
It's understood Zenith didn't pay anywhere near what the NZX expected to sell FundSource for. Rather it paid for the brand and goodwill.
However, Zenith is planning to continue the most profitable part of the business, the annual Fund Manager of the Year awards. The large majority of the researcher's revenue comes from selling licenses to the winners so they can promote their gongs. (Morningstar has a similar strategy).
Under NZX-ownership the quantitative research function was outsourced to Australian company Research IP. Its managing director, Darren Howlin, says the company completed his contract with FundSource in September last year.
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