ASB funds launch
Thursday 23rd of October 1997
ASB Bank has joined the investment advisory business in a big way with the launch of six unit trusts and an 11 person nationwide advisory service.
The bank, which formerly had just its two Easyplan superannuation funds, now is a mainstream player in the managed fund business.
It signalled its intentions to move into this area last year, however it has taken longer than expected to obtain binding rulings from the Inland Revenue Department. Also there has been a change in key personnel during the set-up process.
Former Prudential director Kim White was appointed to head up the bank's managed fund business, however his tenure in the position was reasonably short.
ASB's former chief manager of planning Roger Perry now runs the operation.
He says the managed funds and investment advice "was the last obvious area that the bank hadn't moved into" in its transition from a regional community bank to a full service nationwide operation.
The bank is outsourcing most of its funds management operations and will embrace the passive management style.
AMP Investments has won the mandate to manage the fixed interest, New Zealand property, New Zealand share and world share trusts, while United States group Vanguard will manage the emerging markets share trust.
ASB Bank will manage the money market fund and will be responsible for the currency hedge on the World Shares trust.
Currently Tower Portfolio Management and Citibank have the mandates for the Easyplan super funds.
Perry says the ASB style of investment advisory is based on what its parent company, Commonwealth Bank does in Australia. It is a tiered structure where the investment advisors work with the bank's 55 personal bankers.
The ASB advisers will only sell ASB product and the independent advisory community won't distribute the bank's funds.
The 11 advisors are all provisional members of the Association of Investment Advisors and Financial Planners (IAFP).
