AXA flogs off its trustee company
NZPT has about $3 billion in assets under supervision, while Public Trust’s Corporate Trustee Services has a trustee or supervisory responsibility in relation to approximately $6.6 billion of assets. Public Trust already leads the personal trusts market as the largest single provider of wills and estate management, with responsibility for another $2 billion of assets in that area.
Public Trustee David Hutton says NZPT’s business was a good fit with Public Trust’s present corporate trustee work: "They have strong clients in Auckland, whereas our business has been more weighted to Wellington.
"Corporate Trustee Services has doubled in size in the last 12 months. This acquisition will provide a sound platform for further expansion." Hutton says that back office systems will be linked but NZPT will continue to operate as a distinct business.
AXA New Zealand chief executive Ross McEwan says that while increasing interest in retail superannuation will drive up demand for corporate trustee services, AXA has decided to move out of this market rather than commit to further investment.
"We are confident that NZPT has very positive prospects and that Public Trust’s expertise will enable it to continue to develop strongly. The company will remain trustee for AXA New Zealand Group Investment Funds and superannuation schemes, so we will continue to work closely in future."
NZPT’s main clients are AXA New Zealand Group Investment Funds and superannuation schemes, Kiwi Income Property Trust and Dominion Property Trust. Public Trust Corporate Trustee Services’ clients include BNZ Investment Management, Colonial and Colonial First State, National Bank of New Zealand, Sovereign and Tower Corporation.
The Minister in Charge of the Public Trust, Jim Anderton, has welcomed the deal: "The Government strongly supports public enterprise," he says.
"Today's announcement will ensure that the public sector maintains a strong presence in the trustee services field. It is a highly appropriate sector for publicly-owned organisations to participate in," he says.
