The BNZ investment business will operate as a division of Harbour Asset Management once the FirstCape deal closes this week, according to disclosure documents for the group’s inaugural product rollover under the new structure.
Documents for the restated BNZ Term PIE reveal the BNZ Investment Services arm, which manages the bank’s KiwiSaver and other funds, is due to join the FirstCape group on May 1 when it “will be a wholly-owned subsidiary of Harbour Asset Management”.
FirstCape combines the BNZ investment unit and Harbour with the Jarden/JBWere NZ advisory networks in a business owned by the National Australia Bank (45 per cent), Jarden (20 per cent) and Australian private equity firm, Pacific Equity Partners (35 per cent).
BNZ reported about $1 billion under management in its in-house-managed cash and term PIE funds as at the end of March last year with the new scheme documents reflecting the formal separation of the investment business from the bank.
Following the transition to FirstCape the BNZ investment arm will use “the BNZ brand under licence from BNZ, whose ultimate parent company is NAB [National Australia Bank]”, the term PIE disclosure statement says.
“No member of the FirstCape group (including BNZISL) is a member of the NAB group of companies (NAB Group).”
As per the previous arrangements, the newly structured term PIE will invest solely in BNZ bank deposits with Apex serving as administrator and Guardian Trust as supervisor.
Peter Forster remains as the head of BNZ investments as the $6 billion plus KiwiSaver and retail funds business relocates to FirstCape.
The BNZ term fund is the only new PIE scheme issued this so far amid a dry patch for local-domiciled product launches.
During the year-to-date about 30 Australia-based investment products have registered in NZ under the trans-Tasman mutual recognition regime with two ASX-listed Betashares exchange-traded funds the most recent arrivals.