JP Morgan Asset Management (JPMAM) is set to boost the global research power of Craigs Investment Partners following an agreement signed last week.
But the deal may also see the US-headquartered investment giant develop products for the NZ advisory group, according to Craigs head of private wealth and markets, Jeremy Williamson.
“There’s a potential to add [JPMAM] products on our platform but this is primarily about providing access to their extensive global research capabilities,” Williamson said.
He said as well as tapping into “on-the-ground” offshore resources across multiple asset classes, JPMAM would provide new portfolio analytical tools to the Craigs advisory network and the opportunity for global experts to present directly to clients.
Under the arrangement, JPMAM representatives will also join the Craigs investment committee this quarter.
Williamson said the ‘memorandum of understanding’ essentially extends Craig’s long-standing investment banking and broking relationship with the US firm to its retail advisory arm.
In a statement, Mark Carlile, JPMAM Australia and NZ head of wholesale, said the US$3.4 trillion asset manager was “excited for future collaboration and growth opportunities providing diversified, quality solutions to New Zealand investors” following the agreement.
Craigs would continue to offer a diverse range of global investment strategies even if JPMAM-run portfolios or funds do end up on the approved list, Williamson said.
Like other NZ broker-originated wealth management networks, Craigs has historically favoured direct securities – often packaged into discretionary investment management services (DIMS) portfolios – over managed funds.
“Our DNA is in direct stocks and bonds, and that’s not likely to change,” he said.
However, Williamson said Craigs has included more funds on the investment menu in recent years.
“We’ve always had individual funds on the platform,” he said. “And we’re looking to increase the selection where appropriate.”
For instance, the Craigs KiwiSaver and superannuation schemes offer clients the choice of dozens of funds – mainly listed investment trusts or exchange-traded vehicles but with some unlisted options managed by the likes of Devon, Milford or QuayStreet (the former in-house shop sold to the NZX late in 2022 for more than $31 million).
The wider discretionary Craigs list likely has more fund choices with a new credit product, managed by the Australia-based Coolabah, understood to be available soon.
Until recently, Craigs was the largest wealth management business in NZ, reporting about $28 billion under custody and almost 200 advisers. Following the buyout of Hobson Wealth in December last year, Forsyth Barr now has 220 advisers and $30 billion of funds under management or advice.
JPMAM has some institutional clients in NZ including Nikko Asset Management, which uses the firm’s global hedge fund-of-funds product.