The NZX has acquired the funds management arm of Craigs Investment Partners, shelling out $31.25 million for the QuayStreet business.
QuayStreet has about $1.6 billion under management including $250 million in its KiwiSaver scheme, bringing the Smartshares pool almost to $10 billion: it is also a step away from the Smartshares passive roots as the Craigs firm favoured active management.
“In addition, NZX has entered into a product support and distribution agreement with Craigs under which NZX and Craigs will work together to develop new products for the benefit of Craigs and QuayStreet customers,” a NZX statement says. “In time, NZX also expects to realise further synergies across the Smartshares business as a result of this transaction.”
Last year the NZX bought the $1.8 billion ASB superannuation master trust.
NZX chief, Mark Peterson, said in the release:“Under Smartshares ownership, there will be no immediate change for QuayStreet clients. The QuayStreet funds will be offered as a premium product set and will complement Smartshares’ existing systematic and passively managed product offering.
“In time, Smartshares, with input from Craigs and clients, will work to align and refine the products to ensure the funds continue to meet customer needs and represent good value for money. Smartshares will also explore listing the QuayStreet funds.”
Craigs head, Simon Tong, said the sale would free up the wealth management business to focus on its $26 billion of client-advised money.
“The deal is also strategically important for Craigs, positioning us for growth as we strive to deliver best in class, personalised wealth management through our 180 qualified investment advisers,” Tong said. “We are working closely with Smartshares to ensure the transition is seamless and that there is no impact to the service and advice our clients expect and deserve.”
The sale is due to close next February.