Fisher Funds ownership has been repackaged in a new entity following the Kiwi Wealth takeover, according to the Toi Foundation report released last week.
Toi, which owns two-thirds of Fisher, notes equity in the now $20 billion plus fund manager have been shifted to a stand-alone holding company, FFML TopCo.
Until December last year Taranaki-based charity – previously known as the TSB Community Trust – held its share of Fisher via the Toi investment company that also owns TSB Bank. Prior to the legal reshuffle, the Toi investment arm also purchased the residual 10 per cent Fisher stake owned by the parent charity group to bring its total share to just over 66 per cent.
US private equity firm, TA Associates, continues to own the remaining third of Fisher as a shareholder in two FFML entities.
“The establishment of the new holding companies were as a result of Fisher Funds Management Limited acquiring an ownership of 100% in Kiwi Wealth Management Limited as at 1 December 2022,” the Toi Foundation report says.
Fisher contributed about $13 million to Toi coffers over the 12 months to the end of March compared to $56 million in the previous annual period that saw bumper profits at the fund manager. TSB Bank paid a dividend of $10 million to Toi for the 12 months to March 31, down from $12.5 million in the 2021/22 year.
However, the Toi Foundation booked total revenue of almost $28.7 million in the latest financial year compared to $30 million in the 12 months prior.
After costs and grants, Toi retained a surplus of $4 million for the 2022/23 period (almost $6.2 million last year).
Toi has the most concentrated portfolio of the 12 community trusts, which typically invest through a diversified range of third-party managers.
Last week, for example, Trust South reported no change to its panel of 12 underlying managers over the 12 months to March 31 following the appointment of new investment adviser in January.
Trust South hired Australian firm JANA as asset consultant late last year, replacing Aon, following an unusual appointment process. The Invercargill-based community trust also swapped PwC for KPMG as auditor for the latest reporting period.
In addition to a range of private equity allocations, Trust South uses a handful of local managers including Mint, Milford, Hunter and Fisher as well as Australia-based global equities specialists, Magellan and Hyperion.
During the 12 months to March 31, Trust South posted an almost $9.2 million deficit while the investment portfolio fell 0.9 per cent.
“This has seen our total net assets being $239 million as at balance date (compared to $248 million in 2022),” the community trust says in a statement.
Last year Trust South also recorded a deficit of more than $7.7 million after grants despite eking out investment gains of 0.4 per cent.
David Goble, Trust South investment committee chair, said in the release: “The Trust has a long-term perpetual investment fund and so our focus is on investment performance over the longer-term. The Trust has achieved an average investment return of 5.87% over the past 10 years and so while we are seeing some short-term challenges our focus remains on the long-term position.”
Trust South also published a ‘statement of service performance’ for the first time this year, chief executive, Jackie Flutey, said.