Zenith Investment Partners is to end the long-running NZ retail fund quarterly market share report inherited as part of its purchase of local research brand, FundSource, in 2019.
In a note to clients last week, the Melbourne-headquartered Zenith confirmed the NZ market share report would wind up after the June quarter issue.
“The market appetite for this service has materially reduced in recent times and become unviable for us to maintain,” the note says. “… we hope that this is sufficient notice for you to source similar information from an alternative provider.”
Zenith says it will “waive our fee” for NZ clients over the final June quarter reporting period.
Both Morningstar and Plan for Life publish some NZ fund market share data, although not to the level of detail of the Zenith/FundSource report.
Zenith bought FundSource off previous owner, the NZX, early in 2019 for about $340,000 ahead of plans to expand into the NZ market. But after a slow start the Australian provider’s NZ ambitions were further stymied by the COVID-19 border closure in March 2020 that prevented any on-the-ground research activity on this side of the Tasman.
Despite the latest setback, Zenith would continue to research NZ managers, according to a spokesperson for the group.
“We remain committed to the NZ market and look forward to visiting managers now the borders are about to open,” the spokesperson said.
Australian retail fund research providers have historically struggled to turn a profit in NZ with brief forays over the last decade from Lonsec and van Eyk, for example. However, Morningstar and newish Australian entrant, Research IP, are both plying the NZ trade along with local player, MyFiduciary.
FundSource has a long history dating back to the early 1990s when it was launched by parties associated with NZ Funds.
Headed by David Wright, Zenith, too, has seen a recent ownership shake-up following its sale to UK investment data giant, FE fundinfo, last October. In 2020 Zenith bought Australian specialist superannuation researcher, Chant West, after a difficult sales process.
FE opened a Sydney office in 2014 before purchasing financial trade publications Money Management and Super Review from Reed Business Information three years later.