Aussie managers find ready market in NZ
Australian fund managers are on the map in New Zealand but have been cautioned from rushing into the sector unprepared according to a New Zealand-based industry consultant.
Heathcote Investment Partners director Clayton Coplestone said the New Zealand market had less than 10 equity managers offering funds to investors and Australian based equities managers could move into the sector quite easily under Trans-Tasman mutual recognition scheme.
Under this scheme managed investment schemes which have been approved by a regulator in their home market can be offered into a host market without the need to comply with many regulatory requirements of the host market.
Coplestone said the managed funds market in New Zealand was undergoing rapid growth and there was a shortage of good products with investors keen to move beyond property and the local stock market. However he urged restraint from Australian managers until they had developed a reputation and level of trust with local investors.
"Managers will need to be seen as a trusted provider in one area before they can expand but also be aware the Financial Markets Authority (New Zealand's corporate regulator) is armed to the teeth. Punters have low levels of trust in many cases and politicians are listening to their constituents about these concerns," he said.
"We have our own batch of local celebrity investors who get traction but consistently fail over the longer term. New entrants should bring a simple story and establish their brand and open a crack in the door."
AUTHOR
Jason Spits
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