AUCKLAND, NEW ZEALAND: Smartshares Limited, a wholly owned subsidiary of NZX Limited has signed an settlement to purchase the administration rights of QuayStreet Asset Management Limited from Craigs Investment Partners for total upfront consideration of $31.25 million.
In addition, NZX has entered right into a product support and distribution settlement with Craigs under which NZX and Craigs will work collectively to develop new merchandise for the profit of Craigs and QuayStreet customers. In time, NZX additionally expects to realise additional synergies throughout the Smartshares enterprise as a results of this transaction.
NZX Chief Executive Mark Peterson says the acquisition of QuayStreet provides an attractive alternative for NZX to purchase a high-growth fund – aligned with a highly effective private wealth network, driving additional scale for Smartshares.
“Smartshares is a confirmed funds administration enterprise which offers funds to investors that track the efficiency of an index or use a scientific approach to investing,” Mr Peterson says.
“Under Smartshares ownership, there’ll be no immediate change for QuayStreet clients. The QuayStreet funds will be offered as a premium product set and can complement Smartshares’ existing systematic and passively managed product offering. In time, Smartshares, with enter from Craigs and clients, will work to align and refine the merchandise to make sure the funds proceed to meet buyer wants and represent good worth for money. Smartshares will additionally discover itemizing the QuayStreet funds.”
Craigs Investment Partners Chief Executive, Simon Tong, says each companies are delighted to signal the mutually beneficial agreement.
“Ensuring our clients get the highest high quality outcomes is our primary priority. With 19 offices throughout New Zealand, and 60,000 clients with $26 billion in funds under administration with us, we represent Kiwis from each stroll of life. Our decision to promote QuayStreet is especially thrilling for these clients whose wants are suited to funds. In Smartshares, they get an award-winning, reputable, focused funds supervisor and extra choice,” Mr Tong says.
“The deal is additionally strategically important for Craigs, positioning us for growth as we strive to ship best in class, personalised wealth administration through our 180 certified funding advisers. We are working closely with Smartshares Limited to make sure the transition is seamless and that there’s no impact to the service and recommendation our clients expect and deserve.”
Auckland-based QuayStreet is an award-winning specialist fund manager with $1.6 billion under administration providing a vary of diversified and sector particular funds covering most main asset classes.
Both Smartshares and QuayStreet were award winners on the 2022 Research IP Fund Manager of the Year Awards on sixteen November. Smartshares won the general Fund Manager of the Year title in addition to three different awards. QuayStreet won Boutique Fund Manager of the Year.
The transaction will see Craigs transition the administration of the QuayStreet funds to Smartshares Limited. The transition is anticipated to happen in late February 2023 with support services to be transitioned over the subsequent two-year period. NZX intends to retain the bulk of QuayStreet staff as a half of the transaction to proceed to support QuayStreet and its clients.