NZX Acquires Craigs Funds Division

NZX acquired the money management division of Craigs Investment Partners and invested $31.25 million in the QuayStreet business.

QuayStreet manages about $1.6 billion, including $250 million in the KiwiSaver scheme, while the Smartshares pool reaches almost $10 billion. This is a step away from Smartshares’ passive roots, as Craigs’ firm favored active management.

“In addition, NZX has entered into a product support and distribution agreement with Craigs. Under this agreement, NZX and Craigs will work together to develop new products for the benefit of Craigs and QuayStreet customers.” A statement from NZX said: Over time, NZX also expects to realize further synergies across its Smartshares business as a result of this transaction. ”

Last year, NZX purchased the ASB Superannuation Master Trust for $1.8 billion.

NZX Chief Mark Peterson said in the release: The QuayStreet Fund will be offered as a premium product set, complementing Smartshares’ existing structured, passively managed product offering.

“SmartShares will work with input from Craigs and our clients to tweak and refine our products so that the funds continue to meet their needs and provide value for money. We will also consider going public.”

Simon Tong, head of Craig’s, said the sale would free up its wealth management business to focus on its $26 billion client advisory fund.

“This transaction is also of strategic importance to Craigs and positions us for growth as we strive to provide best-in-class personalized wealth management through our 180 qualified investment advisors. ‘ said Tong. “We are working closely with his Smartshares to ensure the transition is seamless and does not impact the services and advice our clients have come to expect and deserve.”

Sales are scheduled for February next year.