Tower hungry for Aussie trustee business

By Phil Boeyen, ShareChat Business News Editor

Wednesday 26th July 2000

Tower says it plans to compete vigorously for trustee business across the Tasman following its purchase of an Aussie trustee company.

Tower has bought IOOF Australia Trustees Limited, which it says has a blue-chip Australia-wide client list and assets under management of over $1.5 billion.

The new purchase increases Tower Trust's assets under management to NZ$7.5 billion, and the company says the initial profit impact will be $1 million to $2 million a year.

Tower boss James Boonzaier says the new purchase is a strategic acquisition. He says Tower is already New Zealand's largest corporate Trustee company with $27 billion under supervision, and the new purchase give the group a good Australian base for the further expansion of this profitable part of its business.

"The purchase will enable Tower to enhance our extensive range of private trustee services, and further complement our substantial corporate trustee business in New Zealand. The wealth management sector is expanding at over 15% a year in Australia, largely on the back of the compulsory superannuation regime."

He says Tower will compete vigorously for corporate trust and custodial business, as well as back office and administrative service business for fund managers and master trusts in Australia.

"Tower Trust enters the Australian corporate market having already achieved "critical mass", so we are confident that we will be competitive now that we have established an Australian base through acquisition."

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