Title crowns Tower recovery

By ELLEN READ


Tower Managed Funds has fought back from its "character-building struggles" to claim the title of fund manager of the year.

Strong performances across its investments saw Tower crowned by researchers FundSource.

"They won because of their success over a broad range of investment products. A good, sustained performance of NZ equity, diversified, international equity and fixed interest funds," FundSource business manager Tim Anderson said.

Paul Bevin, chief executive of Tower NZ Investment Businesses, said he was delighted by the win.

A shock profit warning two years ago saw Tower's share price plummet. Since then, the company has rebuilt itself via a capital raising, slashing expenses, culling several directors and senior managers, selling a business, shutting others and overhauling the structure of its divisions.

With those worries now behind them, Bevin said quality managers and products were the key to Tower's success.

"And we're trying to offer those in as many areas as we can in the marketplace," he said.

Looking forward, Bevin thinks retail managed funds will come under increasing pressure.

"Competition from property and residential investment and direct fixed-interest investment is putting a lot of pressure on the managed funds industry."

Fund Source