KEY POINTS:
Aside from his wife and two young children, former Hanover Group chief executive Sam Stubbs says he has two other great passions and indeed responsibilities in life, leaving little time for much else.
One of those is a piece of New Zealand maritime history, the 105-year-old yacht Rawhiti; the other is a grand old financial institution called Tower Investments.
Stubbs took over as Tower Investments' chief executive early this year, replacing the long serving Tony Hildyard who left around the same time as a another long time Tower figure Wayne Stechman.
Under Hildyard and Stechman, the investment arm of the 143-year-old company formerly known as Government Life had enjoyed an enviable record, winning the fund manager of the year title frequently in recent times.
The Rawhiti, which Stubbs owns in partnership with his brother-in-law, is a 16m kauri racing yacht built by famous Auckland boat builders the Logan Brothers. Stubbs describes it as "the E-type Jag of boats".
It has also had more than its share of wins. Leaving Auckland within days of completion, it remained undefeated in its class in 30 years of racing on and around Sydney Harbour.
But Hildyard and Stechman's departure from Tower, with some fairly hefty clients, fanned speculation that the firm had sprung some dangerous leaks, something Tower New Zealand boss Rob Flannagan was clearly anxious to downplay.
When Stubbs took possession of the Rawhiti, its glory days appeared to be well behind it
and it hasn't been plain sailing for Hanover either recently.
Hanover Finance, and the other companies happily still afloat, has been the subject of numerous rumours during a period when a large number of its rivals have gone under.
If this was an annoying distraction for Stubbs, who joined the company as it announced plans to become a significant player in the funds management industry, he gave little sign of it, fielding calls from the Business Herald following up on a number of anonymous tips with unflappable amiability.
And if there is anything particularly intriguing about the smooth talking former Goldman Sachs high flier's decision to jump ship after just a year with Hanover, he's not letting on.
"It was all in the press release. I was hired to do a job where a big component of it was to build an asset management business, that was my first love, we all know what happened to the markets there, so that wasn't an option.
"I put up my hand and said I've done my job here in terms of the other side of the business, it's a stable ship, I'd like to move on and get involved in asset management, and we're all very happy about that."
Fair enough, but passionate about funds management? Really?
Apparently yes. It's the responsibility he enjoys.
"This is a good thing to be doing, looking after people's money."
About $6 billion in fact, all being managed on behalf of tens of thousands of investors and clients through a myriad of Tower products including life insurance and KiwiSaver schemes.
"You're dealing with people's life savings here. I have the responsibility for ensuring that people's retirements are more comfortable."
Mind you, unlike the Rawhiti, whose rebuild of 3 years, and counting, has required replacement of several major components and 8000 brass rivets, it's not as if Stubbs believes he was hired to rebuild Tower or even get it back on an even keel.
Hildyard and Stechman's departures were "all very amicable" and aside from those two, Tower Investments' team remains very stable.
In fact, he says, it's just setting out on a new voyage over what the funds management industry hopes will eventually be an ocean of cash.
"We're in a rising tide environment. I think it's going to be very exciting. The industry has been stale, sitting on a shrinking pool of assets, but is just turning round now."
Of course he's talking about KiwiSaver and the new tax rules which it is hoped will help divert New Zealanders' savings from housing into the wider financial markets.
"KiwiSaver is proving to be more successful than the industry and the Government expected. The whole industry is going to go through a very dynamic period.
"Have a look at what's happened in Australia. How wonderful has it been for the Australian economy to have people putting their money into the markets and letting the markets decide what's the most efficient use of that?"
This is all very altruistic sounding, especially considering that during his decade with Goldman Sachs, Stubbs was for a time head of Asian hedge fund services, and hedge funds have something of a reputation for being the swashbuckling buccaneers of the international capital markets.
That said, Stubbs has in the past year or so been a fairly vocal supporter of changes to local financial regulations which seek to protect small time investors, or at the very least, bolster the respectability of the finance company sector.
While at Hanover, he repeatedly spoke of the need for mandatory credit ratings, his company being one of the very few with such a stamp from one of the major international agencies. He was also supportive of new regulations for the sector.
In a similar vein, he also welcomes changes to the environment for managed funds that have taken place in recent years.
"Since I've been away a lot of practices which were accepted in the market in New Zealand 15 years ago are now illegal.
"Investor confidence demands that we operate best of breed market procedures. We have tough laws and tough enforcers. If you don't have them the market doesn't deserve investor confidence.
"You just cannot expect people to give you money and trust you unless they know that the market they are operating in is fair and that the organisation is paying particular attention to that. I personally welcome debate on this issue, it's ultimately a good thing."
And while the industry still has its critics, Stubbs believes its imminent growth will serve to further strengthen regulation.
"Look at Asic [Australian Securities and Investment Commission]. It's an extremely effective regulator and enforcer and one of the reasons is that the market there has been growing and there's been more money to focus on that sort of thing.
"There's been a political will to have very strong enforcement. I'm very encouraged that these sort of things are becoming ... I would expect to see the Securities Commission become bigger and the stock exchange playing an increasing role. I think the market will detect this and it will be good for investors."
As for the Rawhiti: "Once it's restored we'll race it and we'll take the family out in it.
"I'm sure we'll own it for the rest of our lives and it will end up in the maritime museum. Personally, I think it's an honour because it's a part of New Zealand's heritage. It's turned into a true passion."
SAM STUBBS
Chief executive of Tower Investments.
Age: 43.
Married to career diplomat Gabrielle.
Two children.
Education
Kelston Boys High
Auckland University - Masters in politics and philosophy.
Career
1997-2006: Goldman Sachs - London and Hong Kong.
2007: CEO Hanover Group.
2008: Tower Investments.
Passions
His wife, children, funds management, and classic racing yachts.
