NAB sells NZ managed funds business to Axa Asia Pacific

National Australia Bank today announced plans to sell its New Zealand managed funds subsidiary, BNZ Investment Management, to Axa Asia Pacific.

Axa's wholly owned subsidiary, Assure New Zealand, will buy the business for an undisclosed sum

The purchase is set to be completed by January 31.

BNZ Investment Management has $2.4 billion funds under management, with nine retail trusts, four retail superannuation funds, two wholesale unit trusts and five wholesale superannuation schemes.

BNZ general manager of personal financial services, Blair Vernon, said the 40,000 investors would remain customers of the BNZ, and would benefit from the scale Axa could provide.

"While BNZ Investment Management has a proud record of achievement, it has been restricted in its ability to develop new opportunities due to the relatively small size of the New Zealand market. We believe our customers will benefit from the investment management role moving to Axa APH," he said.

Axa APH is 51.6 per cent owned by the Axa Group. After the purchase it will be one of New Zealand's largest investment managers with nearly $6 billion funds under management.

- NZPA