Summit opens doors for big fund

By Geoff Senescall

At least one big overseas fund is actively looking at investment opportunities here after the CEO summit.

Douglas Fergusson, president and group chief of Prudential Asia Investments, said he had used the occasion of being in New Zealand to brief several people about investing money here.

"That is one of the advantages of this forum, it helps develop a few close relationships." People here now knew what Prudential Asia was looking for.

Mr Fergusson said that, typically, Prudential Asia would look at putting between $US10 million ($18 million) and $US30 million into an asset if it looked good. It was unlikely Prudential Asia would consider doing anything below $US10 million.

"You have to have enough money at risk to focus the mind."

Although Prudential Asia had investments in Australia, it did not have any in New Zealand.

"That is not a matter of policy or the lack of opportunities. Rather it is the lack of familiarity.

"Would we invest in New Zealand? Absolutely."

That was where this summit had been so good, he said. It provided an opportunity to meet other CEOs in the Apec region. Given the event was being held in New Zealand, it also gave a good opportunity to meet the many local businesspeople who have participated at the summit.

Although many of the CEOs interacted on a regular basis in the North Asian region, Mr Fergusson guessed that for a relatively high number of them it would be their first visit here.

"So in terms of relevance for New Zealand it [the summit] is important. I think the impression of New Zealand has come out as favourable.

"I think we all realise the Apec region is not a homogeneous unit ... but from an investment point of view ... New Zealand scores well.

"The issue for New Zealand is that it is a long way away. But that is becoming less relevant with technology. Another issue is its size."

From Prudential Asia's point of view it would generally look for investment in strong industries and ones where New Zealand had a demonstrable advantage.

"Clearly for a country like New Zealand, what we will be looking for is export potential or partnership overseas."

Mr Fergusson named agriculture and food as possible examples in which New Zealand might have the kind of expertise sought.

Prudential Asia was not averse to providing private equity to a venture needing capital or wanting to expand. Equally, the sharemarket was another investment avenue.