18 January 2012
Gareth Morgan Investments' Press release
Gareth Morgan today announced the sale to Kiwibank of Gareth Morgan Investments (GMI), including the high profile Gareth Morgan KiwiSaver Scheme.
GMI will operate as a stand-alone entity within Kiwibank and Gareth Morgan will remain a key member of the investment strategy team as well as a major client of the business.
Dr Morgan said that the decision to sell was driven by the need for a solid and credible succession plan for GMI; a plan that would deliver certainty for clients over the long-term.
“I intend to remain very closely involved with the business, being both a director and a core member of the investment strategy team,” Dr Morgan said.
“However, to future-proof the care of clients’ portfolios I have to be responsible and make sure the firm is well-positioned for life after me.”
“This change will give me more time to focus on investment strategy and innovation, roles that really are of foremost importance to me and the business.”
Dr Morgan said he and other GMI directors liked the way Kiwibank worked.
“If we were selling it needed to be to a party that understood, accepted and was capable of reinforcing the core values of our business: trust and honesty; transparency; respect for clients’ interest; and the continual pursuit of excellence. It was also important to ensure that clients’ savings continued to be managed by a Kiwi business that has New Zealanders’ interests at heart. And you can’t get any more Kiwi than Kiwibank.”
“While the ownership of this business is changing, my wealth, and that of a number of other founders of GMI, will be staying right where it is because a key element of the deal is that the business’s values and approach to managing peoples’ savings will remain the same.”
Dr Morgan said he started GMI because he couldn’t find anyone to look after his savings with the degree of reporting and accountability that he needed.
“There was, to be honest, a major gap in the market on these factors which led to erosion of trust in the industry and consequent attention from regulators.”
Dr Morgan said that he was very comfortable with the fit between GMI and Kiwibank.
“We are both relatively new to our respective markets so we have had to think outside the square to break into well-established markets dominated by mainly foreign players.”
“I’m convinced that the combined brains and passion of GMI and Kiwibank will continue to set new standards in the funds management and banking sectors. Being relatively new entrants we are acutely aware of the importance of our customers and the emphasis on communicating with them directly and honestly; we have a market-leading reputation for customer service and reporting. GMI will continue to set high standards of excellence in the way we run our funds management business and I will have an active role in achieving that.”