8 Apr 2011

Fisher defends purchase of Huljich KiwiSaver business

1:02 pm on 8 April 2011

Fund manager Fisher Funds has defended its purchase of the KiwiSaver business of Huljich Wealth Management.

In a newsletter, an investor queried why Fisher wanted to buy a damaged brand that would compromise the fund manager's performance.

Fisher Funds plans to buy Huljich's Kiwisaver scheme for an undisclosed amount, giving it more than 100,000 members and assets of $400 million.

But the purchase is slightly controversial as Huljich's principal, Peter Huljich, faces legal action over claims he misled prospective investors about the performance of its scheme.

That's made some Fisher Funds investors unhappy about the purchase, and worried it may affect their returns.

But Carmel Fisher says neither Peter Huljich nor any other Huljich executive or shareholder will be involved once the purchase is complete.

Ms Fisher says it'll cherry-pick the best of Huljich's current investments and receive cash for those it doesn't like or are illiquid. She says the purchase will not change its investment approach.

Fisher's scheme is already administered by other parties, and Ms Fisher says the extra business should not be a problem to incorporate into its operations.