27 Feb 2013

Tower fund take-over seen as good move

10:11 am on 27 February 2013

Morningstar, an independent financial research firm, says the decision by Fisher Funds to buy rival Tower Investments is a good move.

The deal will quadruple the total funds under management by Fisher to $5.5 billion, making it the fourth largest fund manager in the country and double its share of the KiwiSaver market to 10%.

Morningstar fund research co-head Chris Douglas said that is important.

"You want to have scale on KiwiSaver ... and doing it by acquisition is certainly one way to do it," he said.

Tower Investments will run as a stand-alone business with employees transferring with the business.

The sale will go through in early April.