Wed, 24 Aug 2005
Following on from recent announcements that TOWER’s investment business plans enhancements to its workplace savings services, TOWER has confirmed its decision to close PAS, its custody and administration unit which provides wrap account services to investment intermediaries and end investors.
Instead TOWER will focus on its core investment businesses - asset management, and workplace and retail savings and investment products.
“Our aim is to focus on areas in the business that will deliver the best value to our investment clients and our shareholders, and to discontinue operating where there is no competitive edge or in areas that are no longer profitable,” says TOWER CEO Investment Businesses Tony Hildyard.
Mr Hildyard says that PAS currently provides custody and administration services in the form of wrap accounts to a small number of key clients, and TOWER will be working alongside these clients to assist them to transition to alternative investment solutions. “PAS has obtained excellent support from a core group of clients in a short space of time, however it has not achieved the scale we need. Instead we will be working with our clients on alternative solutions to meet their needs.”
TOWER reiterated its commitment to delivering value in investment services to New Zealand individuals, trusts and businesses via its award-winning asset management, retail investments and group superannuation offerings.
Mr Hildyard says “We look forward to continuing to be a core provider in each of these areas and delivering value to our investors well into the future. Our commitment to delivering superior investment solutions and service remains stronger than ever.”
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