The Craigs Investment office in Christchurch. Photo: RNZ / Alexander Robertson
Global financial services firm JP Morgan Asset Management (JPMAM) and Craigs Investment Partners (CIP) have formed a strategic partnership in response to increasing demand from New Zealand investors.
Craigs chief executive Simon Tong said the multi-year deal would give Craigs direct access to JP Morgan's global network.
"Craigs has a long history of being local but acting global and this is another example," Tong said.
JP Morgan's Australia and New Zealand chief executive Andrew Creber said the collaboration also benefited the global firm.
"We've chosen to partner with CIP given their position as the leading private wealth investment firm in the New Zealand market and the alignment of both our organisations' goals and values," Creber said.
From left, Simon Tong and Andrew Creber Photo: Supplied / Craigs Investment Partners, JP Morgan Asset Management
Craigs head of private wealth Jeremy Williamson said JP Morgan operated at the highest level of global investment.
"The objective of the partnership is to further develop CIP's investment capabilities and insights by directly accessing JPMAM's global capabilities and expertise, which will benefit our clients, our advisers and our investment committee," Williamson said.
He said the recent shake-up in the New Zealand investment management sector, with the mergers of two large New Zealand firms, was coincidental.
Wellington-based Jarden Securities and the National Australia Bank joined private equity firm Pacific Equity partners to create a firm with $44 billion of funds under management, late last year, a few days after brokerage firm Forsyth Barr bought out its competitor Hobson Wealth, adding about 15 percent to the size of the firm.
While details of the commercial arrangement between Craigs and JP Morgan were confidential, Williamson said it benefited both parties.
"(JP Morgan) don't have a footprint in the private wealth market in New Zealand. So it gives them some exposure to private wealth which is a growing market with much more of a focus by Kiwis on saving and creating wealth and their financial future," he said.
Craigs had other existing partnerships with international financial firms, but Williamson said the agreement with JP Morgan was the largest and most formal arrangement it had in place.