Wealth firm plaited from long-established brokers
In 1989, JBWere purchased 50% of Jordan Sandman Smythe and then acquired the remaining 50% in 1994, establishing JBWere New Zealand.
All Black great Ron Jarden, who played 37 times for the All Blacks including 16 tests, founded his stockbroking business RA Jarden & Co in 1961.
In 1988, the firm merged with Deak Morgan to create Jarden Morgan, expanding into fixed income sales and trading, corporate finance and research activities.
In 1990, Credit Suisse First Boston acquired a stake in Jarden Morgan and the firm was renamed First New Zealand Capital (FNZC). Twelve years later, management acquired the business from CSFB (then known as Credit Suisse) to create an independent firm while maintaining a strategic alliance.
In 2003, JBWere combined with the Australasian operations of global investment bank Goldman Sachs to establish Goldman Sachs JBWere.
In 2009, National Australia Bank Ltd (NAB) acquired an 80% shareholding in the private wealth division of GS JBWere which grew to to be 100% in 2016, resulting in JBWere's broking business being wholly owned by NAB.
FNZC rebranded as Jarden in 2019 and the following year expanded its offering into Australia. At the same time, the strategic alliance between Jarden and Credit Suisse ended.
In 2023, JBWere's shareholder, NAB, and Jarden combined their New Zealand wealth management and asset management businesses into a new entity, FirstCape, in which NAB, Jarden and Pacific Equity Partners were major shareholders.
This year, Jarden Wealth and JBWere consolidated their businesses under one brand, JBWere NZ. FirstCape is the parent company of JBWere NZ, and it is no longer a member of the NAB group. — Allied Media
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"Digital assets are now a mainstream component of diversified investment portfolios internationally, yet New Zealand advisers are lagging in both adoption and education. "If you'd invested just $10 per day in Bitcoin over the past 10 years, you'd have spent $36,500 and accumulated roughly 14.5 BTC. Today, that would be worth around $2.8 million, a 76x return. That kind of performance deserves consideration, even as a small part of a retirement portfolio." Titman contrasted the Bitcoin returns to the typical balanced KiwiSaver fund, which he said had returned around 6% to 7% per annum over the past decade. This would have turned a NZD $36,500 investment into approximately NZD $65,000 to NZD $70,000 today. Titman noted that digital asset adoption among high-net-worth families has been more rapid, suggesting this group recognises the potential benefits of digital assets as part of long-term investment strategies. "It's a clear example of the opportunity cost facing retirement savers when portfolios remain too narrow. "Diversification into digital assets, even at a small allocation, could dramatically shift long-term outcomes for many Kiwis," he says. Official figures from the Financial Markets Authority show that KiwiSaver balances rose by 19.3% in the last year, taking the average member balance to NZD $33,514. Despite this, only two of the existing KiwiSaver schemes currently offer any exposure to digital assets. Titman pointed to international trends, such as reported moves in the United States to broaden permitted 401(k) retirement plan investments to include digital assets, as evidence that the retirement market is evolving. While these changes have provoked mixed reactions within traditional finance circles, Titman feels they indicate a global reassessment of retirement fund structures and the returns expected by investors. 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"It's a sector that is expanding, and investor engagement with it is already occurring outside of traditional channels," says Titman. Swyftx's research also examined the effect of early and consistent exposure to digital assets for long-term savers. Titman believed that such allocations can have significant cumulative effects over decades. "If a young investor allocated just 5% of their KiwiSaver contributions into Bitcoin when they enter the workforce, the compounding impact over decades, particularly with historically high long-term returns, could significantly accelerate the path to retirement for some individuals. "While not all investors would become millionaires, the data suggests that financial outcomes could improve substantially when higher-growth assets are appropriately integrated," he says. 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Otago Daily Times
5 days ago
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Wealth firm plaited from long-established brokers
It was Jonathan Binns (JB) Were who founded stockbroking business Were Brothers & Co (later JBWere & Co) in 1840, after arriving in Melbourne from England a year earlier. In 1989, JBWere purchased 50% of Jordan Sandman Smythe and then acquired the remaining 50% in 1994, establishing JBWere New Zealand. All Black great Ron Jarden, who played 37 times for the All Blacks including 16 tests, founded his stockbroking business RA Jarden & Co in 1961. In 1988, the firm merged with Deak Morgan to create Jarden Morgan, expanding into fixed income sales and trading, corporate finance and research activities. In 1990, Credit Suisse First Boston acquired a stake in Jarden Morgan and the firm was renamed First New Zealand Capital (FNZC). Twelve years later, management acquired the business from CSFB (then known as Credit Suisse) to create an independent firm while maintaining a strategic alliance. In 2003, JBWere combined with the Australasian operations of global investment bank Goldman Sachs to establish Goldman Sachs JBWere. In 2009, National Australia Bank Ltd (NAB) acquired an 80% shareholding in the private wealth division of GS JBWere which grew to to be 100% in 2016, resulting in JBWere's broking business being wholly owned by NAB. FNZC rebranded as Jarden in 2019 and the following year expanded its offering into Australia. At the same time, the strategic alliance between Jarden and Credit Suisse ended. In 2023, JBWere's shareholder, NAB, and Jarden combined their New Zealand wealth management and asset management businesses into a new entity, FirstCape, in which NAB, Jarden and Pacific Equity Partners were major shareholders. This year, Jarden Wealth and JBWere consolidated their businesses under one brand, JBWere NZ. FirstCape is the parent company of JBWere NZ, and it is no longer a member of the NAB group. — Allied Media
NZ Herald
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KiwiSaver growth strong despite lagging NZ market
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'This performance, while positive, trailed stronger returns seen in international shares (+9.3% hedged to NZD) and Australian shares (+7.4%),' Morningstar said. The Reserve Bank's rate cuts and improving domestic sentiment were supportive factors for local equities, it said. Both international and New Zealand fixed interest markets delivered positive returns in Q2, with gains of 1.2% and 1.3% respectively. The general trend of lower interest rates has supported bond prices, although yield curves steepened marginally. Morningstar said the residential property market, while still recovering, was showing increased activity among first-home buyers. 'The declining interest rate environment and recent government policy changes (such as restoring mortgage interest deductibility for rentals) are expected to bolster investor demand in the medium term,' it said. 'Investors may find opportunities as the market gradually gains momentum.' Morningstar noted the weaker New Zealand dollar. 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The strategic reserve has been developed in response to tight market conditions during winter 2024, where declining gas availability, low hydro storage and subdued wind output spurred concerns about security of supply. Michael Hill's share holding Sir Michael Hill died holding 148.3 million shares (38.4%) in the company that bears his name, according to a notice filed with the NZX soon after his passing. Separately, acting chief executive Andrew Lowe said in an update that despite retail trading conditions remaining challenging in all markets, the jewellery business had delivered full-year earnings and gross margin broadly in line with the prior year's. A 'relentless' focus on store productivity brought a second-half lift in group same-store sales of 2.4%, Lowe said. The company's trading update for the 52 weeks to June 29 showed the jewellery retail chain's earnings before interest and tax would be around $14m to $16m. For the 2024 period it was $15.9m. NZX downgraded Forsyth Barr has downgraded its rating of stock exchange operator NZX to 'underperform' from 'neutral'. 'We believe its sustainable growth level is lower than market expectations given: (1) increased competition in the low-fee passive funds industry has heightened fee pressure on NZX and softened net inflows to its high-value KiwiSaver product, and (2) our view that the headwinds to earnings growth in its capital markets segment over the last decade will persist rather than ease,' the broker said. Over the last five years, NZX's earnings before interest, tax, depreciation and amortisation had shifted from about 90% markets to around 40% funds management. With funds management generating lower returns, more cyclical earnings and higher competitive pressures, it represented a lower-multiple earnings stream, Forsyth Barr said. 'Despite this shift, NZX is trading at a higher 12-month forward price earnings multiple today of 23 times than its pre-Covid average of 19 times. 'A sizeable valuation needs to be assigned to its wealth tech platform to explain the difference, which we believe is unjustified in light of historical merger and acquisition multiples,' the broker said. NZL's Capital Review Farm landlord NZ Rural Land (NZL) is to undertake a capital review of its strategic options. Proposals to conduct the review for completion within the current financial year ending December 31 have been sought, the company said. 'NZL has been listed for coming up to five years. In that time the company has made strong progress in growing its asset and earnings quality and size. 'That has not been reflected in the share price. 'The board considers that the full range of strategic options on the capital structure requires review and input from shareholders.' Shares in New Zealand Rural Land Company (NZRLC) debuted on the NZX at $1.31, a 4.8% premium to their $1.25 issue price, in December 2020. The stock last traded at 99c, after spending much of last year at 85c. Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
