According to The NZ Herald and other news agencies about $1.5Billion of Investment Funds are changing hands at a so far undisclosed price. My understanding from the information so far is KiwiBank will continue to operate thes funds under the GMI (Gareth Morgan Investments) name with Gareth Morgan remaining at the helm.
My questions are:
1. Where did KiwiBank find the money to purchase this business - has the Government put it's hand in it's pocket using Taxpayers money?
2. If the Government is funding this why wasn't this disclosed?
3. Apart from Gareth Morgan and his offsider Andrew Gawtih what expertise do KiwiBank have in the Funds Management area? This is specialised work with a different philosophy to banking.
4. What back up is there in the funds management area if Gareth Morgan or Andrew Gawith get run over by a bus.
Please be assured in asking these questions I have no concerns about the safety of these funds, which include about $650Million KiwiSaver Funds in the short term, apart from the impact of normal market fluctuations.
One thing I do see is that it seems that Gareth Morgan has organised himself a nice little sinecure which at the end of the day will be funded by the taxpayer. Whale Oil is already on to this and asks if Gareth is prepared to voluntarily pay Capital Gains on his profits - I don't think he will.
Hat Tips: NZHerald, Whale Oil, NewstalkZB, TVNZ