Jarden, NAB form FirstCape including Harbour

The new organisation will be called FirstCape and will combine the JB Were New Zealand's operations, Harbour Asset Management, and NAB's BNZ Investment Services with Malcolm Jackson, currently chief executive of Jarden Weath and Asset Management, as its first chief executive.

FirstCape will have $29 billion in funds under advice and administration and another $15 billion of funds under management (FUM) – Harbour currently has about $8 billion FUM – and will employ 113 advisers.

Jackson said that the three advices businesses, JB Were, Jarden and BNZ, will continue to operate with no changes in the way they serve clients.

NAB will own 45%, Jarden 20% and PEP 35% of FirstCape and both NAB and Jarden will receive an unspecified cash payment.

Harbour managing director Andrew Bascand says he isn't authorised to comment but that Jackson would call GoodReturns later in the day.

Earlier this year in its annual report, Jarden said it was planning to hive off its wealth management business from its other stock broking and merchant banking activities with the transfer being complete in about 12 months once licensing conditions have been met.

Jarden says the merger will bring “an enhanced client offering by providing a complete suite of services tailored to every client's unique needs at whatever stage of their investment life cycle.”

It will also grow the BNZ KiwiSaver scheme by expanding its product offering and leveraging Harbour's capability and the BNZ distribution network.

The Jarden merchant bank will continue to focus on its advice, capital markets, stock broking and research businesses.

Jarden's wealth management arm made a net profit of $11.1 million in the 15 months ended March 31 – the company changed its balance date from December 31.

Jarden owns 76.3% of Harbour Asset Management and Bascand owns another 4.75%, with the remaining shares owned by senior Harbour staffers.

The merger is subject to regulatory approvals with completion expected in the first half of 2024.

The merger announcement follows Forsyth Barr's purchase last week of Hobson Wealth for an undisclosed sum to create a team of more than 220 financial advisers working from Forbarr's 25 offices around the country and take funds under advice to more than $30 billion.