Market View From the Top from Spicers General Manager Gordon Noble-Campbell

Change of ownership for AXA in Australia and New Zealand

9 March 2011

The Supreme Court of Victoria (Australia) has approved the A$13 billion merger of AXA Asia Pacific Holding's Australian and New Zealand businesses with AMP.

This is the final step in the sale process which followed last week’s shareholder meetings in Australia, where all resolutions put to AXA Asia-Pacific (AXA APH) shareholders were approved.

As a result the ownership of AXA - which owns the Spicers business - transfers to AMP. This is a positive development for Spicers and our clients as we continue to be backed by a very strong Australasian business committed to providing clients with quality wealth management and investment services.

In New Zealand before the merger, AMP had 33.9 per cent and AXA 5.2 per cent of the $25 billion retail managed funds industry, based on December 2010 figures provided by Morningstar.

The merged entity now controls 39.1 per cent or $9.8b, bigger than the combined funds managed by OnePath, ASB and BT Westpac which together control 36.9 per cent or $9.2b of the market.

The merger will further consolidate the KiwiSaver sector with the top three fund managers - One Path, ASB and AMP-AXA - controlling 64.5 per cent of the $7.4b market. Pre-merger, AMP had 12.2 per cent and AXA 7.6 per cent.

Spicers is no stranger to ownership changes. Some clients will remember the company's founder Brian Stevenson in 1987, and the shift to Spicer & Oppenheim the following year. In the early nineties Craig Dawson and George Kerr became involved in the business, followed by Sterling Grace and then AXA in 2001. The strength of the Spicers brand today is testament to the strength of the business.

The change in ownership of our parent company is supported by AMP’s publicly expressed commitment to a multi-brand planner strategy, with the strength of the Spicers brand in particular, a tangible asset of the combined businesses in New Zealand.

For Spicers clients it’s business as usual. If you have any queries, please contact your adviser who will be happy to assist.