Private Banking - Frequently Asked Questions
Q: What is National Bank Private Banking's track record?
A: The National Bank has been providing investment management advice for over 20 years, through
Private Banking and Southpac Investment Management Limited. The Private Banking service in its current
format has been available since 1994. The membership of Private Banking's investment and management
committee represents well over 100 years' cumulative experience in financial markets. Funds under
management have grown each year since inception to a current level of over $1.8 billion. This is a
testament to our clients' confidence in our ability to manage their investments.
Private Banking is part of The National Bank of New Zealand, which has been helping New Zealanders
succeed since 1873. It is one of the leading banks in New Zealand and part of the largest banking group in the country, ANZ National Bank Limited.
Q: How are Private Banking staff remunerated?
A: Private Banking staff are remunerated by salary. No commissions or product incentives are given. Staff may be offered an annual performance bonus, but this is not linked to selling or recommending particular products.
Q: What fees are charged for the Investment Management Service?
A: There are three types of fees - an implementation fee, an ongoing investment management fee and
indirect fees. These are explained below and in your Private Banker's Disclosure Statement (note that all
fees, including any indirect fees, are clearly identified on the regular monitoring reports you will
receive):
- Implementation fee - Private Banking clients incur a once-only implementation fee to cover the costs
of setting up their new portfolio. Any upfront 'entry' fees charged by some investments are rebated back to the client. No exit fees are incurred by Private Banking clients.
- Investment Management fee - An investment management fee is charged for the ongoing monitoring and
management of the client's investment portfolio by Private Banking.
- Indirect fees - Some indirect fees such as brokerage rates may be incurred, and will be passed on to
clients. However, these indirect fees are minimised through our investment approach which results in
low turnover and consequently low transaction costs.
Q: What type of investments will my funds be invested in?
A: All our investment decisions are made on a 'best fit' basis to meet your individual needs.
Wherever possible we choose direct and listed investments that can be traded on a market. In some cases,
however, it may be more appropriate to select an unlisted managed fund, term deposit or debenture. A
fundamental characteristic of Private Banking's approach is the freedom to select
investments that best fit our clients' particular requirements.
Q: How liquid is my investment? Can I access my money if I need to?
A: In most cases, your investments can be liquidated to cash at short notice. From time to time,
there may be some investments that have a maturity date or do not have a liquid market. Such investments
may take longer to convert to cash.
Q: How are investment decisions made?
A: Investment decisions are made on the basis of thorough and careful research and analysis. Private Banking has an investment committee which is chaired by our Chief Investment Officer. This committee evaluates the research and makes investment recommendations, which are implemented and managed by our investment department.
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