Hanover Enters Funds Management Market

13 September 2006

Hanover Enters NZ’s $54 Billion Funds Management Market
-100% capital protection* for investors’ nest eggs-

Hanover’s new funds management business is carving a niche in New Zealand’s $54 billion funds management market, targeting a new client base wanting exposure to international markets and alternative asset classes.

Hanover is making a significant commitment to the development of a range of structured finance products for the retail investor. Internationally these products account for more than 100,000 listings and over $700 billion in investment.

Hanover Funds Management Chief Executive Officer, Perry Cornish, says the new offering addresses the two biggest issues for investors – the potential for a high yield and the confidence that their capital is protected at maturity. “Our Global Growth Fund enables regular Kiwi investors to gain exposure to the growth potential of four of the world’s leading equity markets in a way in which their capital sum is protected at maturity, and without having to pay any annual management fees.”

Mr Cornish says today’s announcement represents an exciting new era for the New Zealand investment community. “Capital protected products are a familiar asset class internationally but Hanover is the first large scale operator to commit to making them readily available to all New Zealanders.”

“Investments that are structured to repay the original amount invested at the end of the investment term are generally associated with low returns, but this new investment product delivers both a potential high yield and capital protection at maturity in a single, highly attractive investment opportunity.”

Hanover’s Global Growth Fund is a five year investment which, at maturity, offers investors a potential return of 50% - the equivalent of 10% for every year invested. The return is based on the five year performance of a basket of four major global indices.

Hanover Funds Management is a member of the Hanover Group. Funds management is a significant new business strand for the organisation – positioned alongside its successful Finance and Property & Infrastructure divisions.

ENDS

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