Huljich Wealth Management accounts reveal the KiwiSaver fund management company associated with politicians John Banks and Don Brash was sold to Fisher Funds Management for NZ$20.9 million.
Fisher Funds said in March last year the Huljich KiwiSaver Scheme would be transferred to the Fisher Funds KiwiSaver Scheme, making Fisher Funds one of the largest non-default KiwiSaver schemes in the country.
Huljich Wealth Management was set up in 2007 by Peter Huljich, ACT MP Banks and former National Party and former ACT leader Brash.
In 2010, Huljich stepped down as managing director amid mounting criticism he had topped up funds from his personal resources in a way that artificially boosted their performance figures. He later pleaded guilty to a charge of misleading investors and was fined almost NZ$113,000.
The accounts for the 14 months to May 31, 2011 filed to the Companies Office show share capital of NZ$1,000 and retained earnings of NZ$9.6 million.
Final approval of the sale was received on May 17 and about 87,000 eligible Huljich KiwiSaver members with entitlements of NZ$191 million were transferred to the Fisher Funds KiwiSaver Scheme.
The business sold to the Carmel Fisher run Fisher Funds was the majority of the company’s operations. It retained responsibility to collect debtors and realise payables under the terms of the sale.
The proceeds of NZ$20.9 million were reduced by a NZ$4.29 million write-off of fees, by stamp duty and losses on vehicles sold. This left a gain on the disposal of the business of NZ$16.53 million.
The accounts show other income of NZ$17.2 million, including the proceeds, and just NZ$5.34 million of operating revenue.
The business made a profit of NZ$13.5 million in the 14 months to May 31, 2011 compared to a loss of NZ$771,737 last year.