This article has been prepared by Craigs Investment Partners, edited by the NZ Herald, and is being published as advertorial.
Craigs Investment Partners celebrate 40 years in business.
It was one of those decisions you sometimes hear about in business – a resolve to expand in spite of the twin setbacks of an earthquake and a sharemarket crash.
The decision, made by Neil Craig, set his company, Craigs Investment Partners, now celebrating its 40 year anniversary, on a unique trajectory after the double hit in 1987. It came not long after Neil, together with Brent Sheather, a colleague from Tasman Pulp & Paper, had bought out Whakatane country broker C.J. Rogers, not knowing the turbulence that would soon follow nor the opportunities it would bring.
Timing is supposed to be everything but buying a small part time country broker in Whakatane just ahead of a crushing earthquake at nearby Edgecumbe and then the 1987 sharemarket crash, would seem very bad luck.
Neil said the Edgecumbe earthquake wrought havoc on Craigs’ fledgling computer records but the ensuing work to address those issues meant Craigs was on top of its settlements and reconciliations record keeping prior to the 1987 sharemarket crash. The industry, however, was not.
On 20 October 1987, when the sharemarket fell 15 per cent in one day, many sharebroking firms struggled under the weight of unreconciled transactions. Craigs had just one outstanding order to trade. As the crash spilled over into New Zealand’s real economy contributing to a prolonged recession, many sharebroking firms were forced to close their doors.
Neil’s decision to expand the business and invest in technology, offered struggling sharebroking firms the opportunity to become a part of the expanding Craigs network with access to global equities and a growing range of in-house services. Craigs acquired offices in Rotorua, Gisborne and Tauranga, and hired additional advisers in its Auckland office. Craigs was now going national and 40 years later, is one of New Zealand’s leading wealth management firms.
Today Craigs has over 180 investment advisers servicing clients across 19 branches nationwide, supported by one of New Zealand’s largest private wealth research teams. Craigs highly regarded investment banking and institutional equities teams also play a key role in New Zealand markets, all combining to offer an integrated business, managing just over $30 billion on behalf of 65,000 clients.
Neil Craig, Founder and Director of Craigs Investment Partners. The 1990’s saw Craigs introduce a holistic approach to investment advice and portfolio management. It’s a philosophy Craigs has continued to build on through the years, with advisers now considering tax awareness, wealth transfers, estate planning, Environmental Social and Governance (ESG) and philanthropic investing alongside traditional investment advice.
In 2008, the industry would again be tested with the onset of the Global Financial Crisis with the NZSE50 Index falling 44 per cent between October 2007 to March 2009 and global markets in turmoil. Then came the Covid-19 pandemic in 2020. The Craigs team was once again, well placed to provide reassurance and advice to clients, this time from the comfort of lounges and home offices across New Zealand.
Over the years, strategic partnerships have played a significant role in the evolution of Craigs. Relationships with global entities such as ABN AMRO and then Deutsche Bank bolstered the firm’s expertise and offerings. Global relationships still play an important role, such as the recently announced strategic partnership with J.P. Morgan Asset Management, providing Craigs clients global access and insights. Today, Craigs is wholly New Zealand owned by approx. 360 of the 630 staff and three Independent Directors, something Neil is very proud of.
Craigs and their communities
With success comes the opportunity to give back and supporting local communities has always been at the heart of the Craigs culture. Local sponsorships and the opportunity to support the communities in which Craigs branches operate, remains core to Craigs values and operations.
The Acorn Foundation was established in 2003 and Neil worked with Bill Holland and other community leaders to structure an endowment fund where the income stream off the capital would fund donations to charitable causes in perpetuity. The concept was successful and in 2017 Craigs became a funding partner alongside The Tindall Foundation, of Community Foundations of Aotearoa NZ. Since 2017, $240m has been invested in endowment funds in New Zealand with to date $60 million in grants distributed to charities and community recipients.
Craigs opens its Head Office in Tauranga, 1990.
Looking ahead
Advances in technology will enhance, not replace, the client-adviser relationship that is fundamental to the business, said Neil. The holistic advice offering continues to expand as intergenerational wealth transfers and sustainability factors become core considerations for clients.
Neil, who remains on the Board but has retired from an Executive role, says the relationship-based approach to wealth management, focus on quality assets and diversified portfolios, and well timed business innovations that have driven Craigs’ past growth, will continue to serve the firm and its clients into the future under Simon Tong, who is now three years into the CEO role.
For the future, Neil is confident that Craigs will continue to guide clients towards their objectives through the ups and downs of the market, delivering for clients, employees and communities along the way.
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This information is general in nature and should not be regarded as specific investment advice. Craigs Investment Partners do not accept liability for the results of any actions taken or not taken upon the basis of this information, or for any negligent mis-statements, errors or omissions. Those acting upon this information and any recommendations do so entirely at their own risk. Craigs Investment Partners did not take into account the investment objectives, financial situation or particular needs of any particular person in the preparation of this information. This information does not constitute a representation that any investment strategy or recommendation is suitable to your individual circumstances or otherwise constitutes a personal recommendation. Craigs Investment Partners recommend seeking advice from a licenced financial adviser about your financial situation and goals before acquiring any financial products or making any investment decision. To talk to one of Craigs Investment Partners’ financial advisers, please call 0800 272 442. The Craigs Investment Partners Limited Financial Advice Provider Disclosure Statement can be viewed at craigsip.com/tcs. Visit craigsip.com.
