Applicant
ASB Cash Fund
Case number(s)
200810063
Decision date
Type
Decision
Decision number200810063
Application number200810093
Date30 June 2008
Offeror/applicantASB Group Investments Limited as manager of the ASB Cash Fund
Ultimate applicant beneficial ownership100 percent - Australia, Australian Public
Beneficial overseas ownership 
- Asset current100 percent
- Asset proposed100 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)ASB Bank Limited
100 percent - Australia, Australian Public
Business activitiesFinance & Insurance - Financial Institutions
Details of land involvedNone.
Regions involvedVarious
Total considerationThe Fund will receive cash subscriptions from unitholders in excess of $100 million
Consent soughtTo investing on behalf of its unit holders $100 million or more of its funds in a New Zealand dollar on-call interest bearing deposit with ASB Bank Limited.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment.

The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Background to the Investment:
ASB Group Investments Limited (ASBGI) is a New Zealand incorporated company that is an indirectly wholly-owned subsidiary of Commonwealth Bank of Australia (CBA), an Australian bank. ASBGI is currently the manager of a number of unit trusts and group investment funds.

Outline of the Investment:
ASBGI is establishing a new unit trust which is to be known as the ASB Cash Fund (the Fund). ASBGI will be the manager and Trustees Executors Limited (TEL) will be the trustee of the Fund. The Fund will invest, on behalf of its unitholders, in a New Zealand dollar on-call interest bearing deposit with ASB Bank Limited (ASB Bank). ASBGI expects that the Fund will receive cash subscriptions from unitholders in excess of $100 million. The investment of these subscriptions will mean that the Fund is making an overseas investment in significant business assets as defined in section 13(1)(c) of the Overseas Investment Act 2005. The Fund will be open-ended and ASBGI will continue to invest subscriptions received in accordance with the Fund's investment policy in the future.

Rationale for the Investment:
The establishment of the Fund is consistent with ASBGI's strategy to be a market leader in the financial services industry. The Fund will offer a competitive investment product for New Zealand investors and complement the other unit trusts and group investment schemes ASBGI currently offers.

ContactTim Williams
Chapman Tripp
PO Box 2206
Auckland 1140