Local institutional investor interest in multi-asset solutions is starting to pick up, according Nikko Asset Management NZ chief, Peter Lynn.
However, Lynn said while multi-asset investing “will become a huge part of Nikko’s global business”, it is likely to be a slow build in New Zealand.
“While it’s early days in New Zealand some asset consultants are starting to see the benefit of the multi-asset approach,” he said.
Multi-asset investing, which Lynn previously likened to the “balanced fund on steroids” , gives managers a broad mandate to allocate between asset classes and underlying investments.
Nikko, along with AMP and Russell Investments, offer multi-asset funds to NZ institutional investors, although Lynn said the products have proven to be more popular in the US, Japan and Europe.
“Australian investors are also investing more in multi-asset solutions,” he said.
Nikko also recently hooked up with global consulting firm Eurasia Group to add a “geopolitical overlay” to the emerging markets component of its multi-asset products.
In a statement, Nikko executive chairman, David Semaya, said the partnership would help the funds manager “quantify important risks related to geopolitics and use that data within our investment portfolios”.
Lynn said the overlay has already garnered interest from investors in Japan and the UK.
Meanwhile, Nikko NZ is on the road this week with investor briefings scheduled for Auckland on Tuesday April 14 and Wellington the following day.