Regulatory pressure has seen some NZ fund managers abandon marketing campaigns featuring ethical subject matter amid a tighter focus on ‘integrated’ investment products by the Financial Markets Authority (FMA). In a summary of observed ethical (and related) investment practices published last week, the FMA notes some advertising materials talking up such strategies did not match… [Read More…]
Value-of-advice shines again in Russell NZ report
Russell Investments has repriced the value of financial advice in 2024 at 4.7 per cent in its fourth annual review of the NZ market. The Russell gauge fell from almost 6 per cent last year but the somewhat notional figure still highlights how financial advice adds value for clients well above fee levels. In a… [Read More…]
NZ Super gets top marks, but room for improvement in WTW review
The New Zealand Superannuation Fund (NZS) “stands out among global peers”, according to WTW, but should consider insourcing its private markets investments and establishing an overseas presence to improve access to deals and talent. Under the review, carried out by WTW, the NZS achieved “excellent” ratings across its business, governance, people and investment models, and… [Read More…]
Pension funds rebound but see 3D challenges ahead
Global pension funds returned to growth mode in 2023 following sharp losses the previous year but participants will need to update investment models amid more complex systemic challenges, a new survey of the sector has found. The latest Thinking Ahead Institute (TAI) annual study of the 300 largest pension funds across the world shows assets… [Read More…]
Finding alpha: how AI will make quants quick
Machine-learning and artificial intelligence (AI) techniques are poised to make investment ‘alpha’ easier to find but quicker to disappear, according to a new Robeco paper. The think-piece authored by Robeco head of next gen research, Mike Chen, says a step-change in technology will increase the ability of quantitative-based investors to identify sources of outperformance in… [Read More…]
Greg Bright: legend, friend
Australian financial services industry publishing legend and good friend of Investment News NZ, Greg Bright, died last week after an accident. Greg almost single-handedly invented the financial trade journalism genre in Australia with an extensive back catalogue dating back to Super Review, the still in-service title covering the superannuation sector across the Tasman. In launching… [Read More…]
FNZ founder moves to board role; BNZ investments chief exits
Adrian Durham has quit as chief of FNZ to take on a governance role at the company he founded in Wellington more than 20 years ago. Durham remains as FNZ non-executive founding director and senior adviser during a leadership change that coincided with a further US$1 billion capital injection from shareholders. He makes way for… [Read More…]
IRD repeats history in GST and funds fees position paper
In a draft ruling set to disappoint boutique investment managers the Inland Revenue Department (IRD) has deemed fund fees as GST-exempt while outsourced services remain subject to the sales tax. The just-released IRD ‘interpretation statement’ attempts to resolve an issue that has dogged the industry for more than a decade by essentially restating its previous… [Read More…]
Government to set free KiwiSaver-stuck QROPS funds
The government has moved to allow UK pension money currently stranded in KiwiSaver schemes to escape in new tax legislation tabled last week. Under the proposed omnibus law, qualifying recognised overseas pension scheme (QROPS) transfers will also be much easier via new provisions enabling local providers to manage immigrant member tax payments. Simon Watts, Revenue… [Read More…]
Foundation North rewrites asset disclosure, returns circa 14%; Rātā rises again
The $1.7 billion plus Foundation North has removed a hangover from its former investment adviser by moving to a per asset class disclosure model. “Previously, the Foundation categorised its investments into growth assets, diversification assets, inflation hedging assets, and deflation hedging,” the Auckland-based community trust says in its 2024 accounts. “However, in the current year,… [Read More…]