The much-anticipated final government report on proposed changes to the Financial Advisers Act (FAA) should be out by the middle of this month. In a release, Paul Goldsmith, Commerce Minister, said he expected to publish the Ministry of Business, Information and Employment (MBIE) review the FAA and the related Financial Service Providers Act “in mid-July”…. [Read More…]
Wealth exit call still on hold, ANZ
ANZ is a “few months” away from deciding on the fate of its wealth management business, according to a bank spokesperson, despite rumours the Australian-headquartered institution was favouring a full exit from the troublesome unit. Last week the Australian Financial Review (AFR) reported ANZ was understood to be favouring a “complete divestment of its wealth… [Read More…]
‘Racist, sexist, xenophobic’ fund management industry
Gender and other biases represent a problem for the fund management industry, especially among alternatives managers, according to participants on both sides of an industry debate last week. The debate, before an audience of about 80 fund management professionals, was produced by CFA Society of Sydney, in collaboration with 3TOM, a group which represents women… [Read More…]
Gold wins in May as fixed income, yield funds dominate exchange-traded year to date
May was a golden month for exchange-traded product (ETP) investors in a year of defensive positioning, according to the latest market analysis by BlackRock. The just-published BlackRock ‘Global ETP Landscape’ May report reveals gold and gold-mining ETPs topped the net flow figures for the month with the sector up by US$5.4 billion. Investment-grade debt (US$2.8… [Read More…]
Back-room access boosts AFA fund insights on Aussie tour
New Zealand financial advisers benefit from ‘kicking the tyres’ of offshore managers, according to Clayton Coplestone, head of third-party marketing firm, Heathcote Partners. Coplestone, just back from Heathcote’s inaugural ‘Best of Breed’ Australian tour, said the intensive round of meetings with seven trans-Tasman fund management firms was an eye-opener for the select group of authorised… [Read More…]
Horses for courses: sports betting as a new asset class
Sports betting could become a new asset class, offering uncorrelated returns to a standard pension fund portfolio with potentially better returns than the average hedge fund, according to a UK study. The study by two quant research managers, Lovjit Thukral and Pedro Vergel Eleuterio, both of Long Rock Capital in London, showed that a relatively… [Read More…]
FMA van Eyk investigation in final phase as Aussie regulator books court date
Almost two years after launching an investigation into the van Eyk group in New Zealand, the local corporate cop is about to close the case on the now-defunct Australian-based advice, research and investment house. According to a spokesperson for the Financial Markets Authority (FMA), the regulator is “finalising the NZ investigation of van Eyk” that… [Read More…]
Southland trust adds and subtracts with new investment equation
The $210 million Community Trust of Southland (CTOS) has invested in a raft of new managers while trimming back exposure to some incumbents. John Prendergast, CTOS chief, said the yet-to-be-completed manager changes followed a review of the community trust’s investments by newly-appointed asset consultant, Aon Hewitt. Prendergast said as well as adding further diversification, the… [Read More…]
NZ Super to appoint factor managers, worries about local liquidity
The New Zealand Superannuation Fund (NZS) is on the cusp of appointing external managers to implement a new ‘factor investing’ strategy. Fiona Mackenzie, NZS head of investment, said the $30 billion plus fund had opted to go down the factor-investing route for a portion of its massive passive holdings. The tilt at factor-investing – also… [Read More…]
… as Parametric cautions on ‘what you don’t know’
With the increasing popularity of factor-based investing it is important to understand potential pitfalls, according to Raewyn Williams, the director, research and after-tax solutions, for Parametric Australia. It’s not as simple as it seems. In a recent client note Williams says super funds are becoming increasingly attracted to factor-based investing because it offers transparency and… [Read More…]