Australia’s potential GDP growth is better than most of its developed market peers over the next 10 years, according to the latest capital markets analysis by Frontier Advisors. But emerging markets are likely to perform better. The assessment was presented last week by consultants Chris Trevillyan, Alvin Tan and Anthony Michael, and included a special… [Read More…]
Health insurer finds new home for $100m
Southern Cross Health Society has gone down the multi-management route for about 20 per cent of its approximately $500 million investment portfolio. Stefan Azzopardi, Southern Cross head of finance, risk and compliance, said the deal recently inked with Russell Investments would see about $100 million placed across three global listed asset classes – equities, infrastructure… [Read More…]
Regulator finds middle ground on fee disclosure…
The Financial Markets Authority (FMA) has given the industry some relief in new fund fee disclosure guidelines released last week. In its new guidance note, the regulator clarifies several controversial fee disclosure issues including the classification of underlying funds, how to treat listed entities and what to include in the manager ‘basic fee’. The changes… [Read More…]
…. as Nikko to expose underlying funds to sunshine
Fee disclosure under Financial Markets Conduct Act (FMC) rules will likely be a work in progress for at least a couple of years, according to George Carter, head of Nikko Asset Management NZ. Carter said fee disclosure, particularly for complex multi-manager funds or those with performance fees, would probably evolve over the next few years… [Read More…]
Murray, Macquarie deals signal private wealth reshuffle
New Zealand is likely to see a further shake-out in the private wealth advisory sector following two major deals inked last week, according to David Fear, First NZ Capital (FNZC) head of wealth and markets. Last Wednesday FNZC took over the wealth management arm of Christchurch-based boutique Murray & Co with Macquarie agreeing just days… [Read More…]
Market to shrug off budget bond cuts
The latest Bill English budget left little trace on the financial services industry last week bar a slight warp in bond prices and a whiff of hope for the country’s most high-profile sovereign wealth fund. In a budget widely-described as ‘sensible’, English promised to pay down government debt at a faster rate than previously anticipated… [Read More…]
BT backs off risk assets
Westpac Bank-owned BT Funds Management NZ (BTNZ) has gone underweight global equities for the first time in almost a decade. According to Matthew Goldsack, BTNZ head of investment solutions, the group adopted a defensive posture last month in response to heightened global risks and stretched valuations “In April, BTNZ moved its multi-asset funds to an… [Read More…]
July release date mooted for fund fee GST paper
The Inland Revenue Department (IRD) plans to release a public consultation document detailing proposed changes to GST on funds management fees this July. According to industry sources, the IRD Office of the Chief Tax Counsel (OCTC) will issue an ‘interpretation statement’ in July, laying out proposals on how GST applies to funds management fees. Last… [Read More…]
Illiquidity at a premium: research digs for solid evidence
Investors have historically paid too much to access illiquid assets, a new study by global consultancy firm Willis Towers Watson (WTW) has found. In a just-published research paper, WTW says – based on its bespoke measure – the illiquidity risk premium (IRP) has been below fair value for longer periods than above it. According to… [Read More…]
How subjectivity can add to objectives-based investing
Objectives-based investing will shape funds management in future, especially with individual investors, who will continue to pay for manager insights but not so much for systematic strategies, according to Matt Olsen, the chief executive of Lonsec Research. Olsen spoke last week at a briefing on ‘The Future of Funds Management’ organised by Pengana Capital for… [Read More…]