The BlackRock Investment Institute’s quarterly ‘Capital Market Assumptions’ report, which is a guide many investors use around the world, has plumbed new lows following market volatility since late last year. The latest report, published last week, puts the five-year returns for both equities and bonds at near post-GFC lows. The main points, BlackRock says, are: Compressed… [Read More…]
Survey finds fintech threat half-way to tipping point for funds, advisers
Funds management and financial advice firms expect to lose over 20 per cent of business to ‘fintech’ operators over the next five years, according to a new global survey of industry leaders. The PwC survey of almost 550 top executives in traditional financial firms, technology companies, consultancies and regulators, found asset management and financial advisory… [Read More…]
NZ government funds need more governance, OAG report
A new Office of the Auditor-General (OAG) report has called for stronger governance procedures and an overarching plan for managing Crown financial assets. The OAG report published last week made three core recommendations based on in-depth research carried out by consultancy firm Fidato Advisory on 14 NZ government-owned entities. According to the report, there was… [Read More…]
Wellington investment admin firm opens up to the world
Wellington-based investment back-office firm, Adminis, is revving up to compete head-on in the New Zealand market with its public website going live a fortnight ago. Adminis, which has links to Xero, TradeMe and FNZ, emerged out of private wealth firm, Crema Capital, in 2013 but has been operating behind the scenes until this month. Martin… [Read More…]
Reserve Bank settles on tech short-list as NZX told to clear off
The Reserve Bank of New Zealand (RBNZ) has already short-listed technology providers to reboot NZClear after scuppering plans to sell its securities settlement business last week. According to an RBNZ spokesperson, the central bank was “well-advanced” in its search for a systems provider to modernise NZClear, beginning a tender process last year. The spokesperson said… [Read More…]
Quality quant shows promise for NZ stocks
Harbour Asset Management is trialing a new qualitative overlay that in back-testing added up to 2 per cent of outperformance, Andrew Bascand told an adviser briefing in Wellington last week. Bascand said the process rated the quality of companies according to a simple “binary” nine-point scoring system developed in 2002 by Stanford University professor, Joseph… [Read More…]
Sovereign DIMS handover almost leak-free for JMIS
Just 4 per cent of Select Wealth Management funds bailed out during the shift from Sovereign to JMIS control, according to JMIS director, Andrew Kelleher. Kelleher said 96 per cent of Select’s approximately $600 million funds under administration remained with JMIS following the now-completed handover from Sovereign. “The very high take-up exceeded our expectations,” he… [Read More…]
Messy independence issues, offshore debt products set for regulatory clean-up
The Financial Markets Authority (FMA) is seeking industry feedback on four regulatory loose-ends in another burst of pre regime-change housekeeping. In a consultation document released last week, the FMA attempts to tidy up a range of technical issues including the legal status of licensed independent trustees (LITs) under certain corporate structures. “Questions have been raised… [Read More…]
What family offices and HNWs think about diversification
In its second annual think tank involving family offices, high net worth investors and their specialist advisors, Brookvine dissected the value of diversification. The differences between these investors and big super funds are fascinating. The super funds are not always right. Steven Hall, managing director of Brookvine, a fund manager and distribution firm, said the… [Read More…]
CIMA heads to NZ after Rich agreement
The Investment Management Consultants Association (IMCA) has signed a deal with Graham Rich-owned firm Portfolio Construction Forum (PCF) that would see the organisation establish its educational mark in New Zealand. Under the deal, inked with both IMCA’s US headquarters and Australian branch, PCF has been charged with managing and growing the association’s Certified Investment Management… [Read More…]