Mercer has added three more portfolios to its main KiwiSaver scheme aligning the investment choices closely with the manager’s employer-based Super Trust KiwiSaver. It is understood the changes, which increase the number of Mercer default scheme investment portfolios from four to seven, are a precursor to winding down the Super Trust KiwiSaver, which is now… [Read More…]
NZDF goes on manoeuvres with new KiwiSaver plan
The New Zealand Defence Force (NZDF) will launch its own KiwiSaver scheme, backed with Mercer investment and technology platforms. As reported on Investment News NZ (IN NZ) last month, Mercer won the contract to supply investment and admin services to the $355 million NZDF super scheme. But the NZDF, according to Brigadier Howie Duffy, assistant… [Read More…]
Fund managers win, financial advisers lose as tech war heats up…
Fund managers are well-placed to survive the technology-driven disruption sweeping through the financial services industry, according to a new global report. Published by the UK-based research firm Create, headed by Amin Rajan, last week, ‘Why the internet titans will not conquer asset management’ concludes fund managers should be able to retain their market positions despite… [Read More…]
… as software guru tips funds management price deflation
By Greg Bright* The ‘value chain’ in funds management, currently worth about 100bps, will deflate by 70-90bps in the next five-10 years, according to Ashley Porter, the founder of the zero-fee self-managed superannuation fund admin company McLowd. He provided a shock-and-awe presentation to the industry on the Gold Coast last week. At the ‘My Platform… [Read More…]
Yearbook finds equity risk premium reliable (but don’t bet on mean reversion)
The global equity risk premium (ERP) over US Treasury bills held at a steady 4.3 per cent during the last 115 years, according to the latest Credit Suisse ‘Global investment returns yearbook’. In the latest iteration of its well-respected annual market statistical analysis, authored by the London Business School’s Elroy Dimson, Paul Marsh and Mike… [Read More…]
Unfinished Homestart business leaves providers hanging
With the new KiwiSaver ‘Homestart’ program set to go in a month, some providers are worried the enabling legislation may not be enacted in time for the implementation deadline. While providers are gearing up to handle Homestart applications from April 1, the Finance and Expenditure Committee (FEC) considering the ‘Taxation (KiwiSaver HomeStart and Remedial Matters)… [Read More…]
Ex BNP Paribas chief gets cracking at new job
By Greg Bright* Mercer Sentinel is looking to expand its capabilities in workflows among super funds and other clients, targeting inefficiencies between front, middle and back-office systems and procedures. Peter Baker, who joined the firm as Australia and New Zealand head late last year, has already recruited a senior consultant. Baker, who joined from BNP… [Read More…]
ANZ’s Swiss partner hires ex Russell consultant to drive insto sales
Swiss wealth management firm and ANZ global equities partner, Vontobel Asset Management, has signed up former Russell NZ consultant, Bobby Ross Bostic Jr, to drive institutional sales in Australasia. Bostic, who finished a six-month stint with Russell NZ last February, would support Vontobel AM’s “growing activities in Australia and New Zealand”, the firm said in… [Read More…]
Independent trustee drought forecast
Restricted KiwiSaver and workplace super schemes could face a demand squeeze on independent trustees with just five licensed to date under the new Financial Markets Conduct Act (FMC). Bruce Kerr, head of Workplace Savings NZ, said the “best guess” suggests 20-25 independent trustees should be adequate to service the super industry under FMC – depending… [Read More…]
Harbour grows global PIE in deal with T Rowe Price
Harbour Asset Management has launched a new wholesale global equities Portfolio Investment Entity (PIE) fund in association with renowned Baltimore-based growth manager, T Rowe Price. While T Rowe Price markets to larger institutions here directly, Andrew Bascand, Harbour managing director, said the deal would give smaller-scale New Zealand investors tax-effective access to one of the… [Read More…]