ASB has added an allocation to inflation-fighting assets for its KiwiSaver and other funds in a change of tack under new investment adviser, BlackRock. According to just-updated disclosure documents, the ASB KiwiSaver and diversified funds can now include a dose of gold and inflation-linked bonds. For instance, following the changes the ASB KiwiSaver conservative fund… [Read More…]
Investment News
Full FAP licensing gathers steam
With seven months to go until the ‘soft’ deadline for full financial advice provider (FAP) licensing, the regulator is about a sixth of the way through the job – assuming all current transitional licensees make the leap. In its latest update, the Financial Markets Authority (FMA) says more than 300 full FAP licences were issued… [Read More…]
Uncertain quality: research points to why NZ active managers outperform
Somewhat against global trends NZ active fund managers have a long history of index outperformance but a new academic study has thrown some light on why. The research published by the CFA Institute Asia-Pacific Research Exchange (ARX) last week links NZ active manager benchmark-beating feats to macro-economic timing asset tilts. In an analysis of institutional… [Read More…]
Rates uplift prompts higher Salt payout
Salt Funds has lifted the distribution rate on its newish income fund for the first time as rising interest rates, dividends and credit spreads accommodate higher yields. Greg Fleming, Salt head of global diversified funds, told investors last week that the manager’s Sustainable Income Fund would hike the quarterly distribution rate to 1 per cent… [Read More…]
Sorting KiwiSaver (again): industry fears one-sided government review
Government needs to consult widely on any proposed changes to KiwiSaver settings, according to Mint Asset Management marketing head, David Boyle. Boyle said that mooted KiwiSaver reforms, including plans to link the annual member tax credit (MTC) to personal contributions, required input from industry and the public. However, many industry insiders suspect the government will… [Read More…]
Redemptions, volatility carve $10bn more off Magellan
Under-pressure ASX-listed fund manager, Magellan, has shed almost A$10 billion in a fortnight on the back of market volatility and a further spike in redemptions. In an ASX note, Magellan says total funds under management (FUM) slumped to A$77.2 billion as at last Wednesday (February 23) from A$87.1 billion just two weeks prior. “Magellan has… [Read More…]
‘Wretched excess’ and index emperors: Munger takes aim
As passive investing becomes the go-to for a new wave of dumb money, Wall Street’s masters of the universe have been replaced with the emperors of the index – and they likely wield even more power, according to Berkshire Hathaway vice chairman Charlie Munger. The near-centenarian investor believes that institutions like BlackRock and Vanguard will… [Read More…]
Property fund targets $50m in new capital-raise
Unlisted commercial real estate manager, PMG, is looking to raise up to $50 million to acquire a new property for its Generation Fund portfolio. In documents lodged last week, PMG says the retail capital-raising targets a minimum $30 million to fund the purchase of a central Hastings commercial building tenanted by Farmers. Currently, the Generation… [Read More…]
Frontier sees broader hope for alpha in global shares
Active managers are more sensitive than ever to valuation risk. But it might well be a case of ‘go big or go home’. In recent years, Australian asset consultant Frontier has noted a narrowing in the breadth of US equity market return drivers, and short-term extremes of the same, with just a handful of tech… [Read More…]
Investor heavyweights call for global alignment of NZ climate-reporting rules
An Australasian investor climate change collective has urged the NZ government to closely align imminent new reporting standards with global equivalents among a raft of other recommendations. In a recent report, the Investor Group on Climate Change (IGCC) says while NZ is the first country to legislate climate-reporting, it shouldn’t go it alone on subsequent… [Read More…]