Providers need to find ways to make KiwiSaver “feel real” to a large bloc of members, according to Financial Markets Authority (FMA) chief, Rob Everett. Everett said the FMA’s latest ‘Investor Confidence’ survey, released last week, shows KiwiSaver has not acclimatised all members to financial markets. The survey found respondents whose only investment was in… [Read More…]
Investment News
Sovereign funds favour equities, factors (but crypto-curious)
More than half of sovereign investors are overweight equities despite concerns about valuations, inflation and geo-political tensions, according to new research by Invesco. The sixth annual Invesco ‘Global Sovereign Asset Management Study’ found equities has overtaken fixed income as the biggest asset class across the 126 entities, representing a collective US$17 trillion, included in the… [Read More…]
Asset management: the golden age draws to a close…
Winning asset management firms are increasingly separating themselves from the pack, according to an annual study by Casey Quirk. The gap between the winners and the losers is widening. And increasing revenues is no longer a guarantee that profits will increase too. The golden age of asset management appears to have finished. The study, ‘Investing… [Read More…]
… as Bain & Co predicts ‘stark choices’ ahead
Global management consulting firm Bain & Co says the recently benign environment of “easy money” for asset managers has masked troubling secular trends. The firm, like Casey Quirk, is also predicting a “sharp decline in profits per asset” managed. But Bain & Co’s report, ‘After the Easy Money Boom: Stark Choices for Asset Managers’, says… [Read More…]
US fund giant seals NZ distribution deal
The US$1.7 trillion US-headquartered fund manager, Capital Group, has signed up with Heathcote Investment Partners to distribute its products in NZ. In a deal inked with Capital’s Australian subsidiary, Heathcote would front the brand this side of the Tasman with the group’s New Perspective Fund (NPF) and New World Fund (NWF) first cabs off the… [Read More…]
How beliefs and portfolio construction shape outcomes
An under-researched element in the professional investment process is portfolio construction. Yet, according to a joint research effort by implementation specialist manager Parametric and the Sydney-based Australian Catholic Superannuation and Retirement Fund, the rewards can be very significant. The research report, ‘Optimality Is in the Eye of the Beholder: The Science and Art of Equity… [Read More…]
UK regulator moves to reduce costs of pension freedom
The UK financial regulator has proposed a series of measures to help retirees cope with recently-won pension investment freedoms. According to a recent Financial Conduct Authority (FCA) consultation paper, many UK retirees – especially those who had not sought financial advice – were opting for high-cost, conservatively-invested pension options. In 2015 the UK government removed… [Read More…]
KiwiSaver, PIEs last in line for tax enquiry; inflation-indexing floated
The Tax Working Group (TWG) would likely consider the impact of any proposals on the NZ investment regime as one of the last agenda items. TWG chair, Sir Michael Cullen, said any review of the potential effect of any tax changes on the current NZ investment regime – including KiwiSaver – was some time away…. [Read More…]
Bank wars escalate as ANZ/CBA pinged for up-selling super
The Australian financial regulator continued its assault on the under-fire banking sector last week after extracting ‘enforceable undertakings’ (EU) from two big brand banks. Under the EUs published last Friday both ANZ and the Commonwealth Bank of Australia (CBA) have promised to stop branch staff from selling in-house superannuation funds off the back of cursory… [Read More…]
BNP wins big Suncorp securities services mandate
Suncorp’s securities services mandate, which was put out for tender at the end of last year, has been won by BNP Paribas Securities Services. The mandate was previously held by NAB Asset Servicing on a five-year deal. Suncorp, though, also holds a one-year option to continue with NAB, making for an easier transition period if… [Read More…]