Investment News

NZ income funds have delivered almost double the returns of pure bond markets over the last year, the latest Melville Jessup Weaver (MJW) investment survey reveals. In a new wing of its diversified fund sector analysis MJW found the group of five NZ-based income products returned a median 9.2 per cent over the 2017 calendar… [Read More…]

Institutional investors remain dubious about NZX plans to attract smaller company listings via a dual level disclosure regime under its proposed new listing rules. Most of the five funds management groups submitting on the NZX draft rules rejected the plan allowing listed companies to comply with either ‘premium’ and ‘standard’ rules. The NZX proposal, intended… [Read More…]

We all know that index funds and so-called smart beta funds can, and maybe should, co-exist with active management. What we don’t know, yet, is how and to what extent this should happen. This report is based on the views of two well-respected analysts in the institutional market. APRA, with the rest of the industry,… [Read More…]

Ex-head of ANZ Investments Australasian equities, Mark Brown, has formally stepped into the newly-created role of chief investment officer at Auckland-based boutique Devon Funds Management in a deal first announced five months ago. Brown, who finished his long ANZ career at the end of October last year, assumed his official duties at the $2 billion… [Read More…]

Robo-advice could be operational in NZ within six weeks as the Financial Markets Authority (FMA) puts the finishing touches to a much-consulted exemption notice. A spokesperson for the regulator said the FMA would be “open for applications from providers seeking to offer digital advice by relying on the exemption by the end of March 2018”…. [Read More…]

The impending financial advice law reforms will likely accentuate the divide between boutique firms and the big end of town, according to a new report, with smaller businesses set to face some tough decisions. While many details of the Financial Services Legislation Amendment Bill (FSLAB) and the associated adviser code rewrite remain moot, the December… [Read More…]

Morningstar, the global research house, has developed a reputation in recent years for focusing on ESG issues for both managers and their clients. Its latest report on the subject highlights three important trends. Jon Hale, Morningstar global director of sustainability research, cites three trends, which resonate in the Australian and New Zealand market: . Climate… [Read More…]

Rising yields are on the menu for 2018 if the global consensus forecast of growth, inflation and monetary policy normalisation play out, according to AMP Capital NZ chief economist, Bevan Graham. In an article penned last week, Graham says AMP concurs with the general investor expectations of rising inflation egged on by solid growth and… [Read More…]

After falling to a 50-year low volatility could return with a vengeance if reality deviates from market expectations in the year ahead, a new paper from multi-affiliate funds management firm Legg Mason says. “A prolonged period of low volatility can also act to increase the scale of volatility once it returns,” the ‘Legg Mason 2018… [Read More…]

US-headquartered firm Cambridge Associates has picked up the investment consultancy gig at the $200 million plus BayTrust replacing long-time incumbent Russell Investments. Alastair Rhodes, BayTrust CEO, said Cambridge would take over portfolio duties this April from Russell, which has held the role for 20 years. The tender attracted seven bids that were whittled down to… [Read More…]