Investment News

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…]

Milford Asset Management is seeking to emulate the success of its flagship NZ Active Growth fund with a new product aimed at the Australian market. Formally launched last October, the Milford Australian Absolute Return Growth Fund – the Auckland-based manager’s first Australian-domiciled product – has already raked in over $10 million, according to co-founder and… [Read More…]

The year ahead will be tough for fund managers globally a new Deloitte report argues as margin squeeze, ongoing technological disruption, regulatory pressure and consumer revolt come to a head. According to the Deloitte ‘2018 Investment Management Outlook’, the average funds management business “will likely be less profitable and have roughly the same assets under… [Read More…]