Russell Investments has joined the growing band of managers to specifically exclude controversial weapons manufacturers from its investment universe. In a note to NZ clients earlier this month, Russell says the change followed a recent review of its environmental, social and governance (ESG) process. “This has resulted in the exclusion of companies involved in the… [Read More…]
Investment News
Measure for measure: uneven returns, lumpy risks and how to iron out kinks in the data
Investors need to look beyond traditional measures of asset class volatility and correlation in portfolio construction, according to Mark Kritzman senior lecturer in finance MIT Sloan School of Management. In a paper published last week by the International Forum of Sovereign Wealth Funds (IFSWF), Kritzman says while textbook portfolio theory assumes a “single distribution” regime… [Read More…]
AMP Capital exposes gender roadblocks with ‘Peter principle’
The funds management industry is well versed in the benefits of investment diversity, which was first proven way back in the 1950s with the establishment of Modern Portfolio Theory. Why then have we not embraced gender diversity? In a 20-page white paper entitled: ‘Gender Diversity – The Real Reason We Are still Talking About It‘,… [Read More…]
PIMCO pins the fat tail on 2017
‘Unknown unknowns’ could distort the probability curve for 2017 well beyond the norm, according to the latest cyclical outlook from global bond mega-manager PIMCO. The PIMCO analysis says events of the previous 12 months have put the world on notice for further surprises with the “only certainty” for 2017 “that the tails of the distribution… [Read More…]
The digital views of Microsoft’s Kiwi boss as she joins Suncorp
Organisations need to set themselves up to embrace all the technological changes happening around the world, to embrace and adapt with the disruptions. The financial services industry is not immune from the trend. Pip Marlow, the outgoing managing director of Microsoft Australia, who last week announced she would join Suncorp as its first ‘CEO of… [Read More…]
Biggest Aussie LIC goes down the middle
Australia’s largest listed investment company (LIC) has gone mid-market over the last three years expanding its holdings by about 30 per cent in the process, according to Geoff Driver, general manager of the Australian Foundation Investment Company (AFIC). Driver, in NZ earlier this month presenting to AFIC local shareholders, said the A$6.5 billion Australian equities… [Read More…]
The top 10 compliant stories you must read this summer…
Rules are rules. End-of-year media sign-offs are required by law to include a top 10 list. And in a spirit of compliance, here’s the 10 most-read Investment News NZ (IN NZ) stories over 2016 in descending order: Advice reform puts clients first, ditches designations, welcomes robots Wellington investment admin firm opens up to the world… [Read More…]
Local private equity investor buys half of MMC
NZ private equity investor, Pencarrow, has taken a 50 per cent stake in Auckland-based fund administration firm MMC via a new investment vehicle. In a deal confirmed last week, the Pencarrow Bridge Fund completed its first investment with the purchase of a half-share in the MMC holding company for an undisclosed sum. Nigel Bingham, Pencarrow… [Read More…]
IOOF, that ‘scandal’ and the Perpetual rumour
IOOF, a 160-year old diverse financial firm built up in recent years largely through takeovers, has had its ups and downs. An increasingly mooted potential merger with 120-year-old Perpetual Trustees, which has had a more conservative growth trajectory, makes a lot of sense. But first, to that ‘scandal’. Dominic McCormick, a researcher and portfolio manager… [Read More…]
KiwiSaver scheme on fast-track to $70m
Start-up benchmarkian KiwiSaver scheme, Simplicity, has cracked through the $50 million mark more than six months ahead of budget. Andrew Lance, Simplicity chief operating officer, said the scheme, officially launched in July this year, hit $50 million late in November and was on track to reach close to $70 million before Christmas. Lance said Simplicity… [Read More…]