The official warning issued to JP Morgan NZ (JPMNZ) for breaching anti-money laundering rules last week could be the first of many to hit the industry as regulators move into enforcement mode, according to consultancy firm AML Solutions. Martin Dilly, AML Solutions director, said while regulators have allowed industry participants a period of adjustment since… [Read More…]
Investment News
Rotorua trust closes door on in-house model; TIML takes heat on Tasmanian exposure
The $150 million Rotorua Energy Charitable Trust (RECT) is beginning the transition from in-house investment management to a Mercer implemented consulting solution this month. Grahame Hall, RECT chairman, said the decision to swap its in-house funds management for a Mercer offering was “difficult … but definitely the right one”. “We wanted a wider spread of… [Read More…]
NZX indices set for reweighting as S&P methodology takes over
Different calculation methods could see a rejig in company weightings when the new S&P/NZX equity indices are implemented in June. According to NZX spokesperson, Kate McLaughlin, following a deal inked last month with S&P, the new co-branded indices will differ slightly from the previous versions published by the stock exchange. “The only material methodology change… [Read More…]
Thomas Murray shuts NZ, opens in Australia
Thomas Murray IDS, the specialist international custody consultant, has re-established a Melbourne office with the recruitment of two experienced executives formerly from NAB and will part company with Peter Katz, who has represented the firm for the past five years from his base in Wellington, New Zealand. Brian Keogh and Adam Zani will staff the… [Read More…]
Magellan blazes a new path for ASX-traded funds
Magellan Asset Management seeded its new-style Exchange Traded Product (ETP), a listed-but-open-ended active global equities fund, with $50 million and enjoyed a net inflow of $13 million from investors on day one. Judging by the response, the fund is set to be emulated by many others. Magellan started work on the product about 18 months… [Read More…]
Mercer portfolio moves point to scheme merger ahead
Mercer has added three more portfolios to its main KiwiSaver scheme aligning the investment choices closely with the manager’s employer-based Super Trust KiwiSaver. It is understood the changes, which increase the number of Mercer default scheme investment portfolios from four to seven, are a precursor to winding down the Super Trust KiwiSaver, which is now… [Read More…]
NZDF goes on manoeuvres with new KiwiSaver plan
The New Zealand Defence Force (NZDF) will launch its own KiwiSaver scheme, backed with Mercer investment and technology platforms. As reported on Investment News NZ (IN NZ) last month, Mercer won the contract to supply investment and admin services to the $355 million NZDF super scheme. But the NZDF, according to Brigadier Howie Duffy, assistant… [Read More…]
Fund managers win, financial advisers lose as tech war heats up…
Fund managers are well-placed to survive the technology-driven disruption sweeping through the financial services industry, according to a new global report. Published by the UK-based research firm Create, headed by Amin Rajan, last week, ‘Why the internet titans will not conquer asset management’ concludes fund managers should be able to retain their market positions despite… [Read More…]
… as software guru tips funds management price deflation
By Greg Bright* The ‘value chain’ in funds management, currently worth about 100bps, will deflate by 70-90bps in the next five-10 years, according to Ashley Porter, the founder of the zero-fee self-managed superannuation fund admin company McLowd. He provided a shock-and-awe presentation to the industry on the Gold Coast last week. At the ‘My Platform… [Read More…]
Yearbook finds equity risk premium reliable (but don’t bet on mean reversion)
The global equity risk premium (ERP) over US Treasury bills held at a steady 4.3 per cent during the last 115 years, according to the latest Credit Suisse ‘Global investment returns yearbook’. In the latest iteration of its well-respected annual market statistical analysis, authored by the London Business School’s Elroy Dimson, Paul Marsh and Mike… [Read More…]