In the first of a series of five articles addressing trust governance issues, Mark Weaver, partner with actuarial consulting firm Melville Jessup Weaver, lays out the fundamentals for developing and investment strategy. Rather than relying on ongoing capital injections from sponsors, most trusts want to back up their grant-making largesse with a strong investment performance…. [Read More…]
Investment News
TE off-again-on-again sale is off again
It is understood Sterling Grace has withdrawn Trustees Executors (TE) from sale after offer prices fell short of expectations. According to industry sources, TE has told New Zealand clients the firm is no longer on the market with a return to ‘business as usual’. As reported by Investment News NZ (IN NZ) earlier this month,… [Read More…]
NZ Super zeros in on AMP replacement… or not
The New Zealand Superannuation Fund (NZS) has completed its first-round cull of managers up for the biggest outstanding local equities mandate, according to Fiona Mackenzie, NZS head of investments. “We have made progress in appointing an external manager to replace AMP, with shortlisting complete,” Mackenzie said. NZS reviewed virtually all of the country’s local share… [Read More…]
New local equities manager for NZ Funds
New Zealand Funds Management (NZFM) has diversified its Australasian shares exposure, appointing an external locally-based manager in the asset class for the first time. Michael Lang, NZFM chief investment officer, said Devon Funds Management would pick up a $10 million Australasian equities mandate from April 1 this year. Lang said the deal was a “significant… [Read More…]
Exchange trades up with new products, keeps funds chief option open
The NZX could expand its exchange-traded product menu to include an option over the index, according to Sam Stanley, head of exchange products. Last week the NZX rolled out its first tranche of exchange-traded equity options over three single stocks – Fletcher, Spark and TradeMe. Stanley said while more single-stock options were in the pipeline,… [Read More…]
Local bond benchmarks to be overhauled
New Zealand fixed income indices are scheduled for a shake-up under proposals put forward by new index manager S&P Dow Jones Indices (S&P). The mooted changes could see a significant narrowing of the local corporate bond index as well as relatively minor timing changes to the government bond indices. S&P, which signed a deal with… [Read More…]
Relief for KiwiSaver providers as Homestart gets to third base
The KiwiSaver ‘HomeStart’ legislation passed its third reading in Parliament last week, introducing just one minor amendment recommended by the Finance and Expenditure Committee (FEC). In its report published on March 13, the FEC called for transitional disclosure relief for KiwiSaver providers on the new HomeStart rules. “Providers of securities would still need to update… [Read More…]
ESG important for alternatives too: Mercer survey
There appears to be a disconnect between big investor expectations and their fund manager realities in the incorporation of ESG issues in decision-making, according to the latest Mercer survey. The survey was sponsored by a global alternatives manager, LGT Capital, and includes interesting views on ESG in alternatives. Mercer has been at the forefront of… [Read More…]
Institutional investors organise to combat short-termism
Global institutional investors are more committed than ever to implementing long-term strategies, according to New Zealand Superannuation Fund (NZS) head of asset allocation, David Iverson. Iverson said the report published last week by global think-tank Focusing Capital on the Long Term (FCTL) highlights the renewed attention institutional are devoting to the subject. He said while… [Read More…]
Energy opportunities in new global fixed income world
The big call for global fixed income managers this year is not so much the continued search for yield or even the need for more credit, but how to benefit from the restructuring in the energy sector. According to Mark Cernicky, Principal Global Investors managing director and head of global fixed income, the thing is… [Read More…]