Investment News

Despite a rare multi-year drubbing – or perhaps because of it – bonds are poised to outperform equities over the next 10 years, according to a new Man Solutions analysis. In another contribution to the perennial bond v equities discussion, now peaking along with interest rate expectations, portfolio manager with the UK-based firm, Henry Neville,… [Read More…]

Almost four years since fending off again a long-standing International Monetary Fund (IMF) call to licence custody providers in NZ, the local regulator has put the issue back on the agenda. In the wash-up from Barry Kloogh ponzi scheme scandal that saw the Dunedin-based adviser defraud clients of some $15 million, the Financial Markets Authority… [Read More…]

NZ investors have seeded the new Dimensional Fund Advisors (DFA) Australian equities fund with about $20 million, taking the ‘systematic’ manager’s own brand PIE assets close to $500 million. The Australian fund assets add to the $450 million DFA has accrued in its two Global Sustainability PIEs (hedged and unhedged versions) since launching the NZ… [Read More…]

Former A$115 billion plus ASX-listed fund manager, Magellan, hit a low of just A$35 billion under management last week as equal parts net outflows and negative returns drained the asset pool. Magellan reported A$2 billion of net outflows in September, mostly from its core global equities strategies, with institutions withdrawing A$1.7 billion and A$300 million… [Read More…]

Morningstar Australia has seen the exit of another long-time top-level executive with the departure of Asia-Pacific director of manager research ratings, Aman Ramrakha, with his role disestablished last week. Several key members have left the Australian arm of the research house, which also services NZ clients, in the wake of a restructure late last year…. [Read More…]

Financial advice delivers quantitative and qualitative benefits, according to a just-published global survey. The study commissioned by the Financial Planning Standards Board (FPSB) found advised individuals were demonstrably better-off across a range of metrics captured in a new index. Released to coincide with World Financial Planning Day last week, the FPSB report says the survey… [Read More…]

NZ has slipped down the ‘financial inclusion’ rankings in the second edition of the Principal Financial Group global review of the relatively new concept. According to the Principal report, NZ fell four places to land at 16th out of 42 countries assessed under multiple metrics covering government, financial system and employer support factors. Overall, however,… [Read More…]

Research Affiliates (RAFI) has claimed global victory for fundamental indexing over market cap-weighted competitors after 15 years in the ring. In a sequel to an earlier RAFI retrospective on the US markets, the ‘smart beta’ pioneer has published a new analysis this month showing its index-style based on fundamental company metrics has outperformed market cap-weighted… [Read More…]

Popularised by Eugene Fama and Ken French in the 1990s, hard-wired stock ‘factors’ are now entrenched in investment theory and practice. The famed Fama-French model underpins the US$630 billion plus Dimensional Fund Advisors business, for example, while many large institutional investors, including the NZ Superannuation Fund, have made large allocations to factor-based strategies. But the… [Read More…]

NZ licensed fund managers look set for more stringent liquidity compliance duties including better use of risk management tools such as ‘swing pricing’ under new draft guidance published by the Financial Markets Authority (FMA) last week. The proposed FMA framework follows the results of a survey of 51 NZ managers last year that identified “gaps”… [Read More…]