Wellington-based investment administration firm, Adminis, has been tipped to run custody for the $1.3 billion Auckland Future Fund (AFF).
The win would mark a major institutional coup for Adminis and a more than 10 per cent bump in assets under administration – currently standing at about $10 billion.
As reported last week, the AFF named the Swiss-founded Vontobel as underlying manager for the Auckland Council perpetual fund but left the custodian role blank for now.
The AFF board, chaired by Christopher Swasbrook, have been considering candidates for the separately appointed custodian and now-confirmed global asset manager since last year.
In its July meeting, the board said that “excellent progress was being made and that an announcement on both [custodian and manager] appointments is imminent”.
While the AFF selected Vontobel in June, the win remained a tightly held secret until the Auckland Council completed legal fine-tuning on the deal prior to the formal announcement late in August.
According a release at the time, Vontobel noted the “significance of the Auckland Future Fund and acknowledges that AFF will be an important portfolio in their extensive client base”.
“The AFF Board favoured [Vontobel’s] transparent and competitive pricing structure, noting excellent attention to customer service, open communication and a tailored investment approach,” the statement says.
Nonetheless, the AFF Vontobel move took the market by surprise with Adminis, if confirmed, also something of an outsider.
Adminis opened up to the broader NZ wealth management and investment markets in 2016 following a three-year gestation period in inside the private advisory firm, Crema Capital.
The business, headed by Matan Gan-El now provides administration services to almost 50 clients, more than 120 funds and 45,000 plus underlying investors.
In July last year, Adminis flagged a new wholesale fund-hosting capability, securing its first client – the Australian GCQ global equities product – this February followed by Munro Partners (also from across the Tasman) in April.
The AFF is working with asset consultant, Māpua Wealth (previously known as MyFiduciary), to publish the fund’s statement of investment policy and objectives in September.
Seeded from the $1.3 billion sale of the Council’s stake in Auckland Airport last year, the AFF has a target annualised average return of 7.24 per cent.
Auckland Mayor Wayne Brown said post the Vontobel news: “The Auckland Future Fund will diversify our investment risk while also providing an annual distribution to the council for additional funding for council services and infrastructure and reduce reliance on rates…”