Swiss investment firm, Vontobel Asset Management, has surfaced as the surprise pick to manage the $1.3 billion Auckland Future Fund (AFF).
Following an almost nine-month selection process, the Auckland Council-owned AFF confirmed Vontobel as underlying manager for the fund last week.
Despite selecting the Swiss multi-asset manager in June, the AFF conducted “extensive compliance and due diligence work” in the intervening months, according to a statement.
Chris Swasbrook, AFF chair, said in the release: “We’re pleased to have appointed a global investment manager with proven expertise in long-term capital growth and returns. I want to acknowledge the AFF Board and Māpua Wealth, who advised us during this important process.”
Vontobel is better-known for its ‘quality growth’ global equities strategies in NZ where the manager serves on the international shares panel for ANZ.
Founded in 1924, the firm listed on the SIX Swiss stock exchange now has a presence in 28 global locations including Australia.
As at the end of June, Vontobel reported CHF233 billion (almost NZ$500 billion) under management across the world.
Bobby Bostic, Vontobel head of sales for Australia and NZ, said in the release: “We look forward to delivering on the objectives set by the council, which include creating long-term benefits for the Auckland region and protecting the value of intergenerational investments.”
The Auckland Council has budgeted average annualised returns for the AFF at 7.24 per cent.
Established from the proceeds of the sale of the Auckland Council shares in the city airport last year (and due for a $45 million top-up after the local government offloaded its holdings in Marsden Maritime), the AFF begins the Vontobel era with just over $1.3 billion under management.
Since exiting the Auckland Airport share register, the AFF held the money in various bank on-call and term deposit accounts, earning about $33.4 million along the way.
“A distribution of $38 million was paid to the council for the period 9 December 2025 to 30 June 2025,” the release says. “This was 13.9 per cent higher than forecast, driven by higher-than-forecast sales proceeds from the divestment of AIAL shares and lower transaction costs.”
According to the release, the decision to dump the airport equities before naming an investment manager was a deliberate strategy to “maximise” returns from the transaction.
“… the market did not expect a share sale before the global investment manager was formally appointed,” the AFF statement says.