Former Public Trust head of corporate trustee services, Andrew Hughes, has popped-up at Booster as its inaugural chief risk officer.
Hughes left Public Trust this June after almost three years at the government-owned institution. Previously, he spent over 15 years in Japan in senior roles at loan-servicing business, Capital Services Group, quitting as national manager of corporate services and CFO for Trustees Executors to take up the Tokyo-based job in 2002.
In a statement, Booster managing director, Allan Yeo, said: “We are continuing to expand the range of services and products that we provide our customers, both directly and through financial advisers. As we innovate and deliver things that are good for customers, Andrew’s appointment continues our commitment to have our team meeting all our obligations.”
At the same time, risk assurance specialist, Richard Kirkland, has replaced, Bruce Edgar, on the Booster Investment Management board. Edgar, NZ cricketing legend and long-time representative of iShares here, retired as Booster director on September 30, ending a six-year innings with the Wellington boutique manager.
Booster has about $6 billion under management including $4 billion or so in its KiwiSaver scheme.
Elsewhere, challenger index investment firm, Kernel Wealth, has hired Matthew Winton in a new portfolio manager position.
Winton has a long career in fixed income derivatives trading, most recently as head of linear interest rate products for BNP Paribas in the UK.
He also spent five years with Citibank Australasia from 1994 dealing in Australian and NZ dollar swaps.
Dean Anderson, Kernel co-founder, said Winton adds to a growing investment team as the manager expands its “product range and respond to increasing wholesale demand”.
“Matt will be exploring new product opportunities for Kernel to respond to increasing market enquiries, as well as supporting the ongoing optimisation of our existing products, such as further enhancements to our positive tracking difference and hedging management policies,” Anderson said.
The Auckland-based group is also looking for another portfolio manager.
Kernel currently offers 14 retail funds plus a KiwiSaver scheme that feeds into the products. As at the end of June, the business reported about $300 million under management including $30 million plus in KiwiSaver.
Meanwhile, NZ’s largest charitable trust, Foundation North, has named Alexandra Corbett to the newly established head of investments and finance role.
Corbett joins Foundation North from ASB where she served as a finance business partner for the last five years following a short stint with IAG in a similar position.
She returned to NZ from the UK in 2016 after about 10 years abroad, working in business finance roles with HSBC Asset Management and BlackRock.
Due to start her new role on November 1, Corbett will be responsible for a wide range of finance duties as well as overseeing the investment management operations and leading a “small but highly skilled investment and finance team and monitoring the performance of external suppliers of service ie – the asset consultant and custodian”, head of foundation services, Liam Sheridan, said.
“Investment related functions will be a large share of the role,” Sheridan said. “She will be responsible for supporting the board on good investment governance and ensuring internal investment operations are sound. This includes overseeing the review of and adherence to SIPO (Statement of Investment Policies and Objectives), including overall portfolio strategic planning and asset allocation in conjunction with the external asset consultant.”
Foundation North uses J P Morgan for custody and the Australian research house, JANA, as investment adviser (since early 2021).
Last November the group reviewed its investment policies with JANA, implementing several changes “covering spending policy, target return, asset allocation, liquidity policy, benchmarks, hedging policy and responsible investment policy”, the latest SIPO says.
“The Foundation’s portfolio will be predominantly managed in an active style using a core-satellite manager structure. By adopting a core-satellite structure the Foundation will achieve a well-diversified, cost-effective passive or enhanced-passive core combined with a number of concentrated satellite portfolios with active mandates and niche/opportunistic strategies,” the SIPO says. “The Foundation acknowledges that there are discrete periods that favour active or passive management and allows flexibility to allocate between passive and active management.”
However, the community trust does not disclose underlying managers, now numbering 30.
Last year Foundation North also launched a new impact investment strategy, kicking off with a $20 million allocation to the externally managed Te Pae ki te Rangi fund “which will be our primary vehicle for undertaking impact investment”.
Founded in 2020, the impact fund is managed by the Toru Group, an alliance of “enterprise focused” firm, The Collective, NZ boutique, Soul Capital, and the Australian Impact Investment Group.
The community trust reported about $1.7 billion under management as at the end of March this year on the back of a steady net-of-fees return of 8.7 per cent.
Expenses for the community trust grew by about $2.3 million during the 12-month period to $62.8 million on the back of a rise in grants to $52.6 million ($49.9 million in 2021) and a $1.4 million hike in administration costs: investment fees covering fund management, custodial and advice fell to $1.4 million from almost $2.2 million in the previous year.
Foundation North admin expenses jumped on higher employee costs of $4.7 million ($4 million in 2021) and $500,000 extra ‘other’ charges.
The community trust has just under 40 staff members.