The $1 billion Tauranga-based charitable trust, TECT, has tweaked its investment portfolio, adding three managers to the line-up in a first change advised under new asset consultant, Frontier.
TECT (formerly the Tauranga Energy Consumer Trust) has named Edinburgh-based Skerryvore Asset Management to run an emerging markets equities allocation with Australian real estate investment firm, Resolution Capital, picking up a listed property mandate and Castle Point joining the Australasian shares panel.
Skerryvore, which is represented by third-party boutique distribution outfit Bennelong Funds Management in Australasia, replaces Mercer in the emerging markets role while Castle Point steps in for the now NZX-owned QuayStreet in a job shared with Nikko.
Bennelong is known as BennBridge in the UK where it represents Skerryvore and other firms.
Resolution, a manager featured in the ANZ Investments diversified funds, fills a new listed real estate slot for TECT that previously only held unlisted property through Mercer (which remains on the list).
TECT also retains Mercer for unlisted infrastructure and indexed international shares as well as Vanguard (global small companies) and Nikko (cash). The charity, too, invests in nine private equity funds.
Following a legal restructure in 2021, TECT transformed from a local electricity fund (paying annual dividends to residents) to a perpetual charity along the lines of community trusts.
The change also saw then TECT consultant, Fidato Advisory, retire with the Australian firm, Frontier, emerging as the surprise replacement. TECT was the first NZ win for Frontier, which has since been in the running for other consulting roles this side of the Tasman. Harry Green, Frontier principal consultant, has responsibility for NZ clients.
Wayne Werder, TECT general manager, said the investment strategy has adapted to meet the fund’s new broader objectives.
“The TECT portfolio is evolving along with our new mandate and on the advice of recently appointed asset consultant, Frontier,” Werder said. “We believe the latest manager changes have added further diversification and improved the efficiency of the portfolio in line with our goal of delivering long-term sustainable returns to support the Tauranga/Western Bay of Plenty community.”
While the TECT assets are valued at $1 billion about 60 per cent is tied up in shares of the local electricity firm (Manawa Energy) with $455 million currently allocated to the diversified portfolio.