ASB has added an allocation to inflation-fighting assets for its KiwiSaver and other funds in a change of tack under new investment adviser, BlackRock.
According to just-updated disclosure documents, the ASB KiwiSaver and diversified funds can now include a dose of gold and inflation-linked bonds.
For instance, following the changes the ASB KiwiSaver conservative fund can invest up to 10 per cent in a gold index-tracking fund managed by BlackRock.
Meanwhile, ASB will share the inflation-linked bond duties between State Street Global Advisors, for global, and First Sentier Investors will manage the NZ portfolio.
Both State Street and First Sentier are existing managers on the ASB palette with the former in charge of most global fixed income and Australasian equities assets (all index-based) and the latter running cash and NZ bonds.
State Street is also holds a, currently null, global government bond mandate for ASB.
BlackRock, which took over as overarching investment adviser to the ASB funds last year, looks after most other equities portfolios for the $20 billion plus bank-owned fund manager.
However, the specialist ASB ‘Positive Impact Fund’ – available in KiwiSaver and in the broader product suite – uses Vanguard and Mercer for fixed income and equities, respectively.
Last year ASB penciled-in a new global listed infrastructure asset spot for its diversified funds that has yet to be filled.
ASB appointed BlackRock as investment adviser last July, replacing the mix of in-house services (supplied by entities associated with parent, the Commonwealth Bank of Australia) and external provider, Mercer.
The move shifted a raft of asset allocation and investment strategy decisions to the Australia-based BlackRock multi-asset business.
At the time, ASB head of wealth, Adam Boyd, said: “Individual asset classes, for example Australasian equities or international bonds, will continue to be managed by a number of local and international investment firms, overseen by ASB in collaboration with BlackRock.
“We have invested in world-class expertise to manage our asset allocation and currency decisions as we see these as the most significant driver of fund performance.”
Rapidly rising prices are spooking investors across the world, bringing the classic tools of gold and inflation-linked bonds now favoured by ASB back into centre-frame.