Milford Asset Management is the ‘high-profile’ funds management firm subject to a Financial Markets Authority (FMA) investigation, the company confirmed today.
In a statement, Milford said it is “co-operating fully” with the FMA to clarify the actions of “an individual trader employed by the firm and certain specific trades”.
It is understood the investigation is not centred on month-end fluffing of returns or performance-fee related matters. The trader in questions remains working for Milford.
The Auckland-based firm also recently hired a ‘central dealer’ to co-ordinate the trades of all of its portfolio managers.
Milford manages over $3 billion on behalf of retail, KiwiSaver and institutional investors, including $253 million for the New Zealand Superannuation Fund (NZS).
A spokesperson for NZS said the “Fund has not been contacted by the FMA in regards to this matter”.
“We will be watching the outcome of the investigation closely,” the NZS spokesperson said.
NZS appointed Milford to an active New Zealand equities in 2009.
Late last week rumours emerged that the regulator was investigating a “high-profile” New Zealand funds management firm for alleged market manipulation.
“The investigation does not have any implications for client funds and has no impact on the day-to-day operations of Milford,” the statement said.
