Shaw and Partners NZ has flagged plans to step-up growth in implemented consulting and fund-hosting services with two recent hires due on deck this week.
As reported last October, Brian Kearney left Mercer NZ ahead of the shift to Shaw and Partners as investment director while Craig Stanford was named in the newly created chief executive role for one of the group’s sister-brands, Clarity Funds, in December.
Previously known as JMI Wealth, the company took on the new brand a couple of months after the well-established Australian wealth management business, Shaw and Partners, bought a 75 per cent share in Investment Services Group (ISG). Shaw and Partners Australia is ultimately owned by Swiss private bank, EFG International.
ISG is the parent entity of Shaw and Partners NZ as well as Clarity, Devon Funds, Tahito and Select Wealth.
Both Standford and Kearney officially report for duties this week with the latter to work alongside Shaw and Partners NZ veterans Alan Lee and Andrew Kelleher to help expand the firm’s outsourced chief investment officer (OCIO) service “to meet growing demand from New Zealand institutions and high-net-worth investors seeking professional oversight of their investment programmes”, according to a release.
OCIO, or implemented consulting, has traditionally been the preserve of Mercer and Russell Investments in NZ but other players including the Australia-based JANA and local start-up, Aurellan, are upping the competitive temperature.
Meanwhile, Stanford – most recently Asia-Pacific business development director for France-headquartered systematic investment house, Capital Fund Management – has been charged with growing the Clarity fund-hosting business in addition to its in-house local investment capability (including the Māori-values-focused manager, Tahito).
Last year, Clarity also took over the third-party fund distribution business founded by Matthew Mimms, The Investment Store.
Clarity has “experienced exceptional growth in its fund hosting facilities for third-party international managers”, the statement says. The brand currently provides hosting services to several offshore funds managed by the likes of MFS, Capital Group, Daintree and Nanuk.
Fund-hosting, as with OCIO, has competition heat up of late in a market still dominated by FundRock NZ (formerly Implemented Investment Solutions). In addition to Clarity, investment administration specialist, Adminis, recently moved into wholesale and retail fund-hosting while several local managers front global strategies on a more ad hoc basis.
Elsewhere last week, Russell Investments has boosted assets under management by almost A$2 billion following a rare acquisition across the Tasman.
Under the deal, Russell Australia will bolt-on the Zurich Investment Management (ZIM) “range of multi-asset, sector and single-strategy funds”, a statement says.
“Upon completion, ZIM’s distribution, client-facing and retail investment specialists will join Russell Investments Australia,” the release says.
Yile Chen replaced the long-serving Matthew Drennan as Zurich Australian chief investment officer last year.
Like Russell, ZIM operates a multi-manager model with about 15 third-party investments on a panel including Allspring, American Century, Antipodes, Epoch, Lazard, Schroders and Tyndall.
The release says there will be “no immediate changes” to the ZIM funds post-purchase.
Zurich is an insurance specialist but it has a long history in the Australian funds and advisory distribution market.
Justin Delaney, Zurich Australia and NZ chief, said in the statement: “The decision to divest ZIM reflects where Zurich is heading as an organisation, allowing us to continue to focus on our core operations in the Australian insurance market. Russell Investments brings global scale, deep investment capabilities and a strong local presence, making it an ideal partner for our advisers, investors, and employees.”
NZ would not be affected by the purchase, a Russell spokesperson said.
Earlier this year the US-headquartered Russell also tapped alternative investment giant, Apollo, in a US$1.2 billion plus refinancing deal.
Under the arrangement, Russell will use the Apollo loan to repay “the firm’s prior group of lenders, and extends the maturity of the firm’s debt for seven years”, according to a statement.
Zach Buchwald, Russell global chief, said in the release: “This strategic financing reflects confidence in Russell Investments’ industry-leading business performance and our continued growth trajectory. Partnering with Apollo enhances our flexibility to continue to invest in our business, our people, and our clients.”
Russell reported US$370 billion under management globally as at September 30 last year. The business is majority-owned by TA Associates with Reverence Capital Partners also holding a significant minority stake.