It is understood Nikko Asset Management NZ knocked out incumbent Fisher Funds in its recent $100 million plus mandate win from health insurer, nib.
The nib mandate took Nikko NZ’s total asset under management over $4.6 billion, compared to $3.9 billion as at the end of last year, the firm said in a statement.
Australian-headquartered insurer, nib, expanded into New Zealand in 2012 after purchasing the Tower health insurance arm for $102 million. However, Tower’s fund management business continued to manage the nib investment pool.
In February 2013, Fisher Funds bought the Tower Investments business, including its KiwiSaver scheme and institutional funds management arm for just under $80 million.
As part of the deal, Fisher continued to manage the Tower insurance investment money as well as the nib funds.
In May 2013, Tower hived off most of its life business to Fidelity Life with Fisher retaining the investment management role for those insurance funds.
Nikko picked up the nib contract “following a competitive review process”, the press statement said.
James Wesley, Nikko NZ head of distribution, said the fund manager had already implemented the nib mandate.
Wesley said the mandate followed a “typical conservative insurance company” investment strategy, with a heavy emphasis on fixed income.
According to the nib NZ financial statements for the 12 months to June 30 this year, the group reported investment expenses of about $400,000 on assets of just under $95 million. Over the period, nib recorded a gain of almost $1.9 million on its financial assets and net interest income of $4.8 million.
As at June 30 this year, Fisher Funds had total assets under management of about $6.6 billion, making it the fifth biggest NZ-based manager, FundSource figures show, followed by Nikko with roughly $4.5 billion.