Nikko Asset Management has added an underlying manager in its global equities fund-of-funds following a ‘hard close’ of another strategy and a subsequent shake-up of that firm’s investment team.
Stuart Williams, Nikko NZ chief, said a JPMorgan-run ‘high conviction’ fund would join the group’s global shares multi-manager line-up after some recent changes in another manager on the panel, Royal London Asset Management.
Williams said the allocation to the JPMorgan ‘select’ international equities strategy would initially come via a pooled vehicle with a likely shift to a discrete mandate after strong demand for the Nikko fund. Royal London continues to manage a portion of the Nikko global equities fund-of-funds money, however.
“We always focus on getting the most efficient investment structure for NZ investors,” he said.
JPMorgan is also the underlying manager for the Nikko alternatives exposure in some of its diversified funds.
The latest Melville Jessup Weaver (MJW) investment survey shows the Nikko global shares fund-of-funds held almost $470 million at the end of March while topping the category for returns over all time-periods covered bar the three-year.
Investor interest in the strategy was rising, too, Williams said.
According to disclosure documents, the multi-manager international shares fund taps into a strategy overseen by Australian firm Yarra Capital Management that also uses the Edinburgh-based Nikko global equity fund and the Californian firm, WCM.
The Nikko global business owns 20 per cent of Yarra.
Late in 2023 Royal London ‘hard-closed’ its Global Equity Select fund but the manager also saw a shock departure of a key investment team earlier this year.
Peter Rutter quit as Royal London head of equities in April taking along four other top portfolio managers from the firm to launch a new boutique under the aegis of ASX-listed multi-affiliate business, Pinnacle Investment Management.
Williams said Alan Clarke, the recently appointed Nikko NZ portfolio manager diversified funds and external managers, was visiting current and prospective third-party investment firms including the ex Royal London team.
Clarke joined Nikko from ANZ Investments last August, reuniting with former colleague, Williams.
It is understood Nikko, along with Harbour Asset Management, have been among the main beneficiaries of the surprise ANZ exit from the wholesale market announced in May. ANZ told wholesale clients to seek alternative solutions by the end of August with most of the $3 billion plus assets understood to be in cash and fixed income strategies.
Meanwhile, Nikko has hired a business development manager to drive growth in the adviser market for its newly restructured KiwiSaver scheme – now rebranded under the GoalsGetter label.
Along with the rename, Nikko established the GoalsGetter as a multi-manager scheme with options now available from third-party firms including Milford, Generate, Pathfinder, Harbour and Salt.
George Allbury, joins Nikko from the AMP-owned AdviceFirst advisory network to help grow the GoalsGetter scheme in the financial advice provider market..
Allbury joined AdviceFirst as an adviser in 2018 after joining the industry in 2015 through the Aurora group.
Sam Bryden, Nikko head of distribution, said in a release: “As KiwiSaver balances grow and client requirements become more sophisticated, advisers have recognised that multi-manager solutions will become more and more important to meet their clients’ expectations around diversification and risk mitigation.”
Nikko had achieved other recruitment successes over the last couple of years through its intern scheme, Williams said.
He said a recent legal intern had just been appointed to a full-time job at the Financial Markets Authority with several others also finding employment in the industry after serving a stint with Nikko.
“We’re looking for new interns now,” Williams said. “And we’re deliberately trying to find candidates from diverse backgrounds – not necessarily finance graduates.”