• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • Subscribe
  • Twitter
  • RSS Feed

Investment News NZ

Investment News provides financial advisers news stories from the financial industry in New Zealand. Subscribe to our free weekly newsletter.

  • Home
  • News
  • Kiwisaver
  • Subscribe
  • About
  • Advertise
  • Contact
You are here: Home / Investment News / NZ Super drops $460m mandate, picks up three

NZ Super drops $460m mandate, picks up three

February 23, 2020

Matt Whineray: NZ Super Fund CEO

The almost $50 billion NZ Superannuation Fund (NZS) has added three new external mandates and cut one long-time manager from its roster over the last eight months.

According to information updated in the wake of last week’s annual results, the NZS recently dropped LSV Asset Management, from a $460 million emerging markets equities mandate – a gig first awarded to the Chicago-based value manager in 2005.

As well as cutting LSV, the fund hired Robeco, Hillwood and The Carlyle Group to manage assets across multi-factor equities, US real estate and diversified insurance strategies, respectively.

The Robeco appointment comes on the back of a major expansion of the NZS equity factor exposure first mooted a couple of years ago. Last year the NZS doubled its ‘smart beta’ exposure, adding a collective $2 billion to existing multi-factor mandates held by AQR and Northern Trust.

Robeco has some local clients – including fixed income mandates with Mercer and the Accident Compensation Corporation (ACC) fund – but the NZS role probably marks its first equity factor win in NZ. The manager runs a multi-factor equities ‘custom index’ for the NZS.

Founded in Rotterdam in 1929, the Robeco opened a Sydney office in 2012 to expand its reach into the Australasian market.

Known for its quant-based investment style, the firm – now owned by Japanese Orix Corporation – also has a strong environmental, social and governance (ESG) bent. As at the end of last September, Robeco had over US$320 billion under management including US$116 in quant strategies and almost US$210 billion under ESG-integrated funds.

Meanwhile, NZS has invested in the Texas-headquartered Hillwood via the underlying US Industrial Club V-North American real estate fund.

Hillwood was launched in 1988 by Ross Perot Jr, son of one-time US presidential hopeful, Ross Perot. A successful businessman, Perot (senior) stood as an independent in the 1992 US presidential elections, garnering the highest ever share of votes (19 per cent) for a candidate not linked to one of the two major parties.

Another investment firm with links to US political history (one of its founders worked in the Carter administration), The Carlyle Group manages “diversified life and non-life insurance strategies” for the NZS. The Carlyle Group has sparked some controversy in the past through its links with the US defence industry.

Currently, the Carlyle Group has investments in 17 financial services firms globally. The group, which boasts about US$225 billion under management, has also been touted as a potential buyer of the AMP NZ business.

Last week, NZS chief, Matt Whineray, said the fund underperformed its passive reference portfolio over the 2019 calendar year by about 1.6 per cent – mainly due to valuation timing differences of its illiquid and liquid assets during a bumper year for markets.

“The net effect is that during periods when liquid equity markets rally strongly, as was the case during 2019, the performance of those infrequently valued assets tends to lag the reference portfolio proxy (of listed equities and bonds),” the NZS release says.

Over 2019, the NZS returned more than 21 per cent, after costs but before tax, with the fund’s large passive exposure (representing about two-thirds of the $47 billion plus assets under management) up almost 23 per cent.

However, Whineray warned to “expect lower returns” ahead as the NZS dialed-back risk exposure in the short term.

“Looking further ahead we remain well positioned to exploit emerging opportunities and are exploring a range of potential investments in New Zealand and abroad, particularly in infrastructure and real estate,” he said.

Now flickering around the $48 billion mark, NZS returned 10.32 from inception until the end of 2019 (again, post costs and pre-tax) – equating to almost $9 billion above the reference portfolio.

Twitter0
LinkedIn0
Google+0
Facebook0

Read More » Investment News

Recent articles

  • On the industry play-list: four chart-topping regulations for 2021 January 15, 2021
  • ASB investment veteran among five Jarden hires; van Schaardenberg exits Findex January 10, 2021
  • Wholesale disclosure loophole for $750k under question January 10, 2021
  • Bear marks time for last dance as bubble-pop music sounds January 10, 2021
  • UK competition regulator gaffe keeps GBST in play for FNZ January 10, 2021
  • Russell positive on climate change but negative screening could be a no-no January 10, 2021
  • How the world’s biggest funds coped in 2020; NZ Super tops five-year figures January 10, 2021
  • Managers tipped to double tech spend by 2030 January 10, 2021
  • S&P results highlight nine-year run for NZX; value peeks through as 2020 ends January 10, 2021

Primary Sidebar

WEEKLY NEWSLETTER

Sign up here to receive our weekly newsletter.
Learn More »

Most Recent Investment News

David-Boyle

On the industry play-list: four chart-topping regulations for 2021

January 15, 2021

ASB investment veteran among five Jarden hires; van Schaardenberg exits Findex

January 10, 2021

Wholesale disclosure loophole for $750k under question

January 10, 2021

Bear marks time for last dance as bubble-pop music sounds

January 10, 2021

UK competition regulator gaffe keeps GBST in play for FNZ

January 10, 2021

Search by Keyword

Investment News

  • On the industry play-list: four chart-topping regulations for 2021 January 15, 2021
  • ASB investment veteran among five Jarden hires; van Schaardenberg exits Findex January 10, 2021
  • Wholesale disclosure loophole for $750k under question January 10, 2021
  • Bear marks time for last dance as bubble-pop music sounds January 10, 2021
  • UK competition regulator gaffe keeps GBST in play for FNZ January 10, 2021
  • Russell positive on climate change but negative screening could be a no-no January 10, 2021
  • How the world’s biggest funds coped in 2020; NZ Super tops five-year figures January 10, 2021
  • Managers tipped to double tech spend by 2030 January 10, 2021
  • S&P results highlight nine-year run for NZX; value peeks through as 2020 ends January 10, 2021
  • Why 2021 shapes as a big year for governance activism January 10, 2021

Investment News Archive

Most Popular Articles

  • Westpac NZ flags retail advice sale to Forsyth Barr posted on October 19, 2020
  • The horror year in technicolour: free KiwiSaver 13 report released posted on September 30, 2020
  • Flint set to spark platform competition posted on August 17, 2020
  • NZ share-trading splurge could trigger tax alarms… posted on October 5, 2020
  • Four to the core: Smartshares to expand, rearrange and reprice ETFs posted on June 22, 2020
  • Kitset KiwiSaver scheme set to unwrap in spring posted on April 27, 2020
  • Funds eye bargains, self-shoppers hoard cash, KiwiSavers turn conservative posted on March 15, 2020
  • AMP Capital NZ chief quits amid equities exodus offshore posted on August 28, 2020

Sponosored Content

David-Boyle

On the industry play-list: four chart-topping regulations for 2021

David-Boyle

Charge of the lite (advice) brigade

Nathan Field

Pandemic Baby Boom a Bust

Star-date 2020: it’s inflation Jim but not as we know it

Quick-links to Popular News

  • FAP Compliance
  • Coronavirus
  • New Appointments
  • Financial Markets Authority (FMA)
  • Kiwisaver
  • Climate Change
  • Crypto Currency
  • Blockchain
  • Insurance

Secondary Sidebar

Recent News

  • On the industry play-list: four chart-topping regulations for 2021 January 15, 2021
  • ASB investment veteran among five Jarden hires; van Schaardenberg exits Findex January 10, 2021
  • Wholesale disclosure loophole for $750k under question January 10, 2021
  • Bear marks time for last dance as bubble-pop music sounds January 10, 2021
  • UK competition regulator gaffe keeps GBST in play for FNZ January 10, 2021
  • Russell positive on climate change but negative screening could be a no-no January 10, 2021
  • How the world’s biggest funds coped in 2020; NZ Super tops five-year figures January 10, 2021
  • Managers tipped to double tech spend by 2030 January 10, 2021
  • S&P results highlight nine-year run for NZX; value peeks through as 2020 ends January 10, 2021
  • Why 2021 shapes as a big year for governance activism January 10, 2021

Footer

Copyright ©2020 InvestmentNews.co.nz — All Rights Reserved ·— Terms & Conditions