• 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 loses direct head, wins performance kudos

NZ super loses direct head, wins performance kudos

June 29, 2015

Michael Gleissner: departing NZ Super head of direct NZ investments
Michael Gleissner: departing NZ Super head of direct NZ investments

The New Zealand Superannuation Fund (NZS) is searching for a new head of NZ direct investments following the resignation of incumbent, Michael Gleissner, last week.

Gleissner, who joined NZS two years ago, “is leaving to focus on family commitments and consulting activities”, a spokesperson for the almost $30 billion fund said.

Until a replacement is found, Matt Whineray, NZS chief investment officer, would assume Gleissner’s responsibilities, the spokesperson said.

The NZ Direct team manages NZS investments in Kaingaroa Timberlands, rural land, Datacom and Metlifecare.

Earlier this month, foundation executive, Tim Mitchell, finished up at NZS after 12 years service at the fund. Mitchell, who ended his NZS career in a strategic advice role, will not be replaced.

Last week the NZS also celebrated earning the accolade of world’s best-performing sovereign wealth fund (SWF) by JP Morgan Asset Management. In a just-published research piece, JP Morgan reported NZS returned of a tad over 17 per cent annually in the five years to June this year – almost 5 per cent more than the second-placed US$344 billion Government of Singapore Investment Corp (GIC).

The US$180 billion Temasek, another Singapore-based SWF, returned 11 per cent annually over the same period while the A$117 billion Australian Future Fund rounded out the double-digit performers with a 10.4 per cent annual return during the five-year timeframe.

In the report titled ‘Taking the long view’, JP Morgan attributed much of the outperformance of eight top-performing SWFs to their exposures to alternative, illiquid assets.

“The median allocation to alternatives among the eight funds amounted to 18.5% of the total portfolio,” the JP Morgan study says. “Returns for the funds with above-median allocations beat the conventional 60/40 benchmark allocation return by 551 basis points and beat the returns of the below-median funds by 316 basis points annually.

“The top four performers among the eight SWFs, with alternatives allocations ranging from 16% to more than 35% with a mean of 26%, beat the benchmark by an average of 671 basis points.”

However, the report notes SWF appetite for alternative assets can squeeze returns as funds flow increases. For example, from 2010 to 2014 SWF investments in direct real estate “expanded seven-fold”, JP Morgan says.

“The flood of investment has compressed the yield spread between risk-free assets and prime properties to the point where the income from prime properties in some markets has fallen below that from investment-grade corporate bonds,” the report says.

The study says SWFs are well-placed to pursue a range of alternative asset strategies including infrastructure, shipping and private debt.

In particular, post GFC re-regulation including Basel III bank capital requirements could open up new investment avenues for patient investors such as SWFs.

“To meet this requirement, we expect some [banks] to reduce their loan books, creating distortions and opportunities in the marketplace, especially in Europe where bank lending predominates,” the report says.

In February, NZS revealed it was embroiled in a legal dispute with the Portuguese government to recover a US$200 million loan to Banco Espirito Santo (BES) made via a Goldman Sachs-engineered investment vehicle, Oak Capital.

The case, which may take years to untangle, was due to enter jurisdiction hearings in UK courts later in July, the NZS spokesperson said.

According to a Wall St Journal (WSJ) article published last month, the Portuguese central bank has imposed fines of up to €4 million on 15 former BES employees for “selling the debt of its parent when it was already known the lender was in trouble”.

“Bank of Portugal said it is also investigating other issues surrounding Banco Espírito Santo’s collapse, including what Governor Carlos Costa called “a fraudulent funding scheme between the companies belonging to the group” involving offshore vehicles,” the WSJ story says.

Last week NZS promoted, Cristina Billet, to the newly-created position of head of legal. Named public sector lawyer of the year in 2014 by the Corporate Lawyers Association of New Zealand (CLANZ), Billet has been with the NZS for six years.

Print Friendly, PDF & Email
Twitter0
LinkedIn0
Google+0
Facebook0

Read More » Investment News

Recent articles

  • What do ‘Kiwi’ experts see for 2021? January 28, 2021
  • KiwiWRAP lays down investment backing tracks January 24, 2021
  • Government to set eyes on PIEs as tax hike bites January 24, 2021
  • Venture fund hires short-term chief, refits board January 24, 2021
  • MJW finds KiwiSaver manager choice matters more at riskier end… January 24, 2021
  • … as weight gain spread among mid-level schemes January 24, 2021
  • NZX admin unit confirms old client for new platform January 24, 2021
  • NZ Super adjusts dials on reference portfolio as risk-return gauge edges up January 24, 2021
  • State Street wins Perpetual custody job January 24, 2021
Finished reading? Why not subscribe? To receive a weekly email enter your email address here.

Primary Sidebar

WEEKLY NEWSLETTER

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

Most Recent Investment News

What do ‘Kiwi’ experts see for 2021?

January 28, 2021

KiwiWRAP lays down investment backing tracks

January 24, 2021

Government to set eyes on PIEs as tax hike bites

January 24, 2021

Venture fund hires short-term chief, refits board

January 24, 2021

MJW finds KiwiSaver manager choice matters more at riskier end…

January 24, 2021

Search by Keyword

Investment News

  • What do ‘Kiwi’ experts see for 2021? January 28, 2021
  • KiwiWRAP lays down investment backing tracks January 24, 2021
  • Government to set eyes on PIEs as tax hike bites January 24, 2021
  • Venture fund hires short-term chief, refits board January 24, 2021
  • MJW finds KiwiSaver manager choice matters more at riskier end… January 24, 2021
  • … as weight gain spread among mid-level schemes January 24, 2021
  • NZX admin unit confirms old client for new platform January 24, 2021
  • NZ Super adjusts dials on reference portfolio as risk-return gauge edges up January 24, 2021
  • State Street wins Perpetual custody job January 24, 2021
  • New future-facing FAP compliance firm fronts up January 24, 2021

Investment News Archive

Most Popular Articles

  • NZ share-trading splurge could trigger tax alarms… posted on October 5, 2020
  • 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
  • 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

What do ‘Kiwi’ experts see for 2021?

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

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

  • What do ‘Kiwi’ experts see for 2021? January 28, 2021
  • KiwiWRAP lays down investment backing tracks January 24, 2021
  • Government to set eyes on PIEs as tax hike bites January 24, 2021
  • Venture fund hires short-term chief, refits board January 24, 2021
  • MJW finds KiwiSaver manager choice matters more at riskier end… January 24, 2021
  • … as weight gain spread among mid-level schemes January 24, 2021
  • NZX admin unit confirms old client for new platform January 24, 2021
  • NZ Super adjusts dials on reference portfolio as risk-return gauge edges up January 24, 2021
  • State Street wins Perpetual custody job January 24, 2021
  • New future-facing FAP compliance firm fronts up January 24, 2021

Footer

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