The Otago Community Trust has opted to retain an implemented investment approach following a review… but with a different asset consultant in charge.
It is understood that the $315 million charitable fund has switched consultancy allegiances to Mercer in place of incumbent Russell Investments.
Mercer also advises the $660 million plus Rātā Foundation (previously known as the Canterbury Community Trust) while Otago was the sole remaining Russell client in the sector.
Swapping one implemented product for another is much simpler than creating a new multi-manager portfolio from scratch under the advice of another consultant.
The Otago trust has used Russell since at least 2017 with the fund reporting a return of 0.3 per cent for the financial year ending March 31, 2022.
Late in 2021 the fund also embarked on a significant tilt to carbon-lite exposure for its international equities portfolio.
“As a Trust, we are committed to enabling a low-emissions future and in starting this journey in December 2021 we moved half of our global equities investments into a sustainable shares fund, a fund which has a decarbonisation strategy and improved Environmental, Social, and Governance (ESG) investment profile,” the Otago 2022 annual report says.
In February the neighbouring Community Trust South also hired a new asset consultant, naming the Australian outfit, JANA, to replace Aon. JANA is now the most influential investment adviser in the NZ community trust world with gigs at the $1.8 billion Foundation North and Trust Waikato.
The latest asset consultant move coincides, too, with a management change atop the Otago community trust after long-time chief executive, Barbara Bridger, resigned earlier in the year.
Bridger took over as chief of the $470 million Central Lakes Trust this month.
Meanwhile, the Otago fund advertised for a new chief last month via recruitment firm, Sheffield, in a wide-ranging role that includes working “alongside the Trust’s contracted Investment Managers with a view to ensuring investment activities maintain the fund in perpetuity; monitor investment performance and compliance with Trust policies”.