Smartshares is looking to shore-up both its active and passive investment teams and target further growth in fund-hosting.
Anna Scott, lured from Hobson Wealth to head the NZX-owned funds management business last June, said the group is recruiting for a number of investment roles across the Smartshares passive and QuayStreet active teams.
Scott said Smartshares is searching for a new head of fixed income to replace the Wellington-based Ross Hunt, who recently departed after the NZX consolidated the investment teams in Auckland.
Hunt joined Smartshares mid-2022 following a short stint as S&P Global NZ executive director. Previously, he spent more than four years as NZ director for investment data firm, IHS Markit – acquired by S&P in 2022 – and served as fixed interest portfolio manager at ANZ Investments from 2014 to 2017.
At the same time, the NZX is recruiting for two analysts and a junior portfolio manager to bolster the four-strong QuayStreet investment team of Stefan Stevanovic, Xavier Waterstone, Craig Smith and Schalk Keyter.
Smartshares formally took over the former Craigs Investment Partners fund shop, QuayStreet, last February, losing two key portfolio managers – Andrew South and Roy Cross – in the process.
The active-style manager remains separate from rest of the Smartshares/SuperLife investment team, according to Scott, albeit with some shared back-office services.
However, Smartshares chief investment officer, Stuart Millar, oversees investment governance across the NZX-owned group.
QuayStreet added about $1.6 billion to NZX funds under management as well as an ongoing product arrangement with Craigs. In May this year Smartshares struck a fund-hosting deal with Craigs to build two portfolio investment entity (PIE) vehicles designed to mirror a couple of the wealth manager’s NZ share strategies.
The business also hosts the JMI Wealth KiwiSaver scheme in a services segment poised to expand, Scott said.
She said Smartshares is readying to ramp up its ability to offer an array of investment services to the broader market including product white-labelling, feeder fund structures, institutional mandate trading or full portfolio management operations.
“The cost of maintaining a MIS [managed investment scheme] licence continues to increase, which will see further consolidation in the market,” Scott said. “So there’s a growing need for both offshore and local niche investment strategies to access fund-hosting services.”
Earlier this month the Wellington-based investment administration firm, Adminis, signalled a tilt at the fund-hosting market that to date has been largely serviced by FundRock NZ (formerly Implemented Investment Solutions).
“There’s always room for more choice,” Scott said.
As at the end of June, Smartshares (including QuayStreet) reported almost $11.9 billion under management with year-on-year growth of 11.3 per cent.
The NZX has suggested funds under management need to reach at least $15 billion before the group can harvest scale benefits.