JANA has won another plum NZ consulting client after securing the $250 million Southland community trust, ousting incumbent Aon.
It is understood JANA fended off another Australian asset consultant, Frontier, along with local contenders, Russell Investments and Aon, to land the advisory gig with the Community Trust South (formerly known as the Community Trust of Southland).
The Southland win also cements JANA as the most influential investment consultant in the community trust sector after the firm picked up the $1.8 billion Foundation North as a client in 2020 and Trust Waikato in 2009. Previously part of the National Australia Bank (NAB) group, JANA also advises the $6 billion plus BNZ investment and KiwiSaver funds.
As reported last week, JANA staff recently completed a management buyout of the 45 per cent of the company held by ASX-listed Insignia, which rebranded from IOOF a couple of years ago.
Insignia held the JANA stake as part of its 2021 purchase of the NAB wealth management subsidiary, MLC.
Community Trust South appointed Aon as consultant in 2016, replacing then long-time incumbent, MCA, headed by Michael Chamberlain.
Industry insiders had widely expected Community Trust South to name Frontier as investment adviser, which would’ve been a first in the sector for the Melbourne-headquartered firm.
Frontier is a relative newcomer to the NZ market, winning its first client this side of the Tasman late in 2021.
Community Trust South invests in 12 underlying fund managers including Milford, Mint, Fisher, Hunter (owned by Harbour), Hyperion, Magellan and a string of local private equity managers, according to the group’s 2022 annual report.
Over the 12 months to the end of March last year, Community Trust South saw investment returns slump to 0.4 per cent compared to almost 21 per cent in the previous annual period.
As at the end of March last year, the Invercargill-based trust reported more than $240 million under management with a full-time staff of seven headed by Jackie Flutey.