The $1 billion ‘community-focused’ charitable trust, TECT, has dropped Castle Point from a roughly $60 million Australasian equities mandate.
TECT, formerly known as the Tauranga Energy Consumer Trust, has switched the Castle Point exposure to the Salt Core NZ Shares Fund, according to chief executive, Wayne Werder.
The charitable fund also uses Nikko for Australasian shares in a broadly diversified portfolio advised by Australian investment consultants, Frontier Advisors.
Perpetual Guardian purchased Castle Point in June this year after the 11-year old boutique lost a roughly $300 million institutional mandate with the BNZ KiwiSaver and retail funds operation.
As at the end of September, the three Castle Point products collectively held about $180 million – just over half the $350 million reported on March 31.
Werder said TECT also recently moved to the Resolution Capital Global Real Estate portfolio investment entity (PIE) product from a previous Australian unit trust version of the same strategy.
Resolution, which runs a listed property mandate for the ANZ KiwiSaver and retail funds arm, created the FundRock NZ-hosted wholesale PIE this August.
But TECT is also awaiting on a regulatory decision that could free up another $400 million or so to invest in its diversified portfolio.
The charity owns just over a quarter of the NZX-listed Manawa Energy (previously Trustpower) currently subject to a Contact Energy takeover bid pending Commerce Commission approval.
TECT emerged out of the 1992 NZ electricity deregulation process to manage charitable distributions from a portion of the Bay of Plenty-based Trustpower assets.
Also last week, the Consilium-owned Evidential funds management brand pushed through another milestone after cracking the $1 billion mark across its two strategies.
Evidential launched a global bond PIE managed by US factor giant, Dimensional Fund Advisors (DFA), in June 2022 and followed up this April with an international equities strategy with the same underlying manager.
The Evidential Sustainable Targeted Factor Fund hit almost $550 million at the latest count while the longer-running global bond product has amassed some $455 million.
Scott Alman, Consilium managing director, said in a release: “This rapid growth shows the demand for evidence-based investing is very strong, especially when strategies include increased sustainability considerations.”
Consilium was the first to launch DFA funds in tax-efficient wrappers for NZ investors but the US manager has since released four PIEs using the FundRock front-end – albeit covering different strategies.
Damon O’Brien, Consilium investment director, said Evidential was unlikely to roll-out new PIEs any time soon.
However, O’Brien said Consilium would look to “shape the conversation” with DFA should the manager consider the release of further PIEs.
He said initially the platform and national adviser services firm was reluctant to launch funds but “we felt we need to roll our sleeves up” to deliver tax-efficient DFA products to the NZ market.
Founded in 2012, the Christchurch-headquartered Consilium manages more than $9 billion across the Evidential funds, Synergy discretionary investment management services (DIMS) strategies and other assets held on its platform backed by FNZ technology.