Guardians aim for centre of excellence
The Guardians of the New Zealand Superannuation Fund have confirmed that they don’t intend to establish their own funds management business.
Tuesday, September 9th 2003, 11:25PM
Chairman David May says the Guardians intend to establish a centre of excellence for outsourced investment management.
There had been a possibility the Guardians would establish their own operations to manage assets like New Zealand shares and bonds.
May says the market is very competitive and there are plenty of options for fund managers.
May says in the future the Guardians may consider having in-house funds management capability, however if so it would likely be to provide some specialist skills.
The Guardians’ main role is in running the multi-billion dollar fund’s asset allocation and monitoring managers.
The first fund manager appointment announcements are imminent, May says.
The Guardians have finished their interviews with New Zealand fixed interest managers and have interviewed half of the managers who made the short list for New Zealand shares.
He says they are also close to appointing their passive international shares.
Because the fund is focussed on gross returns it isn’t looking at the three managers in New Zealand which have binding rulings for their funds. While May won’t give any clues away on which managers the Guardians are looking at it is likely to include international managers such as Vanguard who have been active in the New Zealand market place.
The Guardians are looking to appoint 17 managers initially. These will include:
- NZ shares – 4 managers
- International shares - 3 large and medium cap managers, 3 North American and European small caps, 1 emerging markets
- NZ fixed interest - 1 passive Government Bonds, 1 active NZ credit, 1 cash
- International fixed interest – 1 passive global sovereign bonds, 2 active global credit managers
- The managers required for property and illiquid assets are yet to be determined.
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