Asset allocation help coming

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NZIER is to launch a tool that will help financial advisers with asset allocation questions.

Tuesday, April 21st 2015, 6:00AM 2 Comments

by Susan Edmunds

Aaron Drew, formerly of the NZ Super Fund, said the analysis, available on a subscription basis similar to the institute’s quarterly predictions, would be unique in that it is independent, uses a longer investment and analytical time horizon than usual, broader coverage of the NZ investment environment and NZ context and detail.

NZIER would offer an industry view of the risk and return available across the full suite of asset classes, both listed and unlisted investment opportunities at a class level available to New Zealanders.

That would include things such as equities and bonds but also foreign exchange and residential property.

Drew said it would be helpful for advisers deciding how much they wanted to deviate from strategic asset allocation benchmarks. “It could also be used as information to support bringing a new asset class into a portfolio.”

NZIER was aiming to launch it as a service in May, he said. Drew said it was too early to say what the service would cost.

As well as financial advisers, the service might appeal to institutional investors, large corporates wanting advice on the currency and government agencies dealing with offshore investors who wanted a broad snapshot of the investment environment across New Zealand.

He said there was a gap in the market for independent research.

Drew will present the offer at the upcoming Perfecting Investment Portfolios event.

Organiser Clayton Coplestone, of Heathcote Investment Partners, said there was a need for the service.

“Advisers get a bit obsessed with research reports and there’s plenty of content out there but there’s a hole when it comes to how to put it together, what goes with what.”

He said it was the first of two asset allocations that would be made available to advisers over the coming months. The second is to be provided by a global organisation that had recently completed due diligence on the New Zealand market.

Tags: Clayton Copplestone

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