Harbour picks up mandate from AMP

[UPDATED] Harbour Asset Management has picked up an $180 million fixed income mandate for a range of Westpac-distributed funds.

Tuesday, December 22nd 2015, 9:00AM

It has replaced AMP Capital.

Harbour already works with Westpac/BT managing Australasian shares alongside Devon and Salt Funds Management.

Mark Brown, Harbour's director of fixed income, said: "The mandate design has enough flexibility to give us scope to target higher alpha than traditional New Zealand fixed interest fund designs."

Matthew Goldsack, of BT, said: "Our investment model at BTNZ has developed over recent years into a multi asset specialist with multi-manager capabilities across all asset categories. One exception to this is for domestic fixed interest and cash asset classes where we have tended to manage our core New Zealand fixed interest and cash assets internally, but will also buy in external expertise for certain strategies we offer. We rate Harbour, both in terms of their fixed interest and equity capabilities, very highly."

He said the transition to Harbour would affect multi-manager offerings distributed through Westpac financial advisers, excluding KiwiSaver products.

The move was completed in September. Goldsack said BT tended to favour asset managers with boutique structures and sustainable long-term business models. "Our sub-manager relationships with Devon, Salt and Harbour are examples of this."

He said Harbour's fixed interest offering was one of the most capable in New Zealand, with a strong team and deep experience in capital markets. "We consider the outlook for fixed interest markets to be challenging with divergence in monetary policy globally and increased volatility warranting a nimble and dynamic approach within this sector. The mandate we have appointed Harbour Asset Management to will help us in achieving this objective."

Tags: AMP Harbour Asset Management Westpac