Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Appointment Of Four Investment Managers

For Immediate Release

13 July 2004

NZ SUPERANNUATION FUND ANNOUNCES APPOINTMENT OF FOUR INVESTMENT MANAGERS

The Board of the Guardians of New Zealand Superannuation today announced the appointment of four new investment managers. This brings to 15 the number of investment managers retained by the Guardians since management of the Fund's assets commenced on 30 September 2003.

Chief Executive, Paul Costello, said that this round of appointments has assisted the Guardians to meet the commitment of being fully invested by 30 June 2004. "We have delivered on our strategy of gradually moving from a position of holding $2.4 billion in cash on 30 September 2003 to investing almost $4 billion across a range of markets by 30 June 2004," he said.

Alliance Capital Management LP, based in New York, has been appointed to manage a global equity growth portfolio. The initial allocation to Alliance is NZ$251 million. Alliance uses a team of analysts located around the world to research stocks with a focus on larger companies. The portfolio targets between 100-150 stocks.

Alliance replaces RCM Capital Management. As a result of organisational changes within that firm announced earlier in the year, the Board has decided to withdraw funds from RCM until the effect of those changes can be observed.

Goldman Sachs Asset Management, also based in New York, has been appointed to manage a US small-cap value mandate. Its initial allocation is NZ$39 million and its appointment complements that of Thompson Siegel & Walmsley, which was funded in May 2004 and which also manages a US small-cap value mandate.

Grantham Mayo & Van Otterloo (GMO), based in Boston, has been appointed to manage a portfolio of non-US small cap securities for the Guardians. Its initial allocation is NZ$118 million and its appointment complements that of AXA Rosenberg, appointed in May 2004 with a mandate to invest in the same sector of the market.

WestAM Asset Management, based in London, has been appointed to manage an emerging markets mandate. Approximately 3% of the Fund's assets are targeted to emerging markets and the initial allocation to WestAM is NZ$79 million.

-Ends-

About New Zealand Superannuation Fund:

The New Zealand Superannuation Fund, which commenced investing at the end of September 2003, is designed to partially provide for the future cost of New Zealand superannuation. An ageing population means the cost of providing New Zealand superannuation is expected to double over the next 50 years. To prepare for this, the Government is allocating on average $2.2 billion a year to the Fund over the next 20 years while the cost of superannuation is relatively low. In the meantime, the Fund will invest the money on a prudent but commercial basis.

As the cost of superannuation escalates, the Government will progressively draw on the Fund to help smooth the impact on its finances. On current Treasury modeling, contributions will cease in 2025 and from 2026 the Government will start to draw the equivalent of between 15-20% of the annual cost of superannuation. When income tax payments are also taken into account, the net fiscal impact of the Fund is expected to exceed 30% of the cost of New Zealand superannuation for several decades.

The Fund, which is governed by a separate Crown entity, will continue to exist, and continue increasing in size due to compounding investment returns, indefinitely. The Fund is expected to grow to around $100 billion by 2020.

http://www.nzsuperfund.co.nz

For further information on Alliance Capital Management LP, Goldman Sachs Asset Management and Grantham Mayo & Van Otterloo, please visit

http://www.alliancecapital.com/

http://www.gs.com/client_services/asset_management/index.html

http://www.gmo.com/

http://www.westam.com/

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news