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

 


Govt savings bodies close to saturation point with NZ shares

Govt savings bodies close to saturation point with NZX shares

Jan.18 (BusinessDesk) - Government pension and savings funds collectively own more than 5 percent of 47 companies listed on the NZX and more than 10 percent of 17 companies.

The analysis of combined market power of Accident Compensation Compensation, New Zealand Super Fund, Government Superfund and National Provident Fund is disclosed in an annual portfolio report by Treasury's Crown Ownership Monitoring unit.

The level was not excessive but there was limited scope for more investment, given the size of the NZX, the report said.

"This means CFIs would need to look at private market opportunities in which to invest or move to a more passive approach in investing in New Zealand equities."

The review also discloses $199.2 million of expenses, including staff costs, to manage the Crown financial institutions' (CFIs') funds in 2011/12, $110.7 million of which for the Super Fund.

The analysis found they had $3.5 billion worth of investments as at June 29, 2012, equal to 6.3 percent of the NZX's capitalisation and 9.6 percent of its freely floating capital.

"Where the combined holding across the CFI portfolio totals more than 10 percent there is potential for CFIs to represent a significant percentage of voting rights should they each choose to vote in line with each other," the report said.

The reality is that they employ external managers, which limits their ability to work together.

CFI's collectively own 15.6 percent of Skellerup, 14.4 percent of Auckland International Airport, 13.9 percent of NPT, 13.5 percent of Restaurant Brands and 13.2 percent of Ebos.

Kathmandu, Fisher & Paykel Appliances, Kiwi Income Property Trust, AMP NZ Office, Diligent, Infratil, DNZ Property, SKY City Entertainment, Argosy, Nuplex, Pumpkin Patch and NZX itself are also on the list of combined holdings in excess of 10 percent.

The aggregate $3.5 billion worth of shares in NZX-listed companies as at June 29, 2012 is up 30 percent from the level as at November 30, 2009.

The ACC, which managed investments in house, was the most efficient of the CFIs in terms of investment management costs.

"It is encouraging to see that over the past two years the active investment strategies employed by the CFI's have in aggregate added value after fees to the Crown's CFI portfolio," the report said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news