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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news