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: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news