NZ Super Fund suspends Milford's mandate amid FMA probe
NZ Super Fund suspends Milford's mandate as FMA probe continues
By Suze Metherell
April 2
(BusinessDesk) - The Guardians of New Zealand
Superannuation, tasked with managing the New Zealand
Superannuation Fund, has suspended its investment mandate
with Milford Asset Management while Milford is investigated
by the Financial Markets Authority.
The sovereign
fund, which has some $28.98 billion under management, will
manage the funds internally until the financial markets'
watchdog finishes its probe into the fund manager, it said
in a statement. Milford has had a New Zealand active equity
mandate from the Guardians since 2009, valued at $281
million.
In February, Auckland-based Milford revealed
it was being investigated by the FMA over certain trades by
one of the firm’s traders. Last month the FMA denied media
speculation that the investigation had since been expanded
in scope although it hasn't revealed how many people were
the subject of the investigation.
In March the FMA
said it was seeking market information "as part of our
ongoing investigation into trading activity at Milford" and
that included "requests for information from some
brokers".
At the time of announcing the investigation, Milford said the probe would not have any implications for client funds and there was no impact on the day-to-day operations. In a statement today it said it was surprised by the decision of the Super Fund to suspend the mandate, reiterating the FMA's own statement that the investigation "does not raise concerns about the security or safety of Milford client funds or assets".
"We have not
commented on the specifics of the investigation because we
respect the due process of the FMA investigation and are
bound by a confidentiality order imposed by the FMA,”
Milford managing director Anthony Quirk said. "We will
continue to refrain from any comment that could be seen as
undermining the investigation process or pre-empting the
outcome. In the meantime we look forward to completion of
the investigation and release of any findings."
The
FMA said it expects to conclude the final investigation
steps in the next few weeks and hopes to make a public
announcement at that time or shortly thereafter.
(BusinessDesk)