A key architect of the compulsory retirement savings system lauds its many achievements, stretching from the national economy to the individual. Where it’s double faulting is in serving members – and it needs to be addressed promptly.
With performance and diversification driving demand, these funds are expected to experience four-fold global growth over the next decade to nearly $AU65 trillion.
AMP chooses boutique Kiwi firm for big equities mandate
(Pictured: Paul Harrison)
by David Chaplin
Boutique New Zealand manager Salt Funds Management has won perhaps the largest New Zealand equities mandate on record, scooping up NZ$690 million (A$670 million) from AMP Capital NZ, doubling the small firm’s FUM in the process.
Paul Harrison, Salt director, said the AMP mandate provided scale for the firm, whose only other client is former employer, BT Westpac. “This provides further credibility for us,” he said. Salt still had capacity for further NZ equities mandates with a couple of potential wholesale deals lined up already, according to Harrison.
Following the deal, Salt, which was spun out of BT Funds Management NZ in 2013, will have funds under management of about $1.4 billion.
In a statement, George Carter, AMP Capital head of distribution, said: “Being a core manager, Salt is an extremely good fit for AMP Capital and our clients. Salt has a proven investment team with extensive experience in managing the types of portfolios we offered for tender as well as having a truly integrated approach to responsible investing.”
AMP Capital has been searching for a replacement NZ shares manager after sacking its in-house local shares team, headed by Guy Eliffe, last December.
The moved followed months of staff instability at the marquee funds management house with senior money managers John Phipps, Douglas Lau and John Middleton exiting AMP Capital over the last year or so.
Just before dissolving its in-house NZ equities team, AMP managed about $1 billion in local shares.
However, in November 2014 AMP lost a $260 million local equities New Zealand Superannuation Fund (NZS) mandate, prompting the group to review its operations.
As at February year, AMP Capital reported collective funds under management of about $690 million in its three main NZ equity products: the NZ Shares Fund; the Strategic NZ Shares Fund, and; the Responsible Investment Leaders NZ Shares Fund.
While it is understood AMP lost a handful of other NZ equity mandates during the upheaval, Harrison said Salt would pick up the full $690 million by March 31 – the date set for transition earlier this year.
In the interim AMP Capital’s Australian equities operation, headed by Michael Price, has been managing the New Zealand shares portfolio.
David Chaplin is publisher of Investment News New Zealand.
