Since the emergence of “Modern Portfolio Theory” and the “Capital Asset Pricing Model” in the late 1960s, institutional investors have taken a quantitatively driven approach to portfolio construction, looking to create portfolio diversification and obtain better risk-adjusted returns by balancing their asset-class exposures. This journey has seen several important advancements in thinking about how to optimally achieve desired results.
Funds that want to take the total portfolio approach first need to get the total portfolio view. To do that they not only need data – and lots of it – but a rock-solid understanding of exactly how they’re going to use it.
Cambridge out, JANA in for NZ trust
by David Chaplin
The NZ$1.5 billion (A$1.4 billion) Foundation North has replaced Cambridge Associates with the Australian firm JANA as investment consultants. The move ends a 10-year relationship between the big community trust and Cambridge.
In a release last week (December 8), the Auckland-based trust, headed by Peter Tynan, said the trustees confirmed JANA on November 30 this year. Cambridge has held the role with Foundation North since 2010, replacing Russell Investments at the time.
“JANA is a well-resourced Australia-based investment adviser, with a significant number of clients in the not-for-profit space,” the Foundation North release says. It is understood that JANA has several NZ clients on its books already, including the BNZ KiwiSaver scheme and Trust Waikato. BNZ is owned by NAB, JANA’s former part-owner.
Now part-owned by IOOF, which bought the NAB remaining holding following its purchase of the National Australia Bank-owned MLC earlier this year, JANA has recently built up its insurance consulting capability, with an established general insurance advice process, and promoted Greg Wilkinson this year to head it up. This should provide more opportunities in the shaky isles.
Bhav Dhillon, Foundation North chair, said: “The 2020 review has been planned for some time. The review focussed on the services offered by consultants, the technical capability and depth of research, feedback from other asset owners and value for money. The decision was based on a weighted consideration of all these factors taken together.”
Foundation North hired Fidato Advisory – headed by former Russell NZ chief, Ed Schuck – to conduct the review in February.
JANA assumes the Foundation North advisory role in January. Investment changes could be looming with the charitable trust’s portfolio heavily weighted to private equity, as per the Cambridge model.
– Investment News NZ
