Despite being a growing reservoir of funds under management, this critically important pool of capital is confronting mounting problems collating and disseminating key data in a timely manner.
The ratings house is pinning its growth strategy on a revamped methodology that increases the emphasis on governance to 25 per cent – a timely move considering APRA’s proposed reforms.
Flight risk as Air NZ Super on-boards options
Close to NZ$1 billion (A$940 million) is up in the air in one of the biggest superannuation fund tenders in New Zealand for years approaches touchdown.
It is understood the almost $1 billion Air NZ corporate superannuation fund had short-listed a handful of candidates for the top-flight gig with a decision expected before Christmas.
Air NZ confirmed the tender was underway but was unable to supply further details about landing times.
“We carried out a review of our KoruSaver superannuation scheme last year to make sure it remains current and continues to offer Air New Zealanders an outstanding retirement savings scheme,” the ANZ spokesperson said. “One of the recommendations from this was to benchmark our current service provider with others in the marketplace through a Request for Proposal.
“In September, we began this process and started engaging with interested superannuation providers. This process is still ongoing.”
Air NZ is looking for the prospective provider to supply a range of member services in addition to investment management and administration.
The national airline has built up significant savings in the superannuation pool through both a long-standing traditional scheme and a hybrid KiwiSaver option – known as KoruSaver – launched in 2007.
In 2016 Air NZ folded the-then $150 million old-school scheme into the AMP NZ Retirement Trust (NZRT), which already managed the KoruSaver assets.
At the time, the KoruSaver funds numbered about $600 million, however, the total Air NZ assets in NZRT have since ballooned to just under $1 billion. According to the latest Eriksen and Associates master trust survey, the NZRT managed just under $3.3 billion as at the end of September. The NZX-owned SuperLife was the second-largest master trust with almost $2.2 billion under management.
SuperLife could be in the mix for the Air NZ tender with Mercer and passive fund provider, Simplicity, also touted as contenders along with the incumbent.
Felicity Cammock, Air NZ head of employee benefits, is piloting the super tender process for the airline. Prior to joining Air NZ last year, Cammock spent 13 years at Marsh – including seven years at subsidiary firm Mercer – in risk advice and employee benefits roles. She was a Marsh principal from January 2014 to 2017.
– Investment News NZ
