Perhaps the assumption that markets are still anchored by predictable economic policies needs to be challenged. For the first time since the fall of the Berlin Wall, political volatility – once background noise – is potentially reshaping investment risk at a structural level.
Despite authorities taking their foot off the environmental, social and governance pedal and recent volatility in equities and bonds, the benefits of Artificial Intelligence and improved investor transparency are just beginning.
NZ Super winds up private equity mandates
The NZ$43 billion (A40.1 billion) $NZ Superannuation Fund (NZS) revealed it has wound up three private equity mandates over the last year with a total value of about NZ$100 million. According to the NZS website, it has exited the NZ$35 million Hancock Natural Resources timber investment after a 14-year holding period.
As well, the fund closed one of its three US life settlement mandates managed by Apollo Global, valued at NZ$70 million while drawing down the remaining NZ$1 million it held in the Sveafastigheter Fund III, which invests in Finnish and Swedish real estate.
Last year the NZS also swapped out a NZ$315 million merger-arbitrage mandate, appointing Neuberger Berman in place of incumbent, Ramius.
The only NZS mandate awarded this year was a US$115 million investment in North American data centres along with specialist firm, CIM Group. However, NZS is primed to increase its allocation to equity factors shortly either through existing managers or new mandates.
According to the 2018 NZS annual report, its current factor portfolios managed by AQR and Northern Trust were valued at NZ$918 million and NZ$770 million, respectively, as at March 31 last year. The NZS 2019 annual report is due out in October.
– David Chaplin, Investment News NZ
