AMP Henderson, Alliance Capital, BT Funds Management and Tower have won contracts to each manage hundreds of millions of dollars for the Government Superannuation Fund.
The GSF Authority Board yesterday announced that these four managers will manage the bulk of the $3.4 billion Government Superannuation Fund.
Currently the fund is shifting is asset allocation from Government Bonds to a diversified portfolio.
AMP Henderson Global Investors and Alliance Capital Management will manage about $400 million worth of New Zealand bonds.
AMP Henderson will also manage the residual GSF portfolio comprising mainly New Zealand Government bonds which will be sold over time to purchase international and New Zealand equity and international bond assets.
The New Zealand Government bonds will be sold by a tender process as previously announced by the authority.
"The authority recognises the importance of the repurchase agreement market and the contracts with AMP Henderson and Alliance Capital permit them to participate in this market", authority chairman Basil Logan says.
BT Funds Management and Tower Asset Management will each manage up to $200 million worth of New Zealand equities.
International equities investments will be held in AMP's Super WINZ product. An additional international equities manager is yet to be appointed.
To assist in the tender process for the sale of the residual GSF portfolio, the authority has engaged Morgan Stanley Dean Witter as its transition manager.
Morgan Stanley will advise the authority on transition issues and execute the required transition transactions. It will also consult with Treasury's Debt Management Office and work closely with the Reserve Bank to facilitate the authority's bond tendering programme.
The authority expects to complete the appointment process for a currency manager by the end of November.
"The authority received widespread interest in its invitations for investment proposals," Logan says. "The selected managers are very experienced and their appointments will assist the authority to meet its duty to invest the fund on a prudent, commercial basis, consistent with best-practice portfolio management."
The authority has not yet appointed international bond managers. It will consider those appointments once its bond tender programme is further advanced.
|
Asset class |
Strategic asset allocation |
Approx Amount |
Managers |
|
|
International shares |
52.5% |
$1.7 bill |
AMP Super Winz index fund $800 mill plus one other |
|
|
NZ shares |
12.5% |
$400 mill |
BT Funds and Tower |
|
|
International bonds |
21% |
$800 mill |
Yet to be appointed |
|
|
NZ bonds |
14% |
$400 mill |
AMP Henderson ($248 mill) and Alliance Capital |
|
| « Waltus tries to rescue KPMG Centre investment | Sovereign takes regulation bull by the horns » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved