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Value managers recover strongly; The lastest finance company and rates news; Pending pension crisis bigger than GFC.

Monday, November 2nd 2009, 7:37AM

Value managers have recovered quite strongly both in an absolute sense and with respect to positive excess returns a study by Standard and Poors says.

The study of Australian fund managers says the global financial crisis exposed some distinct gaps in the risk controls of some of the best credentialled value managers, while some of the smaller and more focused boutiques performed strongly.

It says there was a reasonable dispersion in returns which suggests that the specific characteristics of the individual managers are far more important than style orientation during periods of extreme volatility.

It says some of the managers with very large teams demonstrated impressive track records before the global financial crisis, this did not seem to help during the crisis, with some of the managers with larger teams being the poorest performers.

Briefs from depositrates.co.nz
Equitable to take up the government's extended guarantee; Commerce Committee pushes out deadline for finance company inquiry; TrustPower considering entering the retail bond market; Pyne Gould shakes up boardroom. Read about these stories here

Pending pension crisis bigger than credit crisis: Mercer
Treasury’s long-term fiscal statement, released last week, is a chance to debate issues around NZ Superannuation, according to Mercers and the Retirement Commissioner, Diana Crossan.

Mercer's, New Zealand Retirement, Risk and Finance business leader Paul Newfield describes superannuation as the “political elephant in the room.”

"At present there seems to be a lack of political appetite in New Zealand to really engage on retirement savings,” he says. Newfield says “that the pending pension crisis in years to come will dwarf the current global credit crisis in both severity and spread".

"We have to be seriously reviewing areas of policy such as NZ Super's eligibility age, whether NZ Super should be income or asset tested (targeted super) and the need to build and encourage a savings framework based on the provisions within KiwiSaver.

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