NZ Super Fund appoints two more investment managers

Wednesday 28th January 2004

The Board of the Guardians of New Zealand Superannuation Fund today confirmed the appointment of two more investment managers.

They are Fisher Funds Management (FFM) and Allianz Dresdner Asset Management.

FFM would manage a portfolio of New Zealand equities with a focus on smaller companies, namely those listed outside the top ten on New Zealand Exchange.

FFM would be allocated about 1.25% of the total assets of the fund, or about $120 million, by the end of 2006. It had so far recieved $35 million.

Allianz would manage a portfolio of international equities, with an initial allocation of $250 million. It was an active manager and would complement Barclays Global Investors which manages a portfolio more tightly structured around a global sharemarket index.

Several more active international managers are expected to be appointed by the fund during 2004.

The fund has a target asset allocation of two thirds of its assets in shares, with a further 20% set aside for fixed interest securities. New Zealand assets would total about 22% of the fund.

Its performance target is to exceed, before tax, the interest rate on cash by at least 2.5% a year, over 20-year periods.

The fund has so far appointed AMP Capital and Brook Asset Management to manage New Zealand equities, ING to manage New Zealand fixed interest, and Barclays Global Investors to manage international equities.

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