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If it's good enough for them it's good enough for us- so much for the "obsession"
Super Fund targets global property
By KRIS HALL - The Dominion Post
Last updated 05:00 10/09/2009
EYES ON PROPERTY: New Zealand's $13 billion retirement nest egg is upping its investment in global real estate.
New Zealand's $13 billion retirement nest egg is upping its investment in global real estate and plans to snap up stakes in listed property funds it still considers cheap.
The New Zealand Superannuation Fund has hired United States investment firm Franklin Templeton Investments as global property advisers to "identify and filter" potential investment opportunities over a five-year period.
As at the end of July 2008, New York stock exchange listed Franklin managed more than US$570 billion (NZ$819b) worth of assets.
In 2004, it paid fines to the US Securities and Exchange Commission, among others, to settle issues regarding questionable practices.
Super fund general manager private markets Matt Whineray said the fund created to partly prefund New Zealand's future superannuation liability was chasing a greater weighting towards property because the asset class provided stable and predictable cash flows over a long investment horizon.
"We see the next five years as a good time to increase that opportunistic investment," said Mr Whineray.
While global real estate stocks had the potential to run out of steam following their recent surge, Mr Whineray said the battered sector still had legs.
To date, the fund has some 12 per cent of its value, or NZ$1.234b invested in property, the bulk of which is managed externally. Most of that, NZ$914 million, is held with global real estate investment trusts.
More money is invested indirectly in property through timber and public infrastructure partnerships such as the $100m injected into the new Morrison & Co-run $500m infrastructure fund that aims to provide money for schools, hostels, social housing and prisons.
While the government directive calling for 40 per cent of the fund to be invested in New Zealand was "not an order", Mr Whineray said the decision to freeze funding until 2021 would be a problem. "Our investments in property and other investment classes will not be as large as they would have been."
Super Fund targets global property
By KRIS HALL - The Dominion Post
Last updated 05:00 10/09/2009
EYES ON PROPERTY: New Zealand's $13 billion retirement nest egg is upping its investment in global real estate.
New Zealand's $13 billion retirement nest egg is upping its investment in global real estate and plans to snap up stakes in listed property funds it still considers cheap.
The New Zealand Superannuation Fund has hired United States investment firm Franklin Templeton Investments as global property advisers to "identify and filter" potential investment opportunities over a five-year period.
As at the end of July 2008, New York stock exchange listed Franklin managed more than US$570 billion (NZ$819b) worth of assets.
In 2004, it paid fines to the US Securities and Exchange Commission, among others, to settle issues regarding questionable practices.
Super fund general manager private markets Matt Whineray said the fund created to partly prefund New Zealand's future superannuation liability was chasing a greater weighting towards property because the asset class provided stable and predictable cash flows over a long investment horizon.
"We see the next five years as a good time to increase that opportunistic investment," said Mr Whineray.
While global real estate stocks had the potential to run out of steam following their recent surge, Mr Whineray said the battered sector still had legs.
To date, the fund has some 12 per cent of its value, or NZ$1.234b invested in property, the bulk of which is managed externally. Most of that, NZ$914 million, is held with global real estate investment trusts.
More money is invested indirectly in property through timber and public infrastructure partnerships such as the $100m injected into the new Morrison & Co-run $500m infrastructure fund that aims to provide money for schools, hostels, social housing and prisons.
While the government directive calling for 40 per cent of the fund to be invested in New Zealand was "not an order", Mr Whineray said the decision to freeze funding until 2021 would be a problem. "Our investments in property and other investment classes will not be as large as they would have been."
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