Generate To Add CIO, Giving Kiwi Wealth Employment Power Of Global Equity – Magellan Confirms Change

Generate Lead Portfolio Manager Sam Goldwater will assume the role of dedicated Chief Investment Officer (CIO) next year when Kiwi Wealth’s newest hire, Nathan Field, joins the Auckland boutique.

Field, who has run the approximately $1.6 billion Kiwi Wealth Global Equity Themed Fund (now owned by Fisher Fund) for about 12 years, will assume the role of co-portfolio manager of the Generate Direct International Shares portfolio, Goldwater said. … apparently …

” [Generate] The portfolio is split into two sleeves and I manage one of them,” he said. “we will [also] Offers non-KiwiSaver Global Equity Retail Funds managed by Nathan. ”

“I will transition to a more pure CIO role, which will allow me to continue managing the investment team, asset allocation, underlying capital, and co-management of FX strategy.”

Field plans to join Generate next March. Other Kiwi Wealth employees may leave as Fisher Fund consolidates new holdings. It is understood that pre-Christmas staff updates are on the cards.

Generate, now worth $3.5 billion, has taken more and more of its investment work in-house, while making other changes to its lineup of external managers for global equities earlier this year.

Notably, the firm has cut most of its exposure to Australian international equity manager Magellan after selling its unlisted global fund holdings in July this year.

“There are still investments in the listed Magellan Global Fund products,” Goldwater said. “Because it is currently traded at a significant discount, [net asset value] NAV – Options on listed instruments may be redeemed at face value as they expire – Upon exiting the Unit Trust, we decided not to exit this position. ”

He said Generate has replaced the Magellan portfolio with allocations to two value-style US exchange traded funds.

Magellan lost a significant A$23 billion UK mandate last year, more than half of its funds under management (FUM) since the shock exit of kingpin Hamish Douglas and other significant staff changes. I’ve seen

Earlier this month, the Sydney-based manager reported another A$2.5 billion net outflow in November. This is split between institutional money of A$1.9 billion and the remainder from retail funds. End of October.

Meanwhile, the Generate KiwiSaver scheme, which accounts for the majority of the manager’s $3.5 billion FUM, also confirmed last week’s allocation of $20 million to the Movac Growth 6 Fund.

In 2020, Generate put $21 million of its KiwiSaver funds into Salvation Army-managed social housing bonds, and this year $13.7 million into Te Puna Hapori – Verdi public housing bonds.

A new fund, provided by local venture capital specialist Movac, will open up the Generate KiwiSaver scheme to late-stage NZ technology companies, according to a release.

“We are very excited to make our first investment in the venture capital space. Movac has a strong track record of making venture capital investments in New Zealand,” Goldwater said in a statement. increase.
Founded over 25 years ago, Movac has secured funding from a variety of local investors, including the NZ Superannuation Fund.

Several other KiwiSaver providers have dabbled in venture capital investments such as Simplicity (through Icehouse), Pathfinder and Booster.