NEW ZEALAND - The NZ$8.9bn New Zealand Superannuation Fund has appointed Morrison & Co Funds Management to manage an infrastructure mandate.
The fund’s target long term exposure to private markets is 25% which includes private equity, absolute return, timber commodities and infrastructure. Morrison & Co Funds Management will be allowed to invest in New Zealand and globally on behalf of the fund.
As infrastructure becomes an asset class in its own right, some of the world’s biggest pension funds are starting to target the investment for its long-term revenue streams and relatively uncorrelated nature.
Chief executive of the fund commented on the appointment: “The distinction between sectors in these types of investments is often fluid. We tend to avoid both boundaries around the type of investments considered and fixed allocations to these areas.”
As at 31 January 2006, the New Zealand Superannuation Fund had $254m invested in infrastructure. The new appointment brings the total number of external investment mandates to 32.
The size of the new infrastructure brief was not specified. The fund could not be contacted in time for deadline.
By Daniel Flatt
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