NEW ZEALAND - The New Zealand Superannuation Fund has invested US$125m in catastrophe-linked securities.
Chicago-based alternative investment specialists Elementum Advisors has been appointed to manage the mandate, which New Zealand Superannuation said could increase to $250m.
Catastrophe-linked investments provide reinsurance to the insurance industry, while allowing investors to access the income stream from the premiums paid on the policies.
The NZ$16bn (US$11.3bn) scheme said the asset class was attractive for its diversification benefits and risk-adjusted returns, while exposure to potential losses is capped.
The mandate will mostly be invested in securities that cover US hurricanes and earthquakes, with some products covering European wind storms and Japanese earthquakes, the pension fund said.
The manager hire is the latest in a series of appointments in the past few months.
Western Asset Management was hired to run a global active investment-grade credit mandate in December, while Milford Asset Management was appointed to manage an active domestic equities mandate last month. (Global Pensions; January 26, 2010)
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.