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)
A "substantial" parliamentary bill acting as a "roadmap" for the long-term future of private pensions will lead to a "significant period of calm", Guy Opperman has promised.
The Department for Work and Pensions (DWP) has completed its appointment process for the Single Financial Guidance Body's (SFGB) board, naming three non-executive directors.
Pensions and financial inclusion minister Guy Opperman has launched a simplified two-page annual statement in a bid to provide a best practice template for the industry.
Some 70% of defined contribution (DC) members want to know their scheme is personalised and tailored to their needs, an Invesco language study reveals.