Copyright investmentnews
Wellington-based investment administration firm, Adminis, has been cleared to enter the retail fund-hosting game after earning a licence from the Financial Markets Authority (FMA) last week. Adminis launched a wholesale fund-hosting service in 2024, since establishing portfolio investment entity (PIE) vehicles for three Australian managers – GCQ, Munro Partners and Merricks Capital Partners. But the wholesale label limited the distribution appeal for Adminis-hosted PIEs compared to products offered under a full managed investment scheme (MIS) licence. David Mansfield, Adminis head of business development, said with an MIS licence the group can now “assist our clients to offer their funds to the much larger retail investor market, removing potential barriers for investment”. The retail capability puts the firm on the same footing as FundRock NZ, which hosts PIE funds for about 25 managers. FundRock, previously Implemented Investment Solutions, is the largest fund-hosting business in NZ but several other groups including Smart, Clarity (part of Shaw and Partners), Harbour and Salt badge PIE versions of external global manager products. Adminis also provides a range of services to many of the FundRock products. Spawned inside a private wealth advisory firm in 2013, Adminis has grown from a niche operator to a substantial local investment back-office provider, now reporting more than $10 billion of assets under administration held on behalf of almost 50 clients and 45,000 plus underlying investors. In August this year the group also landed a coup after winning selection as custodian for the $1.3 billion Auckland Future Fund (AFF). The AFF hired Swiss firm Vontobel as underlying investment manager. According to the latest board minutes, the AFF approved the statement of investment policy and objectives (SIPO) in October, opening the way for money to flow to Vontobel (and Adminis) from the fund’s current cash and term deposit holdings. In other business, the AFF board noted that the Auckland Council’s responsible investment policy review had been pushed out from October this year to next March to “better align with the political calendar”. “The review will be carried out with the managers of the council’s Self Insurance Fund (SIF) (Russell Investments) as the policy also applies to the SIF,” the AFF board minutes state. And the Auckland Council is also awaiting the passage of a bill through parliament aimed at protecting the AFF from future political meddling. Under the legislation, at least 75 per cent of councillors would have to approve a plan to dip into the AFF beyond its current settings: the fund has a target annual return of 7.24 per cent with 5.24 per cent distribution earmarked for the Auckland Council every year. The Auckland Future Fund Bill – referred to parliament by the Council – passed through the whole of house committee late in October with a third reading possible this year.
