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Elementum Advisors wins catastrophe linked investments mandate

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Alternative investment manager Elementum Advisors has been appointed by The Guardians of New Zealand Superannuation to manage a catastrophe-linked investments portfolio. 

The initial size of the mandate will be USD125m and is ultimately targeted to be USD250m.

This is GNZS’s maiden allocation into catastrophe linked investments. It was attracted to the asset class because of the diversification benefits and due to its potential to deliver attractive risk-adjusted returns. 

“GNZS selected Elementum as its partner because of Elementum’s significant experience managing such investments and its track record of performance,” says the Guardians’ general manager, private markets, Matt Whineray.

This is one of the first investments awarded to Elementum in 2010 and GNZS is its first New Zealand-based investor. 

“Elementum is privileged to serve as an investment manager for GNZS and we look forward to serving the Guardians and the pensioners of New Zealand in the years to come,” says Tony Rettino, a founding principal of Elementum.

The New Zealand Superannuation Fund, which commenced investing at the end of September 2003, is designed to reduce the tax burden on future New Zealand taxpayers of the cost of New Zealand superannuation. An ageing population means the cost of providing New Zealand superannuation is expected to double over the next 50 years. To prepare for this, the government has made contributions to the fund while the cost of superannuation is relatively low.

The fund will invest the money on a prudent but commercial basis and the government will begin to make withdrawals from 2031, when the cost of superannuation has increased.

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