Diversified Portfolio

Structure of Governance

The trust consists of a board of six trustees that are elected by Consumers for terms of four years. Trustees continuously review and adopt global best practices in the oversight of the trust’s portfolio.  The day-to-day operations of the trust are managed by a Chief Executive and staff.

Trustees recognise that specialist advice and/or services may be required in the areas of taxation, portfolio management and investment management, and seek the assistance of third-party providers as required. Professional advisors must be independent of investment managers and providers of managed fund products.

The trustees have appointed an investment advisor to provide strategic advice, to assist the trustees to develop their investment policies and to help evaluate the performance of the Diversified Portfolio and the Trust’s investment managers. The appointed investment advisor is Frontier Advisors. Frontier Advisors has been at the forefront of delivering investment advice and technology to institutional investors for more than 25 years. They provide advice on $600B of assets across the superannuation, charity, public, insurance and higher education sectors.

 
Our strategic objectives for our investments are:

To invest the assets of the Diversification Portfolio with the aim of generating sufficient total investment returns over the long-term to:

•    Meet the costs of managing the Diversification Portfolio;
•    Comply with the distribution policy; and
•    Maintain the real (inflation-adjusted) value of the Diversification Portfolio to maintain fairness between present and future generations.

Investment strategy

• Global equities
• Australasian equities
• Private Infrastructure (Global)
• Private Real Estate (Australasian)
• Private Equity
• Private Debt (NZ)
• NZ Cash

Strategic Asset Allocation

The SAA adopted by the trustees as the target mix of asset classes to which the Diversification Portfolio will be managed, as a matter of policy, is shown below: