The New Zealand Meat Board (NZMB) is to change its investment strategy and reserves policy following consultation.
Earlier this year, the Board proposed moving from the current ‘conservative’ approach (all fixed interest) to a ‘balanced’ approach (50 percent fixed interest, 50 percent equities); and to protect the reserves from inflation.
More than 760 submissions were received during the consultation. Ninety two percent of respondents supported inflation proofing reserves, 90 percent supported moving to a balanced portfolio from an all cash conservative fund and 87 percent supported the Reserves Policy.
The Board made some minor amendments as a result of the responses received and is essentially moving ahead with a strategy based around a balanced portfolio and inflation-proofing of reserves. It is now working with Investment Advisor Cambridge Partners to select a fund manager.
Andrew Morrison, New Zealand Meat Board chairman, says: “Based on the research and comparison with other funds, the Board believes that with a little more risk improved returns can be achieved that will see the reserves grow into the future, while at the same time provide for enhanced industry good funding in the medium-term.”