Mosaic

The Point 2024 is more than just two days of world-class speakers – it’s your chance to network and enjoy unforgettable social experiences. The grand finale of day one is The Point After Hours dinner, sponsored by Stripe, and features: 🎤 Folk duo Lana and Mitch 🎸 The Hipstamatics with their blend of Motown, soul, and funk 💃 The New Zealand Dance Company There’s more than just The Point After Hours to look forward to. Join us the evening before the conference at HI-SO Rooftop Bar at the SO/ Hotel. Secure your conference pass today! https://lnkd.in/gvbUNwm8 A big thank you to our sponsors for making it all possible 🙏 FIS Worldline Swift Stripe Visa Mastercard ACI Worldwide Buddle Findlay The Middleware Group Industrial and Commercial Bank of China Hudson Gavin Martin Banzpay Skyzer NZ Tranxactor Yuno #paymentsnz #futurepayments #ThePoint2024 #NavigatingBeyond 

A periodic review of Investment Governance should form part of a MIS manager Board's broader oversight evaluation processes – recalibration may be required in the context of shifts in investment strategy, types of assets/asset classes utilised, scale, changes in management approach (internalised management vs use of external managers) etc. The FMA’s recently formalised guidance on Liquidity Management spoke to a number of processes relating to liquidity risk management that would form part of a broader governance framework. For those who may not have already come across it, APRA’s Prudential Practice Guide SPG530 Investment Governance provides quite a detailed perspective on its expectations for a Registerable Superannuation Entity. It covers the role of the board, the investment governance framework (which it requires be reviewed by operationally independent persons at least every three years), investment strategy formulation, giving effect to the investment strategy, liquidity management, stress testing, and valuation governance. Worth a read. #investmentgovernance #investmentmanagement #governance #riskmanagement

The regulatory focus on super funds’ increasing exposure to illiquid assets continues to grow across the Tasman with the IMF now weighing in with concerns re liquidity risk, particularly as it relates to private equity and credit. The continued consolidation of funds into "mega-funds" is adding to the risk mix from a scale and concentration perspective. In response, APRA plans to launch its first financial system stress test in 2025 and it’s in the final stages of a deep dive review of asset valuation and liquidity management practices for a cross section of large and mid-size trustees with material exposure to unlisted assets. Local discussions re the potential role of private market assets (more particularly those that are NZinc-centered) in KiwiSaver funds continue. Currently, we are nowhere near the exposure levels of the Australian funds, but if/as we increase exposures one could foresee at some point in the future the possibility of similar dynamics playing out, including the consolidation dynamic – in that regard it’s interesting to note from IR data that 18 of our 38 schemes have less than 10,000 members. It will be interesting to see what insights emerge from APRA’s deep dive and stress testing activities.

We have just finished our Mosaic Lunch and Learn Series. It was great to see so many people join us. We are looking forward to holding the same series at Australian lunchtime in the new year. If you missed any of the sessions, they are now all available at https://lnkd.in/gSYzCbEX. If you have any questions, please don't hesitate to email me or message me.

Throughout my career I’ve launched a few KiwiSaver schemes, so have a fairly long (well as long as KiwiSaver anyway) enduring relationship with what a difference KiwiSaver can make. I’ve also seen it play out firsthand - enabling one of my children, and my stepson into their own homes and a more assured retirement for my parents. As a result, I’ve been closely following the current conversations around KiwiSaver settings, including those centered on contribution levels and asset choices. I believe ongoing dialogue and debate are healthy, especially when they focus on making KiwiSaver work for more New Zealanders. It’s in that same spirit that I write this post – with concern that we may be inadvertently leaving some New Zealanders behind, especially those who may need it most. Since the advent of KiwiSaver, employer contributions have been contingent upon employee participation—a ‘you contribute, I contribute’ mutuality. While this works well for those who can and do contribute (it's a great motivator), it leaves out those who can’t or don’t, potentially widening the retirement savings gap and exacerbating wealth inequality. Although those on contribution suspension or who have opted out span across income brackets, the impact is often most acutely felt by those who have the least. So, my contribution to the KiwiSaver conversation is this: Should employer contributions be universal i.e., not contingent on employee contributions, in order to foster a more inclusive and equitable retirement savings environment? In a climate when every dollar counts, pausing your own contributions may be a necessity, but should this mean losing out on employer contributions too?

  A very worthwhile day at yesterday’s INFINZ 2024 Conference. The lineup of speakers was excellent, and peppered with plenty of pragmatism, offering views on New Zealand’s (and the global) financial and economic landscape, alongside innovation, behavioral science and plenty of AI narrative. A few points I took away, in addition to some good book recommendations: 1. There is a cautiously optimistic economic outlook, with a government plan to return to surplus by 2028, and heightened focus on people, trade and investment, regulation reform, and infrastructure. 2. Inflation models have been broken. Everything we thought we knew has been tested. 3. When it comes to innovation (i.e., AI), you’ll want to be on top of the wave, not get washed over by it. 4. Michael McQueen is worthy of his public speaking accolades (as too was Carl Tannenbaum). Michael did a good job of reminding us of our own cognitive biases, the danger of complacency and that we’re all pretty hopeless at year 10 science recall and recognition of AI faces. 5. That in times of rapid change, those who remain adaptable and curious will lead the way forward. 6. And, finally, when you’re flying through turbulence, you’ll want to have invested in a flight crew who’ve done it before - but until you have experienced heavy turbulence you won't fully appreciate it. Well done INFINZ – I’m looking forward to next year already.

Nice to chat with Stephan Clark on NZ Funds' The Monday Call recently to share some perspectives on the shifting financial services regulatory landscape - the time flew by as there is certainly plenty to talk about! #regulatorychange https://lnkd.in/gVYS-7e5

I came across this book last week and, in between Olympic events, made a start over the weekend. It was published last year and received numerous accolades including a “best book of the year” as awarded by the Economist, Financial Times, CEO Magazine, Morningstar. The author identifies the errors in judgment and decision-making that lead projects, both big and small, to fail, and the research-based principles that support project success. He draws on a database of circa 16,000 (and growing) projects from 20+ different fields in 136 countries. A sobering insight was that of all these projects 8.5% delivered in terms of both time and cost, and only 0.5% time, costs and benefits. The probability distribution of outcomes is “fat tailed”. I’ve read Chapter 1) where the principle of “think slow, act fast” – is explained. Getting into action quickly feels right, but it’s wrong. And the longer a project goes on for, the greater the opportunity/window for it to go wrong (“the window of doom” as it is referred to). So far, the content is proving to be very thought provoking, prompting some reflection on the numerous projects both big and small I’ve been involved in over my career - I am looking forward to the insights I have no doubt the rest of the book will provide #projectmanagement #execution #riskmanagement