New Zealand Superannuation Fund, Auckland, hired Elementum Advisors to run a US$125 million portfolio of catastrophe bonds, according to the NZ$16 billion ($11.1 billion) fund’s website.
The size of the mandate could increase to US$250 million. It is the fund’s first allocation to catastrophe bonds. The fund’s portfolio will focus on U.S. hurricanes and earthquakes, with some exposure to European windstorms and Japanese earthquakes, according to the website.
Separately, the fund terminated AXA Rosenberg from a global small-cap equity and a global equity long/short mandate. The sizes of the mandates could not be learned by press time.
Fund spokesman Paul Gregory could not be reached by press time.