The NZMB has consulted on proposed changes to its investment strategy and reserves policy. This consultation closed on 6 April 2018. A summary of material covered in the consultation is outlined below.
In 2017 Directors completed a review of the New Zealand Meat Board’s investment strategy. This involved:
- A review of the contingency fund and potential draw down to re-establish red meat export markets in those markets in the event of a significant industry wide bio security event;
- A review of projected industry good funding after the Red Meat Profit Partnership is completed;
- Inflation proofing reserves to maintain purchasing power; and
- The Boards risk appetite.
The review involved work undertaken by professional Investment Advisors who were able to inform the risk and rewards discussion around the expected performance of different assets classes.
As a result, the Board is proposing:
- to move from the current “conservative” approach (all fixed interest) to a “balanced” approach (50% fixed interest, 50% equities); and
- to protect the reserves from inflation.
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. A background document on the review of the investment strategy and proposed changes is available below.
Parallel with the investment strategy review a review of the New Zealand Meat Board’s Reserves Policy was also conducted. Legislative requirements under the Meat Board Act 2004 require the New Zealand Meat Board to have and comply with its Reserves Policy which outlines what and how New Zealand Meat Board is to provide for, and make available its investment funds. Information relating to the current Reserves Policy can be accessed here.
See below for the relevant consultation documents: