Corporate Information

Risk Management Framework

The Board of Directors has overall responsibility for the establishment and oversight of the NZ Funds Management risk management framework.  The Board of Directors meets a minimum of six times per year to address (amongst other things) risk issues relevant to the Portfolios and the Company. 

To assist in discharging its risk management function, the Board has established three primary committees which are responsible (together with the Board) for developing and monitoring risk management policies.

These committees and their roles and responsibilities are summarised below.

The Investment Committee

Chaired by the Chief Executive Officer, and comprising the Chief Investment Officer and senior Portfolio managers, the role of the Investment Committee is to provide a consultative forum that can effectively address investment matters arising in the Portfolios for which NZ Funds Management is the investment manager.

The Investment Committee has specific responsibility for:

• The development of NZ Funds Management’s investment philosophy and the processes for its application;
• The design of investment strategies relevant to each Portfolio including formalised investment mandates and approved securities lists for each Portfolio;
• The selection and monitoring of external manager relationships; and
• The monitoring of Portfolio performance.

The offer and risk committee

The Offer and Risk Committe is made up of senior members of the legal and management teams, the Offer and Risk Committee is responsible for ensuring legal compliance of the offer documentation and communications concerning the offer to the public of the Portfolios.

It provides a consultative forum that can effectively address matters arising in connection with offering documents and all other communications to investors that are either required by, or have its contents governed by legislation or regulation, with particular reference to the requirements of the Securities Act 1978, including its associated regulations and exemptions.

The advisory committee

The Advisory Committee is responsible for matters arising in relation to the provision of financial advice by NZ Funds Management and/or its related companies and also advisory-related issues relevant to NZ Funds Managment's distribution.

It provides a consultative forum that can effectively address matters covering compliance with the legislation in relation to the provision of advice, with particular reference to the Financial Advisers Act 2008 and the Financial Service Providers (Registration and Dispute Resolution) Act 2008.