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Inside Money: The quiet investor - no noise as ACC makes big appointment Guy Eliffe, ACC corporate governance manager investments

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Posted 30 April 2015 - 02:46 PM

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Inside Money: The quiet investor - no noise as ACC makes big appointment
9:18 AM Thursday Apr 23, 2015 comments

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http://www.nzherald....jectid=11437243

According to the latest government financial statements, the Accident Compensation Commission (ACC) houses New Zealand's largest fund manager.

The Treasury figures put the ACC portfolio at just over $33 billion as at end of February this year, compared to $29.6 billion for its much more high-profile cousin, the New Zealand Superannuation Fund (NZS).

Unlike the NZS, of course, the ACC fund is receiving regular annual top-ups from the government - well over $2 billion in the last financial year - in addition to an impeccable long-term investment performance that averaged almost 10 per cent annually over the last 20 years.

In its 2013/14 annual report, the ACC fund recorded annual returns of 6.33 per cent, outperforming its benchmarks for the 19th year in a row but only by a slim 0.1 per cent margin.

"... this was the first time in that period that ACC's outperformance did not exceed the costs of managing investments," the 2014 report says.

"Most of ACC's investment portfolios outperformed their benchmarks during the year (particularly ACC's bond portfolios and internally managed equity portfolios), but this outperformance was offset by a negative contribution from our asset allocation decisions."

In particular, the ACC fund was underweight equities and overweight unhedged global currencies (relative to its respective benchmarks).

The ACC fund, however, has an inherent cautious nature - given its mandate to eventually cover the costs of ACC claims - and has about half as much invested in shares compared to the NZS, for example.

"... when we allocate funds between investment markets, we typically have a lower proportion of our funds invested in equities and a higher allocation to long-duration bonds than most other funds, and this liability-aware allocation approach would have hurt our performance in comparison with other funds during the year," the 2014 report says.

Despite that, the ACC fund is the biggest player in the local stock market than NZS, holding approximately $2.8 billion in NZ equities as at June 2014 - equating to about 4.5 per cent of freely available shares on the NZX.

But for all its importance in NZ capital markets, the ACC fund is notoriously publicity-shy. There are no regular monthly performance updates, a la NZS , for example. And discovering which underlying fund managers the ACC invests in can be a chore.

Similarly, the ACC fund just quietly appointed former AMP NZ equities chief, Guy Eliffe, to a new position last week. As reported here Eliffe has taken on the big job of ACC corporate governance manager investments.

- NZ Herald


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The tax payer is topping up this amazing fund, while ACC is still regularly denying coverage, and culling long term claimants from its care. 33 Billion is a massive figure, Brand Key needs to reduce the taxpayers contributions forthwith, otherwise its criminal.

The rorters are ACCs client doctors who are creaming it by denying claimments coverage.
TheOwl - Auckland Central - 12:19 PM Thursday, 23 Apr 2015

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How come it is now an investment coy
Gaucheron - 12:19 PM Thursday, 23 Apr 2015

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It will be business as usual at ACC.

ACC was set up with the best of intentions. It could have been wonderful. But, it has been a huge disappointment.

It is bureaucratic, it is infused with a mean-spirited 'corporate' mentality. It is adverserial towards the people it is supposed to be helping, and it is obsessed with making huge surpluses.

And, it is all being driven by people like Mr Elliffe (at the behest of the govt and minister), with whom I have no personal quarrel, but it is the managers of his ilk that have made ACC into the monster that it now is. It is not his personal fault. It is the fault of the basic worldview of the organisation and their political masters.
Peter Archer - New Zealand - 12:19 PM Thursday, 23 Apr 2015

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ACC is nothing but a rort and a rip off !!

Charge way too much for way too little and it's very means of raising money is just a tax not a premium.
We pay cover on what we earn not the risk we are.
When it was allowed to have competition my premiums to have the same level of cover was one third of what ACC wanted.

These funds are ours gained purely by overcharging us.

ACC premiums should become just that, a premium NOT a tax !!
Peter - Tauranga - 02:41 PM Friday, 24 Apr 2015

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ACC like many Government Agencies - Is Accountable - to No-One - but is this Countries Biggest GARNER OF WEALTH!!.....shrouded in a cloak of.....Propoganda.
Michele - 02:41 PM Friday, 24 Apr 2015

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This ACC portfolio at just over $33 billion comes at a lot of expense, pain, and suffering attached to it. Apart from some revenue investments which some say, me for one, represent morally reprehensible products, genuine claimants have been and will continue to be victimized as a consequence ACC's hijacked ethos.

Sociopathic case managers being payed bonus's to specifically target and exit long term claimants (with an official mandate from the government), off the books, is both criminal
& reprehensible.

The entire system is rotten to the core and with Canadian Paula Rebstock at its helm, on the balance of probabilities, claimants will continue to be mistreated according to her philosophy;

Rebstock maintained whilst Chairing the "Welfare Working Group" to the NZ Listener December / 2012, our benefit system "disables people" & creates child poverty. Really.

$33billion? Now that could really help cut a lot of disabled kids lunches.
Grahame - 02:42 PM Friday, 24 Apr 2015

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ACC is the least competent government body ever. It took me 11 phone calls just to get them to deal with a single sick note.
Kiwimac - 02:42 PM Friday, 24 Apr 2015

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Peter Archer

"It will be business as usual at ACC. ACC was set up with the best of intentions. It could have been wonderful. But, it has been a huge disappointment. It is bureaucratic, it is infused with a mean-spirited 'corporate' mentality. It is adverserial towards the people it is supposed to be helping, and it is obsessed with making huge surpluses. And, it is all being driven by people like Mr Elliffe (at the behest of the govt and minister), with whom I have no personal quarrel, but it is the managers of his ilk that have made ACC into the monster that it now is. It is not his personal fault. It is the fault of the basic worldview of the organisation and their political masters."

I sort of agree. Now wasn't English lining this up for sale a few years ago, telling us it was going to hell in a handcart? 33 billion is hell? I am sick of neo-liberals. Pull that one key.
Greg - 02:42 PM Friday, 24 Apr 2015

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Yet the under 13's still have to pay the ACC surcharge.
dee - Nelson - 02:42 PM Friday, 24 Apr 2015

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Newsflash to all the ACC haters - ACC is an insurance system run by a government owned corporation, it is nothing more and nothing less. As soon as you come to grips with that, then their actions become a whole lot more fathomable.

Investing surplus ACC levies is smart business and in no way should we deter this. That said, like all corporations, if profits and gains are being made then profit sharing through dividends and reductions in levies should be forthcoming.

That is not the case and the profits and gains go back to the greater government pool to fund other government endeavours. While there is no direct and short term benefit to ACC consumers, there is still a benefit to the taxpayer albeit a slight one (an example being the upcoming reduction in ACC levies for road licensing of vehicles)

As an aside the alternative to the ACC scheme is the litigious personal claim regime (like they have in the USA). That is not the answer and in my view, not desirable!
bonloop - New Zealand - 02:45 PM Friday, 24 Apr 2015

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bonloop

"Newsflash to all the ACC haters - ACC is an insurance system run by a government owned corporation, it is nothing more and nothing less. As soon as you come to grips with that, then their actions become a whole lot more fathomable. Investing surplus ACC levies is smart business and in no way should we deter this. That said, like all corporations, if profits and gains are being made then profit sharing through dividends and reductions in levies should be forthcoming. That is not the case and the profits and gains go back to the greater government pool to fund other government endeavours. While there is no direct and short term benefit to ACC consumers, there is still a benefit to the taxpayer albeit a slight one (an example being the upcoming reduction in ACC levies for road licensing of vehicles) As an aside the alternative to the ACC scheme is the litigious personal claim regime (like they have in the USA). That is not the answer and in my view, not desirable!"

Its now just a gatekeeping tax collecton, making lawyers and favorite doctors very wealthy,
while they cull long term claimants onto work & income.
TheOwl - Auckland Central - 11:32 AM Sunday, 26 Apr 2015

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I have to add another comment it is sick that the NZ public have been ripped off by this org for so long it is obscene that they have so much money one third the national debt and a pig of an org to deal with
Gaucheron - 11:32 AM Sunday, 26 Apr 2015

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I'd prefer some alternative choices to the ACC to be available, from private providers.

The ACC is inefficient and the whole no fault concept breeds dangerous workplaces, dangerous roads, dangerous tourism ventures etc etc.

Time Kiwis took responsibility.
Kiwimac - 11:58 AM Tuesday, 28 Apr 2015

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