The state health insurer, the Accident Compensation Corporation, now has $47.1b in assets under management. Its chief investment officer reveals why he’s sceptical of US technology stocks and why it’s hard to win infrastructure deals.
Video / NZ Herald
The man managing $47 billion of state investments is sceptical of United States technology stocks like Tesla and Nvidia that are being fueled by artificial intelligence hype.
“History tells us that where there’s technological change going on like that, it’s hard to capture it all, and that the people whoare the early adopters aren’t necessarily the long term winners,” ACC chief investment officer Paul Dyer told Markets with Madison.
“We look back to the previous tech bubble 20 years ago and that pattern’s very prevalent.”
The ACC’s fund is half weighted to bonds, with about one-third made up of domestic and global equities, including almost $1 billion worth of stock in Alphabet (Google’s parent), Microsoft and Apple. That portion was managed by eight external investment managers.
“They’ve tended to be light on those stocks rather than heavy and we can understand why.
Dyer has led the investment teams at both funds in his career.
In the interview above, he discusses what makes a good investor, what the ACC looks for in infrastructure deals and why he likes Warren Buffett.
Get investment insights from the experts on Markets with Madison every Monday and Friday on the NZ Herald.
Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
