The New Zealand Superannuation Fund is dropping investment mandates with ING and Smartshares and taking them in-house.

The fund announced the changes to improve flexibility, cut costs and is part of the fund's focus on having direct participation in the local market.

This decision means the fund has terminated its relationship with ING, which was appointed to manage passive New Zealand cash and, separately, credit mandates in 2003.

In addition, the fund's relationship with Smartshares also ended. The fund manager was appointed to manage a passive New Zealand equities mandate in 2005.

The decision to drop all three mandates does not affect the fund's allocation in any of the respective asset classes.
 

This month, the fund has mandated US-based Hamilton Lane to advise the fund on private equity investments. BNP Paribas represents and distributes Hamilton Lane's funds and services in Australia and New Zealand.

Matt Whineray, general manager of private markets at the fund, said Hamilton Lane was appointed to provide due diligence and strategy advice on private equity investment managers.