The Rotorua Energy Charitable Trust has announced it has appointed Mercer (NZ) Limited as the trust's investment manager, effective from April 1 next year.
Management of the trust's investment assets is currently undertaken under a formal investment management arrangement with Perpetual Capital Management Limited (PCML), a wholly owned subsidiary of the trust.
Trust chairman Grahame Hall said the trustees had engaged consultants earlier in the year to review the management of the trust's investment portfolio which had a value of $140 million.
The outcome of the review led to a decision by trustees to seek proposals from external managers, as well as PCML.
He said trustees employed financial consultants Melville Jessup Weaver to help trustees with the proposal and selection process.
"Trustees had extensive discussions on this matter and it was a difficult decision to move away from utilising the internal investment management team."
In relation to PCML, two of the independent directors' terms expire on December 31 and one other will resign on that date.
Two staff employed by PCML will be made redundant, with one of those staff members being offered alternative employment with the trust, Mr Hall said.
"While internal investment management had served the trust well over the last 20 years, trustees believe the appointment of Mercer is the best option going forward as they are a strong New Zealand-based team backed by global experience and strength."