Super fund’s smart glass investment
THE New Zealand Superannuation Fund has taken a US$75 million (NZ$113m) stake in hi-tech United States company View, which makes dynamic-tinting glass.
View’s glass can be tinted by passing a low electrical current through it, which commercial building owners can use to control, light, glare and preserve views by avoiding blinds and shades.
The Super Fund is New Zealand’s sovereign wealth fund, set up to help prefund some of the future costs of NZ Super by investing in assets all around the world.
A portion of the fund is invested in higher risk, direct investments in New Zealand and overseas in a bid to diversify and earn higher returns.
Matt Whineray, NZ Super Fund chief investment officer, said View’s growth potential in a large market, and the exposure it provided to the energy efficiency sector, made it an attractive addition to the fund’s portfolio.
The View system has been installed in more than 120 buildings across North America.
As well as making buildings more pleasant to be in, View says its glass systems, which can be controlled remotely, allows for greater control over cooling, heating and lighting buildings.
View markets its glass system as giving buildings their views back, a reference to being able to take out the blinds and curtains.
Nigel Gormly, NZ Super Fund’s head of international direct investment, said though commercial buildings were the current focus of View, many other uses were possible.
Luxury homes and cars were among the possible uses. ‘‘The applicability is immense.’’ Gormly said the NZ Super Fund with its long-term investment horizons was well-placed to invest in companies like View which had proved their technology works, but were not yet at a stage where they could list on a stock exchange.
‘‘While these investments in early-stage companies with strong growth potential make up only a small part of the overall fund – around 1.5 per cent – they are an appropriate part of the mix for a long-term, diversified investor seeking to maximise returns,’’ Whineray said.