The $1.6 billion TWUSuper fund has allocated $210 million to alternative investment strategies after a review headed by Mercer Investment Consulting.
Following the reallocation TWUSuper has awarded a $60 million to Wellington’s Global Total Return Cash portfolio; $50 million to the Warakirri Absolute Return Fund; $50 million in global REITS through Russell; $25 million ot Calibre Capital, and; $25 million to AMP Capital’s Select Property Portfolio. According to Andrew Killen, TWUSuper CIO, further mandate changes are expected during the year as the fund commits further to alternative funds and sectors. “;With the investment review approving the use of new asset classes and alternative investment strategies, we are working with Mercer to identify the best managers available as we implement the new strategic asset allocation for TWUSuper,” Killen said. TWU has had a colourful period investing in alternatives once before. In the mid-1990s the fund invested about $3 million in a commercial arts funding company which specialised in mounting stage productions. The move was not successful and TWU withdrew a couple of years later.
The $34 billion Brighter Super is set to shift around $10 billion of assets from passive to active management. Chief investment officer Mark Rider says the move is possible because of scale created by mergers, and the fund will be looking to its newly appointed active managers to generate performance through the cycle by taking idiosyncratic risks.
Darcy SongJanuary 21, 2025
