Asset Super will review its asset allocation strategy at an investment committee meeting on November 27, and has revealed it has re-signed Intech as asset consultant for another two years.
Interestingly, the $1.3 billion fund’s board made the decision at the end of the financial year, just after Intech had announced its intention to sell at least half its business. Asset general manager, John Paul, remained confident Intech’s service would be improved by a larger capital backing, following last week’s sale to Skandia for a rumoured $50 million. “Back when we hired Intech [replacing JANA in July 2001] they had a strong view they didn’t like unlisted assets, and part of that was probably them not having the resources to research them,” Paul said. “But they have since formed a strategic alliance with Quentin Ayers to assess private capital opportunities, and are reviewing their view on long/short strategies, and we think the new ownership will give their research even greater scope.” Asset terminated JANA just before the consultant’s bold asset allocation calls, famously including an extreme underweight to international equities, began to pay off. According to SuperRatings, Asset’s default option returned a net 8.1 per cent for the five years to September 30 2006, against 9.1 per cent for the agency’s balanced median.
There is one investment area where Insignia’s $180 billion super arm has not lost money for the past 17 years, which is what it calls the insurance-related investments. The alternatives strategy is gaining popularity among asset owners due to its diversification benefit, but Insignia’s super and asset management investment chief Dan Farmer warns it is a space where investors can suffer if they “stumble in without doing the homework”.
Darcy SongJanuary 23, 2025
