ASSET Super has allocated $55 million to a new global tactical asset allocation (GTAA) mandate with four managers as part of a major restructure which has resulted in a significant reduction to traditional active management in equities and bonds.
The GTAA mandate, via the firm’s consultant, Intech, is split between AQR Capital, Barclays Global Investors, First Quadrant and Mellon Global Investments. Interestingly, First Quadrant and AQR are both affiliates of the Affiliated Managers Group, which only set up an Australian office this month. The move followed a decision by ASSET, a $1.3 billion fund, to last year commence a $160 million private equity and other unlisted investments program through Intech’s partner firm, Quentin Ayers. John Paul, Asset’s chief executive, said yesterday that the total portfolio shift, including a move from active management of bonds and listed property to passive, should not increase overall volatility. The Australian equities portfolio will be reduced by $26 million, the international shares portfolio by $31 million and Australian bonds by $67 million. This money will be reinvested the following way: $16 million with SSgA in international bonds; $2 million with Vanguard in listed property; $39 million with Lasalle/Perennial in international listed property; $12 million in cash with Macquarie, and the $55 million in GTAA. Vanguard will also be the recipient of the Australian listed property mandates to be terminated with SG Hiscock and Credit Suisse – valued at $58 million.
The $34 billion Brighter Super is set to shift a significant proportion of equities assets in MySuper from passive to active management. Chief investment officer Mark Rider says the move is possible because of the 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
