Bridgewater Associates’ global shut-down of its beta-based asset management products has necessitated a reshuffling of the global fixed interest line-up at the Australian Reward Investment Alliance (ARIA).
The Connecticut-based bond and currency manager has been ‘handing back’ money to investors in its traditional product suite. Earlier this year it advised ARIA it was no longer offering the global fixed interest strategy through which the public sector fund had invested roughly $800 million. ARIA’s internal investment team has decided to split the terminated Bridgewater mandate between two new global bond mandates – one with Principal Global Investors’ strategic income fund, which will virtually double the Australian-sourced FUM for this diversified product which aims to add 3 per cent to bank bills on a rolling three year basis, and the other with Rogge Global Partners. Brandywine and Blackrock remain as global bond managers. ARIA’s new chief investment officer, Alison Tarditi, will start on June 12 after four years running equity strategy at Citigroup Smith Barney, while Paul Watson starts in the newly created role of deputy CEO from July 16 after several years as deputy executive director at MTAA Super.
The brunt of losses from the LA wildfires are expected to be borne by primary insurers and high-risk reinsurance programs, but super funds are nevertheless closely monitoring the possible impact of the fires on catastrophe bond and insurance-linked securities exposures.
Simon HoyleJanuary 17, 2025
