CARE Super has allocated the $138 million Australian equities mandate previously with UBS Global Asset Management (GAM) across three new mandates.
The UBS redemption was combined with extra cashflow to appoint two new Australian equities managers, Challenger and ParadiceCoopers with $210 million and $125 million respectively, and increase an existing allocation to Acadian by $25 million. CARE Super terminated its allocation with UBS GAM following the departure of key staff, most notably head of Australian equites Paul Fiani. The fund has also recently terminated a $140 million global equities mandate with the Bank of Ireland because of personnel changes and generally disappointing performance. This redemption was transferred to the MFS global equity trust. The fund has also identified potential in listed infrastructure, awarding a $30 million mandate to RARE. Julie Lander, chief executive officer at CARE Super, said that listed infrastructure had lower volatility and lower risk than unlisted infrastructure, and generally lower gearing. “There are also diversification benefits; listed infrastructure has a correlation of 60 per cent to the broader equity markets.” Lander said RARE were transparent, liquid, and had delivered a strong return over the past five years.
As super fund CIOs return to work for 2025, all eyes are on two things: Donald Trump’s presidency, and inflation. But they’re not the only issues that will drive investment decisions and returns, and some of them may present an unfamiliar set of challenges for a cohort of investment professionals that has grown up experiencing a particular set of market and economic conditions.
Simon HoyleJanuary 7, 2025
