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.
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
