The decamping of 11 Invesco global fixed interest staff to Deutsche Bank in March has cost the manager dearly, with Colonial First State’s FirstChoice platform stripping it of $500 million.
Alan Kenny, FirstChoice’s general manager product and investment services, said the staff departures – which included Invesco’s global CIO Steve Johnson, director of US fixed income Ken Bowling and global/UK fixed interest chief Mark Dowding – were the motivation for discontinuing Invesco’s global fixed interest mandate. Within the $4.8 billion FirstChoice Fixed Interest portfolio, it has been replaced by a $527 million global credit mandate with Loomis Sayles, a $471 million fixed income portable alpha mandate with Franklin Templeton Investments, and a $235 million global bond portfolio with Credit Agricole Asset Management (some of these mandates were already partially funded). Kenny said the review also resulted in the introduction of an “;innovative”; investment capability managed by Colonial First State Global Asset Management (CFS GAM), which combines Australian and US duration, global credit and emerging market debt into a single portfolio.
Insignia Financial has shifted to outsource administration of its $180 billion superannuation assets, inking a deal with SS&C and reassigning 1300 workers to the service provider during the process. The decision stands in stark contrast to peers such as Aware Super, which recently internalised member services, but CEO Scott Hartley said that option is a “costly exercise”.
Darcy SongDecember 10, 2024
