PIMCO and Karara Capital have both lost mandates in a recent fixed interest review by the $2.4 billion Labour Union Cooperative and Retirement Fund (LUCRF).
Picking up a $70 million Australian fixed interest allocation, Vianova Asset Management has replaced Karara as LUCRF’s ‘core’ Australian fixed interest manager. David McCusker, LUCRF investment oversight manager – said that Karara’s increasing focus on other asset classes, particularly Australian and international equities under the leadership of David Slack – at the expense of fixed interest was the motivation behind the change. “Karara is moving out of the fixed interest space,” McCusker said. Queensland Investment Corporation also manages money in LUCRF’s Australian fixed interest portfolio, retaining its ‘core-plus’ role. PIMCO lost its $50 million high yield and emerging markets mandate with LUCRF to Stone Harbor Investment Partners, a fixed interest boutique with offices in New York and London. Commenting on the termination of the PIMCO contract, McCusker said the design of the manager’s product did not prove to be aligned with LUCRF’s investment strategy.
QIC is gearing up to expand its hedge fund allocation as – together with insurance exposure – the “strong double-digit return” of its liquid alternatives portfolio was a key contributor to the fund’s record $8.9 billion earnings in the 2024 financial year. Chief investment officer Allison Hill explains why global sovereign wealth funds are hot on hedge funds.
Darcy SongOctober 24, 2024
