Solaris Investment Management, a boutique made up of the entire former Suncorp Australian equities team, has been awarded a $150 million mandate originally destined for Suncorp.
The mandate would be invested in the Solaris Core Fund, Tim Hughes, Non Government Schools Super chief investment officer, said. Solaris chief Denis Donohue and his eight colleagues walked from Suncorp and established their boutique last November, with 40 per cent ownership from incubator Pinnacle. “The mandate was going to Suncorp, but we pulled it and gave it to Solaris,”; Hughes said. “We originally awarded it to the Suncorp team on the basis that they were effectively style-neutral in their approach, had significantly proven their expertise and their track record. “That’s why the money has stayed with the same team.” Hughes said the decision to award the mandate to Solaris was finalised during a recent NGS Super investment committee meeting. Solaris’ Core Fund is a vehicle with a long-term outlook that invests in the ASX200 and aims to beat this index by 3 per cent over rolling three-year periods. The manager’s other funds, the Solaris 130/30 Fund and the Solaris High Alpha Fund, remain unseeded.
The biggest risk many super fund members face is not investment volatility but rather not accumulating enough to live on in retirement. Australian Retirement Trust head of investment strategy Andrew Fisher takes Investment Magazine behind the scenes of a migration that saw 1.4 million members moved to a higher-risk, higher-return investment strategy, designed to help them accumulate more at retirement.
Simon HoyleSeptember 12, 2024
