Queensland Investment Corporation (QIC) has begun an offshore sales push for a global fixed income absolute return fund in a continuation of its strategy to diversify and grow its client base, and is focusing on Asian and European investors.
QIC has seeded a Dublin-domiciled version of its global fixed interest alpha fund (GFI Alpha) with $20 million from an existing multi-manager product and is primarily targeting Asian and European investors in an effort to attract more funds under management.
“We’ve been growing our client base for the last five years,” Doug McTaggart, chief executive officer of QIC, said.
He said that QIC’s real estate team has sourced money from overseas investors for its shopping centre fund, and that future launches of products aimed at offshore investors were imminent.
“Not a lot of our funds under management comes from offshore investors, and we certainly see the opportunities overseas.”
QIC was founded to manage assets of the Queensland Treasury and all portfolios of the $23 billion QSuper, which has become its biggest client.
Now that QSuper is seeking autonomy over its assets as it pursues an APRA licence – it has appointed Brad Holzberger, former QIC head of asset management, as its chief investment officer and built up its investment committee – it would be in QIC’s interests to keep diversifying its client base.
McTaggart said QIC’s push overseas was not related to QSuper’s efforts to gain autonomy over its investments, and said it was a continuation of the manager’s general strategy.
GFI Alpha has been run in
Australia for almost four years and holds about $200 million. Since its July 2005 inception, it returned 13.4 per cent each year for the period to May 31.