The $1 billion AvSuper has made its first dedicated investment in emerging markets.
The fund has allocated $25 million to an emerging markets trust run by London-based manager Genesis Investment Management, raising its emerging markets allocation to 12 per cent of its international equities portfolio from its previous level of 5 per cent.
Before investing in the Australia-domiciled Genesis trust, AvSuper gained a slight exposure to emerging markets through its investments with global equity managers. “But now we’ve decided to get a more significant exposure and use an experienced, dedicated manager,” AvSuper chief executive officer, Michelle Griffiths, said.
The investment is among those instigated by a review of the fund’s portfolio made by JANA Investment Advisers after it replaced Russell as the fund’s asset consultant seven months ago. In January, AvSuper awarded a $30 million mandate to global equities manager Walter Scott, a decision recommended by JANA and in particular Robert Sturzaker, the firm’s lead consultant to AvSuper.