A Melbourne-based super fund has awarded an $80 million global equities mandate to Five Oceans Asset Management’s World Fund.
Catholic Super awarded the mandate, following on from its merger with National Catholic Superannuation Fund in March this year.
With more than 70,000 members and 4,000 employers, the fund’s value is about $4 billion, according to the fund’s chief investment officer, Garrie Lette.
This places the global equities mandate at about 2 per cent of the fund’s asset allocation.
The mandate reallocates funds that were with other managers, and is part of Catholic Super’s strategy to cut the number of managers, Lette said.
“It was part of an overall review of our exposure to the asset class following a merger with another fund (NCSF) during the year,” he said, while refusing to name the managers that had mandates terminated.
“We liked Five Oceans’ benchmark-unaware and unconstrained approach,” he said, and added this approach should “hopefully” provide “downside protection”.
“They’re prepared to adjust their net exposure to the market,” he said, “and have an active approach.”
Catholic Super also considered Five Oceans’ awareness of responsible investment issues, he said, and this “appeals to us”.
The win takes Five Oceans to $350 million under management overall. The World Fund, which is denominated in AUD, has returned a gross 2.84 per cent over the five years to last quarter, against minus 5.42 per cent for its benchmark, the MSCI World (ex-Australia).
However CEO Ross Youngman said those returns were “double digit” in weaker currencies such as the sterling and euro. He just completed a marketing trip to Europe and said Five Oceans, which is part-owned and backed by Challenger Financial Services, would step up its marketing effort in that region next year, possibly including formation of a UCITS fund.