Energy Super and Intrust Super have invested a combined $100 million in an emerging markets equity strategy run by global funds manager Neuberger Berman. The Queensland funds are the seed investors in an emerging markets unit trust launched by Neuberger Berman in Australia, according to a statement.
Bob Henricks, chairman of the $3.8 billion Energy Super, says the fund’s $60 million investment in the strategy is its largest exposure to emerging markets.
The fund is already invested in an Asia ex-Japan strategy managed by T. Rowe Price and an emerging markets fund run by Martin Currie.
Neuberger Berman replaces the emerging markets strategy run by the Future Directions Funds, the multi-manager business of AMP Capital Investors, in Energy Super’s portfolio.
The manager focuses on companies in emerging markets that it believes will profit from changing consumer behaviour in the expanding middle classes of those societies.
This results in the manager researching a greater number of small-capitalisation stocks than are listed in the benchmark MSCI Emerging Markets Index.
This aligns with investment views formed by Energy Super executives on a research trip to China and India last year that was organised by its consultant JANA Investment Advisers.