Australia’s $1.4 trillion of superannuation money is proving irresistible to foreign funds.
Sustainable Growth Advisers LP, a Stanford-Connecticut based US$3 billion asset manager, is speaking with consultants Jana and Frontier as well as MLC as it seeks to launch product that will appeal in part to Australian pension funds.
“The Australian market lends itself to long-term relationships,” says George Fraise, a cofounder of Sustainable Growth Advisers.
Fraise’s firm bills itself as an investment manager that protects assets and compounds capital by investing in as many as 30 stocks. Sustainable’s annual return after fees since April 2000 is 2.5 per-cent, according to its web site.
It is the latest to make overtures to Australian superannuation funds, joining the likes of Memphis-based Southeastern Asset Management and Toronto-based AGF who have made concerted efforts to secure investment mandates.
Unlike AGF and Southeastern who have sent out people to staff offices in Sydney, Fraise will be flying to Australia at least once a year to meet with funds and consultants.