Former TelstraSuper acting CIO Kate Misic has joined the $100 billion HESTA as head of portfolio design. Misic will start with the fund on June 15 and report to CIO Sonya Sawtell-Rickson.

“Kate has broad and deep experience navigating a range of market conditions and asset classes, including internal management, which will be invaluable for HESTA as we continue to leverage our total portfolio approach,” Sawtell-Rickson said in a statement.

“Her deep knowledge and trusted leadership will be invaluable as we continue to evolve, internalise and strengthen our investment strategy for the benefit of our members.”

The head of portfolio design role was left vacant when Dianne Sandoval took up the CIO job at Maryland State Retirement and Pension System. Misic will be responsible for leading top down aspects of HESTA’s portfolio, including portfolio construction and risk analysis, economic and capital market research, and portfolio overlays.

“I’m thrilled to be joining HESTA,” Misic said. “I look forward to contributing to an investment strategy that delivers real impact for members, many of whom have dedicated their careers to caring for others.”

The move comes amidst a small reshuffle in HESTA’s investment team, and the prospect of more to come. Jeff Brunton has also been appointed deputy CIO in addition to his duties as head of portfolio management, while Sawtell-Rickson was understood to have been in the running for the CIO role at the Future Fund, which has now been taken by Richard Brandweiner.

TelstraSuper’s highly-regarded investment team was axed as a result of the upcoming merger with Aware Super, with a spokesperson for the fund saying that “some roles are not required in the new operating model” and that the “decision was made not to duplicate TelstraSuper’s investment functions”. It’s understood that while the larger fund had initially given indications some roles might be carried across, none were – though staff from the Melbourne-based fund were able to re-apply for a number of largely Sydney-based open roles.

The merger is set to complete on 30 April.

Misic’s first role in finance was working with Wilshire Private Markets in Canberra, whose major client at the time was Commonwealth Superannuation Corporation. She subsequently entered the asset consulting field, joining Frontier Advisors as an investment analyst, before heading to Warakirri Asset Management. She joined TelstraSuper, the fund where she would work for 16 years, as head of alternative investments in 2010.

“We’re excited to welcome Kate to HESTA, who brings a strong track record in investments,” said HESTA CEO Debby Blakey. “This is a critical role within our investment team and we’re confident Kate’s expertise will help us continue to deliver the strong long-term returns our members deserve.”