MLC has temporarily added a passive allocation to its Australian shares strategies within its Horizon Series, which will see Vanguard Investments manage the mandate.
Vanguard has replaced Concord Capital, which has been removed from the strategies.
The move came as MLC opted for more diversification, according to Peter Summer, MLC Investment Management portfolio manager of Australian equities.
"When we see evidence of greater diversity in manager positioning, and genuine diversity of insight, we are highly likely to replace Vanguard with an active manager," Summer said.
"In the current market environment, MLC considers it prudent to add a passive allocation to its Australian shares strategies," he added.
However, while the passive allocation is likely to be a temporary appointment for MLC’s Australian Share Fund, the introduction of a passive manager is likely to be a more permanent feature in the MLC Horizon series of portfolios and MLC Long-Term Absolute Return Portfolio.
