POWERED BY MOMENTUM MEDIA
Sunsuper awards $150 million mandate to Payden & Rygel
Sunsuper has awarded a $150 million mandate to US based fund manager Payden & Rygel, who will manage a customised version of its absolute return fixed income strategy for the super fund.
The Payden Absolute Return Investing (PARI) strategy would be an actively managed global fixed income strategy that is unconstrained by traditional benchmarks.
It would aim to produce stable returns over time, regardless of how the overall market performs, and to provide a gross return of 2 to 3 per cent a year above the Bloomberg AusBond Bank Bill Index over time.
By comparison, Sunsuper said its customised mandate will target an excess return, before fees, of 1.75 per cent.
Sunsuper chief investment officer, Ian Patrick, said this mandate will benefit members investing in the fund’s Balanced, Retirement and Conservative options.
“This mandate is one of the many innovative ways we’re adding value to our members’ investment returns to meet their retirement savings needs,” Patrick said.
“Sunsuper’s size and experienced investment team allows us to access specialised overseas investment strategies and tailor portfolios that generate an attractive risk/return profile, provide diversification and deliver greater value for money.”
This was Payden & Rygel’s second absolute return fixed income mandate in the Australian market.
Payden & Rygel was represented in the Australian market by Grant Samuel Funds Management.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
