VicSuper awards $100m mandate to Payden and Rygel

27 January 2015
| By Malavika Santhebennur |
image
image
expand image

Victorian industry super fund VicSuper has given a $100 million mandate to global fixed interest manager Payden and Rygel (P&R) to manage an absolute return investment portfolio.

It is the second mandate awarded to Payden and Rygel after an initial $110 million mandate in 2012. 

The mandate will be part of the fund's alternatives strategy.

VicSuper's chief investment officer Oscar Fabian said the portfolio is a combination of ideas from P&R's underlying specialist sector teams.

"The debt portion of our fund continues to perform well. We believe however, that the current economic conditions will inevitably lead the Federal Reserve to raise interest rates," Fabian said. 

"The introduction of this new mandate with its shorter duration ensures that our fund is well positioned when they do." 

The P&R absolute return strategy is looking at gross returns of 2.5 per cent above the three month AFMA Bank Bill Swap Rate over the medium term through a wide range of global fixed interest investments and active management of portfolio duration.

The 2012 mandate, which currently stands at over $300 million, was to manage a portfolio of diversified global fixed interest assets comprising a mix of investment grade bonds, high yield and emerging market debt.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

18 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

18 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

19 hours ago