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.
The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.