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VicSuper awards $100m mandate to Payden and Rygel
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.
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