Funds SA employs a “manager of manager” approach. This means we engage professional fund managers to manage each asset class.
Working closely with fund managers means we can combine our skills, networks and expertise to maximise return on assets entrusted to us.
When it comes to selecting a fund manager, we not only consider their competence and experience, but also how well they “fit” the particular portfolio.
Past investment returns are important, but we look at a range of areas that have proven to be reliable indicators of the future performance of a fund manager. Things like:
- the manager’s investment process , including:
- decision logic
- clarity, transparency and accountability of decision making
- depth of research
- rigour of portfolio construction;
- quality of the investment team , including:
- experience
- team dynamics
- knowledge;
- the investment portfolio , including:
- strength, nature and diversity of stock selections
- biases in the portfolio, eg large/small capitalisation equities, value/growth stocks, sectoral allocations
- sources of past performance, eg was performance driven by a diverse range or only a limited number of investment decisions.
The table below lists managers appointed to specific asset class mandates.
Fund Managers as at September 2008 *
| SECTOR | SUB SECTOR | INVESTMENT MANAGERS | |
| CASH | Macquarie Investment Management | ||
| FIXED INTEREST Global assets hedged to AUD |
PIMCO | ||
| Loomis Sayles | |||
| INFLATION-LINKED SECURITIES Global assets hedged to AUD |
Australian 85% | Internal Colonial First State Credit Suisse Asset Management |
|
| Global 15% | Barclays Global Investors | ||
| DIVERSIFIED STRATEGIES INCOME Global assets hedged to AUD |
Australian Credit and Hybrids 40% | Credit Suisse Asset Managment Macquarie Investment Management |
|
| High Yield Loans 15% | AMP Capital Investors | ||
| Emerging Market Debt 10% | GMO & Co | ||
| Diversified Fixed Income 15% | PIMCO | ||
| Multi-Strategy 20% |
Bridgewater Associates Barclays Global Investors |
||
| PROPERTY A Global assets hedged to AUD |
Listed Property Securities 65% | Australia 25% | Vanguard |
| Global 40% | Morgan Stanley Investment Management RREEF |
||
| Direct Property 35% | AMP Capital Investors Colonial First State Asset Management |
||
PROPERTY B |
Listed Property Securities 65% | Australia 25% | Vanguard |
| Global 40% | Morgan Stanley Investment Management | ||
| Direct Property 35% | Colonial First State Asset Management | ||
| AUSTRALIAN EQUITIES A | Broad Market 97% | Balanced Equity Management Barclays Global Investors Bernstein Australian Value Goldman Sachs JBWere Orion Asset Management Perennial Growth Management Perennial Value Management |
|
| Small Companies 3% | Kinetic Investment Partners | ||
| AUSTRALIAN EQUITIES B | Broad Market 100% | Barclays Global Investors Bernstein Australian Value Goldman Sachs JBWere Orion Asset Management Perennial Growth Managment Perennial Value Management |
|
| INTERNATIONAL EQUITIES A 40% Hedged to AUD |
Global Broad Market 70% | Alliance Bernstein Applied Quantitative Research Massachusetts Financial Services Axiom International Advisors LSV Asset Management |
|
| Small companies 15% | USA 7.5% |
Rainier Investment Management Jacobs Levy Lord Abbett Turner Investment Partners |
|
| Europe, Asia, Canada 7.5% | Fidelity Investments | ||
| Emerging Markets 15% | Barclays Global Investors Genesis Investment Management GMO & Co |
||
| INTERNATIONAL EQUITIES B 40% Hedged to AUD |
Global Broad Market 70% | Alliance Bernstein Applied Quantitative Research Massachusetts Financial Services |
|
| Small companies 15% | Fidelity Investments | ||
| Emerging Markets 15% | Genesis Investment Management Barclays Global Investors GMO & Co |
||
| DIVERSIFIED STRATEGIES GROWTH A Global assets hedged to AUD |
Australian Private Equity 15% | 14 Fund managers | |
| International Private Equity 50% | 12 Fund of fund managers 1 Fund manager |
||
| Opportunistic Real Estate 10% | Russell Real Estate Advisors | ||
| Infrastructure 15% | No mandates as yet appointed | ||
| Other Opportunities 10% | Genesis Investment Management | ||
| DIVERSIFIED STRATEGIES GROWTH B Global assets hedged to AUD |
Australian Private Equity 15% | Macquarie Investment Management | |
| International Private Equity 50% | Adam Street Partners Pantheon Ventures |
||
| Opportunistic Real Estate 10% | Russell Real Estate Advisors | ||
| Infrastructure 15% | No mandates as yet appointed | ||
| Other Opportunities 10% | Genesis Investment Management | ||
'A' Portfolios suitable for tax exempt investors. * The sub-sector strategies and investment managers listed in the table above are subject to change. Funds SA's continual monitoring and annual sector reviews re-evaluate the appropriateness of investment strategies and managers on a frequent basis. |
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