AUSTRALIA - The A$5.9bn Commonwealth Superannuation Scheme (CSS) and the $7.7bn Public Sector Superannuation Scheme (PSS) board has appointed Brandywine Asset Management to manage its global fixed interest mandate.
The CSS scheme was closed to new members from 1 July 1990 and the PSS scheme was then opened all members after that date.
The CSS and PSS Funds each have an 18% strategic allocation to fixed interest, split between mandates with, Mondrian International Advisers, Blackrock Financial Management, Brandywine AM and Bridgewater Associates.
PSS/CSS CIO, André Morony, said: “Our fixed interest line-up represents a diversification of investment styles to tap into different sources of excess returns and thereby maximise the likelihood of consistently strong returns. Brandywine complements the line-up with its focus on real interest rates and a very active management style.”
Brandywine will be benchmarked against the Citigroup World Government Bond Index (ex-Japan) fully hedged to the Australian dollar.
JANA Investment Advisers were the consultants on the mandate process.
The CSS/PS asset allocation includes 30% in Australian equities, 20% international equities, 15% property and 10% international bonds.
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