AUSTRALIA - Colonial First State has awarded three mandates in alternative investments totalling A$300m for its FirstChoice Growth superannuation product.
It awarded A$110m to Aspect Capital, A$105m to Neuberger Barman and A$85m to First Quadrant.
FirstChoice is a platform for employers of small to medium businesses to superannuation plans for their employees. The mandates are allocated from within FirstChoice's multi-manager multi-sector portfolio.
FirstChoice Growth now has a 3% allocation to alternatives, including these mandates and existing allocations to other asset classes such as infrastructure, said Scott Tully, head of investment services at Colonial First State.
"What we're looking for in these managers are strategies that are potentially uncorrelated to equity markets but would generate long term return similar to what equities would return," Tully said. "We were looking for investment strategies that invested in underlying securities that are liquid, because liquidity is a big part of what we offer."
Colonial First State worked with Mercer, its investment consultant, to select the finalists list from which the three managers were selected, Tully said. The three mandates are all that Colonial First State are committing to for FirstChoice Growth, but Tully said " At this point what we're looking at is analysing the structure we've put in place and getting comfort around that, and then in the future, we'll decide if we're going to increase the allocation."
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