AUSTRALIA - QIC is to close its implemented manager-of-managers Australian equities product and its directly managed large cap Australian equities products because of lack of demand.
The two products account for around just 1% of the Brisbane-based institutional fund manager's A$57bn (US$60.2bn) assets under management.
QIC attributed the falling demand for the product to the fact that institutional investors that require assistance with selecting and managing Australian equities managers "typically look to their investment consultant for this service, rather than QIC".
The firm said it closed its large cap Australian equities product because it had not "attracted investor interest, in what is a very crowded market". QIC said there are more than 150 similar products on the market.
The closure of these two products will not affect QIC's Australian small cap capabilities, the firm said. The two heads of the closed product lines, Paul Barnes, head of Australian large cap, and Stuart Birkett, head of implemented strategies, have left QIC. The closure affects up to "half a dozen" employees in total, a QIC spokesman said, with some being reassigned to other positions.
"Changing market dynamics and demand is the driving force behind QIC's decision to close these products," said Hazel McNeilage, QIC head of funds management.
"QIC is focusing on products and solutions for which it is experiencing increasing demand from local and international institutional investors. In addition to small cap Australian equities, there is strong interest in QIC's absolute return and inflation related fixed interest strategies, currency overlays, real estate, infrastructure and dynamic lifecycle strategies."
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