Four managers have been cut under legalsuper's latest investment changes.
Industry fund legalsuper has continued its manager line-up reshuffle, terminating four managers across a variety of portfolios.
Genesis Investment Management has become the fund's only emerging markets manager, after Marvin & Palmer Associates and Essemplia's mandates were terminated.
The proceeds of the redemptions, which were around $28 million, have been redistributed to Genesis, which now manages $30 million on behalf of legalsuper.
The fund has also terminated Wellington Management, which oversaw money in the global equity portion of the portfolio. The $30 million in proceeds were redistributed to MFS Investment Management.
Finally, BlackRock's $36 million fixed interest mandate was terminated, in part due to the Barclays Global Investors merger.
"This prompted us to look at the mandate more closely," legalsuper chief executive Andrew Proebstl said.
The proceeds were reallocated across existing managers, with PIMCO scoring 55 per cent and UBS snatching 45 per cent.
Proebstl said the changes were part of a process to rationalise the number of managers the fund had after its recent mergers.
"We are building a level of funds under management with less managers," he said.
He said the process was still underway and it was likely there would be more adjustments in the manager line-up.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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