AGEST positions fund to ride volatility

Christine St Anne

Mon 04 Feb 2008

Industry superannuation fund AGEST has invested $150 million in Macquarie Funds Management's (MFM) True Index Cash Fund.

MFM previously managed the money in its enhanced cash option, however, due to the sub-prime crisis in the United States, the fund decided to shift to the index cash option.

"Members were not getting the type of returns that they expected from the enhanced cash option. This was because of the sub-prime issue in the US," AGEST chief executive Michael Seton said.

"Members wanted more certainty in their cash option. The index option will give them this certainty." 

The fund also appointed US fund manager Turner Investment Partners to manage a $30 million international share mandate.