Asset Super has overhauled its fixed income portfolio, terminating a $115 million passive international bond mandate with State Street Global Advisors (SSgA).
SSgA had previously managed the entire fixed income portfolio on behalf of Asset Super.
The fixed income portfolio will be split among four investment managers including Franklin Templeton, Mondrian, Kapstream and BlackRock.
"On the advice of Mercer we decided to move away from a large passive mandate into active management," Asset Super chief executive John Paul said.
The fund will look at investing in global credit including corporate debt.
"With governments around the world now taking on large amounts of debt we decided it was time to tilt the portfolio away from sovereign bonds to corporate bonds," Paul said.
Asset Super has also changed its manager line-up for its cash portfolio.
The fund has terminated its $55 million cash mandate with Perpetual.
"We wanted the fund to have access to a more liquid product," Paul said.
The mandate was invested in Perpetual's Exact Cash Fund and will now be re-invested with Colonial First State. Asset Super is also looking to redeem an existing cash mandate with ING.
