Challenger Managed Investments has appointed SG Hiscock & Company as manager of two of its real estate investment trust (REIT) funds.
SG Hiscock & Company will manage the Challenger Premier Property Securities Fund and the Challenger Wholesale Property Fund.
The funds have more than $500 million in assets under management, according to SG Hiscock chief executive Steve Hiscock.
They were previously managed by an in-house property investment team at Challenger, led by portfolio manager John Longo.
Longo and two other staff will now leave Challenger.
In April this year, Challenger's property team lost co-portfolio manager John White, who joined real estate investment management firm Heitman as Asia Pacific real estate securities managing director.
The departure of White led MLC to terminate a $200 million mandate with the Challenger property team in August. The mandate is now managed by Resolution Capital.
Challenger will remain the responsible entity of the REIT funds.
Challenger's Hybrid Property Fund and Global Property Securities Fund are not part of the mandate awarded to SG Hiscock and will continue to be managed by Challenger.
"SG Hiscock & Company is a highly rated funds management boutique business with a strong record in managing real estate funds," Challenger joint chief executive funds management Rob Adams said.
"Principal Stephen Hiscock has an impressive 20-year record of generating returns over the AREIT index and we are confident that SG Hiscock & Company's approach is well placed to achieve outperformance in these funds," Adams said.
Hiscock said the new mandate will prompt the firm to hire additional staff and that it expects to appoint a portfolio manager.
"We are expecting to appoint an additional resource in the next few weeks," Hiscock said.
