Redpoint will manage an Australian shares index strategy within MLC’s flagship multi-asset portfolios, including MLC Horizon 2-7 and the MLC Horizon Inflation Plus portfolios. 

According to Redpoint, its index management approach is dynamic and applies a range of strategies to enhance return and capture the risk characteristics of the chosen index. 

Redpoint said its low-cost approach reduces the impact of transaction costs and taxation. 

Redpoint chief executive Tim Batho said the company is extremely pleased to have been selected to manage such a significant mandate for MLC’s key portfolios. 

“It’s testament to both the team’s experience in successfully managing large portfolios and the robustness of our investment approach in executing risk-efficient and cost-effective strategies,” said Mr Batho. 

MLC Australian equities portfolio manager Peter Sumner said MLC has appointed Redpoint as a manger in the Australian Shares Strategy because of the “quality and considerable experience of the investment team, which is led by chief investment officer Eric Smith”. 

“Eric was previously chief investment officer for Vanguard, where he managed MLC’s Australian and global index mandates for around 10 years, and is supported by seven experienced investment professionals,” said Mr Sumner. 

“This proven experience, and the risk and cost efficiencies of Redpoint’s approach, gives us greater flexibility to manage the portfolios for investors.”