HESTA has appointed a Frontier Advisors senior staff member as its new general manager of portfolio construction and risk, under the fund’s reshaped leadership structure.
Michael Sommers has commenced in the role, where he will be responsible for managing the strategic asset allocation and risk budgeting process for the fund.
The appointment is part of an ongoing shake-up to the investment leadership team structure, with HESTA planning to internalise a number of asset management functions.
This year, it is set to implement its internalisation program for Australian equities, while cash and fixed-interest asset classes are planned to be underway in 2022.
HESTA chief investment officer Sonya Sawtell-Rickson said strengthening the fund’s portfolio construction and risk management was key to its overall investment strategy.
“Our asset pool is growing and Michael’s appointment will help us ensure HESTA continues to be well positioned as a leading global investor with a strong track record of performance,” she said.
Mr Sommers has joined HESTA after seven years as head of alternatives and derivatives at Frontier Advisors.
He was responsible for leading a team covering research and specialist advice to clients on derivative strategies, alternative investments, risk management and portfolio construction.
Prior to Frontier, he worked in London as executive director at Canadian Imperial Bank of Commerce, overseeing the market risk, management of all London trading desks as well as the global FX options desk.
Mr Sommers has also held senior market and credit risk roles at HBOS Treasury and Lloyd.
“I’m excited to join HESTA and be part of an innovative, leading investment team that has strong growth plans,” he said.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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