VicSuper awards $100m mandate

VicSuper awards $100m mandate

VicSuper has awarded a $100 million mandate to global fixed interest manager Payden & Rygel to manage an absolute return investment portfolio.

In a statement from the super fund, VicSuper said the mandate will form part of its alternatives strategy.

This is the second mandate VicSuper has awarded to Payden & Rygel in the past three years.

VicSuper chief investment officer Oscar Fabian said the fund is pleased to extend its relationship with the global fixed income manager.

“This is an innovative approach with the portfolio comprising the best ideas of each of P&R’s underlying specialist sector teams,” Mr Fabian said.

“The strategy is designed to achieve a positive return with a low sensitivity to interest rates.”

Mr Fabian also pointed out that the fund is well positioned for an inevitable increase in interest rates.

“The debt portion of our fund continues to perform well. We believe however, that the current economic conditions will inevitably lead the Federal Reserve to raise interest rates,” Mr Fabian said.

“The introduction of this new mandate with its shorter duration ensures that our fund is well positioned when they do,” he said.

VicSuper pointed out Payden & Rygel received an initial mandate of $110 million in 2012 to manage a portfolio of diversified global fixed interest assets covering a mix of investment grade bonds, high yield and emerging market debt.

“This portfolio has grown to in excess of $300 million today,” the statement from VicSuper said.

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