Colonial First State has awarded a Sydney-based boutique investment manager a $55 million mandate to multi-manage its Australian small-cap portfolio.
Eight Investment Partners has replaced Contango Asset Management as the portfolio’s fifth asset manager. The firm will now manage $55 million of the $338 million portfolio.
Speaking to InvestorDaily, Colonial First State portfolio manager Sonia Bluzmanis said: “We continually review the portfolios to be sure that we have the right mix of high-quality managers.”
“Each of those managers brings some sort of unique process or skill. In combination we’re able to deliver more consistent return outcomes for our investors.
“We also seek to invest with managers which aren’t always available to retail to be able to offer a unique offering.
“The small-cap space is quite challenging because there’s limited high-quality managers with capacity,” she said.
Ms Bluzmanis said Eight Investment Partners was selected because “they’re high quality, there’s depth of experience there, a strong track record, and we really feel that there’s a competitive advantage in their ability to identify unique investment opportunities.”
The Colonial First State FirstChoice Australian Small Companies portfolio had $338 million in assets as at 31 July 2015.