Queensland superannuation fund LGIAsuper has appointed Morgan Stanley Investment Management to run an emerging and frontier markets portfolio.
Morgan Stanley’s Emerging Markets Leaders Strategy, which had assets under management of $500 million as at 31 March 2016, has been selected by LGIAsuper’s investment committee.
The strategy holds between 30 and 40 emerging and frontier market stocks at any given time, according to Morgan Stanley Investment Management.
The fund targets “lower volatility and uses secular and structural themes that support steady earnings for the companies they invest in to deliver sustainable, increased returns on invested capital”.
LGIAsuper chief executive David Todd said the strategy was selected because it attempts to find “pockets of growth” in a low-growth environment.
“The team’s franchise style investing criteria also offers LGIAsuper members potential downside protection in the event of further volatility,” Mr Todd said.