(March-2003) Master ditches Invesco fixed interest mandate

The $300 million Master Superannuation Fund has terminated a $70 million fixed interest mandate with Invesco Australia and replaced it with Vanguard Investments Australia, after making significant changes to the mandate itself.

The restructured mandate now has a 70 per cent weighting to international sovereign passive hedged fixed interest and a 30 per cent weighting to Australian enhanced fixed interest. Previously the mandate was 70 per cent domestic fixed interest, 17 per cent actively hedged international fixed interest and 13 per cent cash.

Fund secretary Mark Sladden says the appointment was largely based on the pitch Vanguard made to the board of trustees.

“It wasn’t really a performance or fee related issue with Invesco itself. It’s just that the presentation Vanguard put to us on fees, performance, capabilities and services had more appeal to the trustees to warrant awarding the mandate to Vanguard,” he says.

Sladden expects the transition to take place by the end of March. “We’re not busting at the gut to move the assets but expect the transition to be completed within the next four weeks,” he says.