State Super has announced it has awarded a large Australian equity income mandate to Omega Global Investors’ Smart Beta plus-based strategy.
The move would be expected to help offer a commercially attractive core equity portfolio with enhanced income and downside protection.
State Super’s senior investments manager, Andrew Huang, said the fund worked closely with Omega to help meet the needs of its large base of members approaching retirement age.
“Omega worked with us to design a well-integrated strategy that combines factor investing and an option overlay in a transparent way,” he said.
According to Omega’s portfolio manager, Andrew Gruskin, the key aspects of his firm’s approach included:
“Our strategy development required not only taking a holistic view of investable markets, but carefully interrogating the underlying factors that drive the stated investment outcomes for the benefit pf investors,” Gruskin said.
While not having a strategic asset allocation might be ‘uncomfortable’ for some investors, the Future Fund believes its unique investment approach helps the fund capture long-term value ahead of the curve.
The sovereign wealth fund grew $11.5 billion in the March quarter, according to its latest portfolio update, having previously voiced caution about inflation’s downward trajectory.
The property group, owned by industry super fund Aware Super, has announced two new projects with a total construction value of $320 million that will add more than 700 homes to Melbourne’s rental market.
While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their involvement in addressing the substantial capital requirements vary widely.
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