Energy Super has announced it has invested $180 million with US based fund manager Payden & Rygel via the Australian domiciled Payden Global Income Opportunities Fund (PGIOF), which was established in 2012, and would offer Payden’s Absolute Return investment (PARI) strategy to Australian investors.
Payden is represented in the Australian market by Grant Samuel Funds Management (GSFM) and manages $1.9 billion in absolute return and investment grade corporate portfolios for both institutional and retail clients.
This would be Payden’s third institutional absolute fixed income client in the Australian market, the firm said.
GSFM’s head of institutional business, Charles Levinge stressed that PGIOF would sit in Energy Super’s defensive alternatives portfolio, providing a core income stream from global fixed income with emphasis on downside risk controls combined with shorter-term tactical views.
“The cornerstone of Payden’s investment philosophy is that active management of fixed income investments should focus on managing risk consistent with the spirit of the investment guidelines to protect investors capital and generate dependable, repeatable returns,” he said.
“This latest investment is a reflection of the growing interest in the PARI strategy in the Australian market, and Payden’s ability to work with Australian institutions to meet their portfolio objectives.
The PARI strategy aimed to produce stable returns, regardless of how the overall market performs, and to provide a gross return of two to three per cent per annum above the Bloomberg AusBond Bank Bill Index over time, the firm said.
