The $3.6 billion Health Employees Super Trust Australia (HESTA) has made its first asset allocation to hedge funds after awarding three per cent of its core pooled fund (balanced fund) — or $50 million — to two absolute return fund-of-funds.
The identity of the managers was not revealed at the time of going to print, as the near half million member fund is still working through legal and due diligence issues.
According to investment and governance manager, Lisa Fazio, the new mandates will “hopefully maximise returns, minimise risk and add a greater level of diversity to the fund”.
HESTA will consider further allocations to hedge funds, which will be listed as a separate asset class in its investment portfolio, but Fazio says any new mandates are unlikely to be awarded before the group’s annual strategic review, scheduled for December.
“Because of the type of investment we’re going to see how things go before making any further decisions to allocate more money,” she says.
