RBF awards fixed income mandate to FIIG

Retirement Benefits Fund (RBF) has awarded a $300 million term deposit mandate to fixed income specialist FIIG Securities.

The Tasmanian public sector fund approached FIIG for access to its network of more than 60 authorised deposit-taking institutions (ADIs) and has confirmed the mandate after due diligence.

RBF chose FIIG due to its proprietary fixed income and deposit portfolio optimisation systems, which can be tailored to individual investment needs and portfolio construction requirements, it said.

FIIG will be responsible for ongoing reporting, maintaining the transparency of data held with each bank, and communicating market intelligence.

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RBF chief investment officer Ian Lundy said FIIG's expertise and information technology infrastructure were pivotal to the appointment.

"By awarding a mandate to FIIG we avoid the need for costly internal infrastructure and systems. This is much simpler and more cost effective than if we implemented their recommendations ourselves, and has clear benefits for our members," he said.

FIIG executive director Bill Keogh said the move was part of a larger trend by industry funds keen for passive cash holdings. The passive mandate would be invested in term deposits across several banks and ADIs, according to Keogh.

"An optimised portfolio of term deposits provides a much more effective return than actively managed cash portfolios at much lower costs, which in turn directly benefits investors and members," he said.

Keogh said FIIG had implemented the first stage of a major new Microsoft Dynamics-based infrastructure project to bolster its money market team and technology infrastructure.

RBF provides superannuation and financial advice services to more than 77,000 members and manages $4.1 billion in investments.