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AvSuper drops Wellington for Independent Franchise Partnership
AvSuper has switched an international equities mandate from US firm Wellington Management to Independent Franchise Partnership (IFP) following a recent review.
AvSuper's international equities portfolio makes up 25 per cent of about $1.15 billion of total funds under management, of which the IFP mandate makes up $52 million, according to AvSuper chief executive Michelle Griffiths.
Wellington GRE is being terminated to make room for the IFP placement, which is a much more concentrated investment, she said.
The switch reflects changes to the underlying asset allocation determined by the fund's investment committee following a review of AvSuper's international equities sector, performed with the fund's investment advisers, JANA, over several months, she said.
As the fund has grown it has become better able to construct an active portfolio using specialist fund managers, as it did with the allocation of an emerging markets mandate to Genesis last year, Griffiths said.
AvSuper described IFP as a global equities manager that aims to generate attractive investment returns while minimising business and valuation risk using the purchase of franchise businesses as its tool.
The AvSuper Investment Committee believes IFP's portfolio of companies with a competitive advantage and dominant intangible assets should earn good long-term returns with a below average absolute volatility.
AUTHOR
Mike Taylor
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