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(May-2004) Health Super shakes up equities
HealthSuper has completed the restructuring of its Australian and international equities portfolios with the appointment of three new Australian and four new international equities managers.
The restructure of the Australian equities portfolio has resulted in the appointment of Independent Asset Management, Lazard Asset Management Pacific and WHTM Asset Management with each of the new managers having been awarded mandates of approximately $160 million or 15 per cent of Health Super’s Australian equities portfolio.
Health Super investment manager Brendon Shepherd says that the fund’s existing managers, Schroders and GMO, are being retained within the Australian equities structure at a higher weighting.
On the international equities front, Health Super has appointed Wellington Management Company, Alliance Capital, Bernstein and Morgan Stanley, three of which have been awarded mandates of approximately $150 million or 14 per cent of the fund international portfolio, while Wellington’s mandate is $250 million.
Shepherd says that Barclays Global Investors and Colonial First State (emerging markets) have been retained in the international equities investment structure.
He says Health Super's restructuring of its Australian and international equities portfolios followed a review of the equities asset classes in consultation with the fund's asset consultant, Watson Wyatt.
Shepherd says that review indicated the fund could achieve a higher level of return for its members under the new structure with only a marginal increase in risk.
He acknowledges that the newly appointed managers can be described as "boutique" but argues that boutique organisations have certain characteristics that make them attractive to investors, including the ability to move in an out of position with minimal market impact.
AUTHOR
Mike Taylor
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