Sunsuper has awarded a $150 million mandate to US based fund manager Payden & Rygel, who will manage a customised version of its absolute return fixed income strategy for the super fund.
The Payden Absolute Return Investing (PARI) strategy would be an actively managed global fixed income strategy that is unconstrained by traditional benchmarks.
It would aim to produce stable returns over time, regardless of how the overall market performs, and to provide a gross return of 2 to 3 per cent a year above the Bloomberg AusBond Bank Bill Index over time.
By comparison, Sunsuper said its customised mandate will target an excess return, before fees, of 1.75 per cent.
Sunsuper chief investment officer, Ian Patrick, said this mandate will benefit members investing in the fund’s Balanced, Retirement and Conservative options.
“This mandate is one of the many innovative ways we’re adding value to our members’ investment returns to meet their retirement savings needs,” Patrick said.
“Sunsuper’s size and experienced investment team allows us to access specialised overseas investment strategies and tailor portfolios that generate an attractive risk/return profile, provide diversification and deliver greater value for money.”
This was Payden & Rygel’s second absolute return fixed income mandate in the Australian market.
Payden & Rygel was represented in the Australian market by Grant Samuel Funds Management.
