UniSuper has appointed specialist asset manager, Revolution Asset Management, to oversee its private debt portfolio in Australia and New Zealand.
With over 620,000 members and more than $115 billion in funds under management, UniSuper’s managed portfolio would aim to provide stable income from senior secured loans.
The strategy was tracking above its target return of cash plus 4-5 per cent per annum and would seek to achieve this return with low volatility.
Corporate leveraged loans, private asset-backed securities and real estate loans, excluding construction or development, offered the most compelling value.
Bob Sahota, chief investment officer at Revolution Asset Management, said: “I am delighted on behalf of the team at Revolution Asset Management to have been appointed by a super fund that has a long and proud history of managing the retirement savings for generations of Australians.
“Private debt has been an important component of institutional and wealth portfolios, and in the current uncertain environment can help to further diversify risk and deliver stable income. We look forward to a long and mutually beneficial relationship that will grow over the coming years.”
Revolution Asset Management’s strategy focused on lending to firms with market leading positions, high barriers to entry and transparent cashflows.
The company had raised more than $2.5 billion from institutional, wholesale and family office investors, with its Australian and New Zealand private debt portfolio returning above its stated target at 9.6 per cent.
