Ian Patrick

Sunsuper has awarded US based fund manager, Payden & Rygel, a $150 million mandate to manage a customised version of the Payden Absolute Return Investing (PARI) strategy.

Payden & Rygel is represented in the Australian market by Grant Samuel Funds Management (GSFM) and manages over $1.3bn in Absolute Return and Investment Grade Corporate portfolios on behalf of institutional and retail clients.

PARI is an actively managed global fixed income strategy that is unconstrained by traditional benchmarks. It aims to produce stable returns over time, regardless of how the overall market performs, and to provide a gross return of 2 – 3% per annum above the Bloomberg AusBond Bank Bill Index over time. By comparison, Sunsuper’s customised mandate will target an excess return (before fees) of 1.75%.

Sunsuper is one of Australia‘s largest and fastest growing super funds with $50 billion in funds under management and more than one million members. Chief Investment Officer, Ian Patrick, says 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,” Mr 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.”

The customised PARI strategy will be used as an additional alpha source alongside Sunsuper’s internally managed cash plus portfolio.

Charles Levinge, GSFM’s head of institutional business, says this is Payden & Rygel’s second absolute return fixed income mandate in the Australian market.

“Being awarded this mandate is not only a reflection of the continued interest we’re seeing in PARI but also Payden’s ability to work with clients to tailor and customise portfolios to meet their specific objectives,” Mr Levinge said.

The PARI approach has been developed and refined over more than nine years, and has over $7 billion in assets invested on behalf of clients globally.

The post Payden & Rygel wins Sunsuper mandate appeared first on AdviserVoice.