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Commonwealth Bank Group Superannuation signs Newton for real-return strategy

The A$10 billion ($7.6 billion) Commonwealth Bank Group Superannuation plan hired Newton Investment Management to run “significant mandate” in a real-return strategy, the London-based affiliate of BNY Mellon Investment Management announced Monday.

A spokeswoman for BNY Mellon and a spokesman for Commonwealth Bank, both based in Sydney, separately declined to provide further details about the allocation, including the size. However, the BNY Mellon spokeswoman confirmed that the allocation was the first for Newton’s “unconstrained, global multiasset” strategy from an Australian asset owner.

The real-return strategy, which targets an annualized return of LIBOR + 4 percentage points over a five-year period, currently has roughly A$26 billion in client assets.

The Commonwealth Bank spokesman declined to discuss what role the superannuation fund is looking for Newton’s strategy to play within the broader portfolio.