The A$5 billion (US$4.65 billion) Local Government Superannuation Scheme, Sydney, terminated two real estate managers.
The fund terminated its direct domestic property mandate with FuturePlus, and hired a three-person team from the manager to manage the A$580 million portfolio.
Portfolio manager Brian Churchill and two of his three team members, Andrew Kim and Barbara Ramston, joined LGSS.
“We just terminated the agreement and offered certain people in the team to come across and run it for us. If they didn't accept the offer, we would have searched externally,” said Peter Lambert, LGSS chief executive. “We're now able to manage the portfolio more cheaply.”
The fund also terminated a $150 million offshore listed property mandate with Chifley Financial Services. LGSS has allocated the redeemed capital to AMP Capital Brookfield, the joint venture between AMP Capital Investors and Brookfield Investment Management, which invests in global listed property and infrastructure.
Simon Mumme is a writer with Investment & Technology, Sydney.
