AvSuper, Canberra, Australia, allocated A$25 million (US$22.5 million) to an emerging markets trust run by Genesis Investment Management.
This is the A$1 billion fund's first dedicated investment in emerging markets and raises its emerging markets allocation to 12% of its international equities portfolio from 5%.
Previously, AvSuper gained a slight exposure to emerging markets through its investments with global equity managers. “But now we've decided to get a more significant exposure and use an experienced, dedicated manager,” said CEO Michelle Griffiths.
The investment is among those instigated by a review of the fund's portfolio made by JANA Investment Advisers after it replaced Russell as the fund's asset consultant seven months ago. In January, AvSuper awarded a A$30 million mandate to global equities manager Walter Scott.
Simon Mumme is a reporter with Investment & Technology in Sydney.
