The A$16 billion (US$15.8 billion) Sunsuper, Brisbane, Australia, allocated an additional A$200 million to emerging market equities.
A search for active emerging markets managers is under way, under the direction of international equities portfolio manager Josh Bloom.
But the fund is achieving the increased exposure now through exchange-traded funds selected by its transition manager while it investigates whether any active managers “make sense,” according to Chief Investment Officer David Hartley.
Accessing emerging markets through ETFs “is working for us for now,” Mr. Hartley said, explaining the transition manager it was using for this deal — Russell Investments — had been instructed to buy “whatever ETFs look best on the day.”
The A$200 million boost takes the emerging markets component of its offshore equity allocation to approximately 20%, Mr. Hartley said.
Michael Bailey is editor of I&T News, Sydney.
