Non-Government Schools Superannuation Fund, Adelaide, Australia, allocated A$30 million (US$29.6 million) to Colonial First State Global Asset Management’s Global Resources Fund.
NGS Chief Investment Officer Tim Hughes said the resources fund was an indirect way of accessing emerging markets growth, by tapping into their demand for hard commodities as they industrialize.
“The mandate we have given to CFS GAM is totally benchmark unaware … only around 10% of the world’s resources industry is in Australia, and we see major opportunities in places like Mongolia, Africa, Latin America and Kazakhstan,” Mr. Hughes said.
NGS Super, with A$3 billion in total assets, is believed to have funded the global resources mandate with a redemption from its Australian equities portfolio.
Michael Bailey is editor of InvestmentI&T News, Sydney.