'452' has been the magic number for the transition management industry, as institutional investors continue to redistribute mandates pulled from the Sydney-based Australian equities value boutique.
REST Superannuation, Sydney, which was the largest institutional investor in 452 Capital (outside of its part-owner Commonwealth Bank/Colonial First State), is understood to have redistributed its nearly A$1 billion (US$987.96 million) mandate among its other existing Australian equity managers, as well as appointing a new one, Greencape Capital.
CARE Superannuation, Melbourne, an industry fund which had nearly A$200 million invested with 452, had terminated the mandate and in mid-October was finalizing an investment management agreement with a new Australian equities manager, according to Chief Investment Officer Greg Nolan. The manager was not identified.
The NZ$3.5 billion (US$2.6 billion) Retirement Benefits Fund of Tasmania, Hobart, meanwhile, has just funded the Australian equity team at Schroder Investment Management with approximately NZ$180 million pulled from 452.
HOSTPLUS, South Carlton, had been one of the first to offload its 452 exposure, redistributing its A$300 million mandate among existing managers just days after the Aug. 18 announcement that the two most senior investment personnel in co-founder Peter Morgan's absence — Mary Feros and Suellen Morgan — were stepping down, as was CEO Lyndsey Hancock. (Mr. Morgan took a leave in July 2009 for health reasons.)
Colonial First State also was quick out of the blocks, despite its “affiliates” business owning 30% of 452 Capital. Its retail mandates with the manager were taken over by Integrity Investment Management and CFS Global Asset Management.
Transition managers have said the problems at 452 have been the biggest trigger for transitions since a chunk of Barclays Global Investors mandates were cancelled, following that manager's merger with BlackRock and associated personnel changes.
Calls to 452 Capital's Sydney office were greeted with a recorded message, and no reply had been received at presstime.
Michael Bailey is editor of InvestmentI&T News, Sydney.