TWU Super, Melbourne, Australia, hired SG Hiscock for a “benchmark unaware” Australian property securities mandate.
The move returns the A$2.5 billion (US$2.47 billion) fund's listed property portfolio to a 50-50 split between domestic and overseas securities.
Two years ago, the fund terminated the domestic component of the portfolio, on the advice of consultant JANA Investment Advisors, according to TWU Chief Investment Officer Andrew Killen.
Prices in the sector have declined to the point where “listed property has become marginally more attractive,” said Ken Marshman, head of investment outcomes at JANA.
Funding for the SG Hiscock hiring came from terminating a mandate with Perennial's Global Property Securities Trust.
Meanwhile, the fund also increased its exposure to emerging markets to 20% from 15% of its overseas equities portfolio; the assets will go to Russell Investments' emerging markets multimanager trust.
Michael Bailey is editor of I&T News, Sydney.