IOOF Holdings, as part of the consolidation of its United Funds Management and MultiMix units, awarded two investment mandates and terminated 16.
Merlon Capital Partners received a A$145 million (US$141.6 million) mandate for its domestic equities buy-write strategy, and Legg Mason, a A$100 million small-cap Australian equities mandate.
But the consolidation, which Steve Merlicek, IOOF’s chief investment officer, said was undertaken to achieve greater investment scale of the combined A$5.3 billion in assets, saw mandates terminated in all asset classes except alternatives and cash.
Terminated as Australian equities managers were Alleron Investment Management, SG Hiscock, Concord Capital, Tyndall Investment Management and Northcape Capital.
Managers now running the combined A$1.8 billion Australian equities portfolio, in addition to Merlon and Legg Mason, are Solaris Investment Management, Integrity Investment Management, AllianceBernstein, Perennial and BlackRock.
Terminated from international equities portfolios were The Boston Co., Perpetual Investments, GMO and Capital International.
Now, IOOF’s A$1.1 billion global equities exposure will be managed in an indexed-core, active-satellite structure with State Street Global Advisors being the passive manager and LSV Asset Management, Wellington Management and Axiom Investment Management running more specialized, high-conviction strategies, and Pareto Partners running a currency overlay.
PIMCO, Perennial and Loomis Sales now manage the combined portfolio’s A$1.3 billion.
Invesco lost international property mandates. Perennial, Challenger and Colonial First State will manage the new A$144 million Australian property portfolio, and Perennial and Cohen &Steers will run the A$147 million international property portfolio.
IOOF’s A$200 million in alternative investments, and its $A640 million in cash were unchanged.
Simon Mumme is editor of Investment magazine, Sydney.