State Super, a A$44 billion ($31.2 billion), Sydney-based super fund, awarded a China equities mandate to Ninety One, the money manager formerly known as Investec Asset Management, confirmed Andrew Huang, senior investment manager at State Super.
Mr. Huang declined to say how big the fund's "first country-specific mandate outside of Australia" was.
In a Ninety One news release, Mr. Huang said the money manager's "4Factor 'All-China' equity strategy" — covering China's domestically listed A shares as well as Hong Kong-listed H shares and U.S.-listed ADRs — won out in an extensive search for State Super's global best ideas satellite manager portfolio, due to a combination of high potential for delivering alpha while diversifying beta.
Justin Cowper, Ninety One's head of institutional business for the Asia-Pacific and Middle East regions, noted that the Australian economy's extensive links with China's economy have long deterred Australian institutional investors from making standalone allocations to the country as well.
State Super has "led the way in evolving from this thinking and seeing the potential in the China A shares market, which allows investors access to the true nature of the Chinese market," he said.