Global firm secures $500m mandate

A global fixed income manager has secured a $500 million mandate from a major industry superannuation fund with around two million members.

Payden & Rygel was awarded the mandate from Rest, with its Payden Absolute Return Investment (PARI) strategy selected to form part of the superannuation fund's overall portfolio.

The PARI strategy is represented in Australian and New Zealand markets by GSFM.

GSFM head of institutional business, Charles Levinge said the mandate will see the PARI strategy sit within Rest's absolute return asset class.

"The key focus of the PARI strategy is on downside risk protection - with low correlation to equities, bonds and mainstream credit - and an overarching investment philosophy to preserve capital," he said.

"It is a good fit with Rest's portfolio. We are looking forward to partnering with Rest to deliver the best investment outcomes for its members."

Levinge added the investment strategy aims to limit volatility and outperform the benchmark by using a multi-sector, absolute return fixed income approach.

GSFM said the portfolio aims to outperform the Bloomberg AusBond Bank Bill Index by 2-3% gross per annum over a three year period.

"The central pillar of the strategy is income generated from a highly diversified and rigorously vetted portfolio of global bonds. This stream of income provides the foundation from which the team adds shorter-term tactical views," Levinge said.

"Risk management is also key to the strategy's investment philosophy. It relies heavily on the team of analysts and strategists to thoroughly understand the entities in which they invest and determine sectors that provide the most risk-adjusted value opportunities."

GSFM said it has an eight year long relationship with Payden & Rygel who manage over $2.8 billion in Absolute Return and Global Corporate portfolios on behalf of Australian and Institutional retail clients.

Payden & Rygel originated in Los Angeles and is an independent global investment manager.  It currently has $175 billion in funds under management.

Rest is an industry superannuation fund and currently has around two million members with $57 billion in funds under management.

Read more: GSFMPaydenRygelCharles LevingeBloomberg AusBond Bank Bill Index
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