A global manager distributed in Australia by Credit Suisse has won a $100 million allocation from an industry fund as it initiates a position in distressed debt.
The $10 billion Australian Catholic Superannuation and Retirement Fund has made an inaugural allocation to the asset class through York Capital Management.
ACSRF chief investment officer Michael Block told Financial Standard the $10 billion fund has been cutting its allocations to equities (both Aussie and international), and allocating more to real assets and debt strategies.
"Equities, bonds and many traditional asset classes are expensive. Additionally, if there is a downturn at some stage, we want be to be ready to take advantage of the situation," Block said.
The allocation to York comes after a recommendation from ACSRF's asset consultant, Frontier Advisors.
"It is a small, opportunistic allocation, currently representing under 1% of our total assets under management or $70 million to $100 million, with room to increase later," he said.
ACSRF's bond option, which is among the best performing bond superannuation fixed income offerings, is managed by Ardea, Coolabah and Kapstream. The fund is also invested in Bob Sahota's private debt fund.