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Institutional mandates shrink

Local institutional investors appointed 313 mandates totaling $43 billion in 2020, down from $51 billion the year before, according to Rainmaker's latest Mandate Chaser report.

State Street was the biggest winner in institutional mandates in 2020, taking $5.1 billion from institutional investors, mostly across local and global equities.

IFM Investors was next, winning $2.5 billion. Majority of this was across international equities and alternatives ($1 billion each), with smaller wins in cash, fixed income and Australian equities.

It was followed by Macquarie ($2.4 billion), Alphinity ($2.1 billion), Lend Lease ($2 billion), First Sentier ($1.7 billion), WMC ($1.5 billion) and Robeco ($1.5 billion).

Rainmaker's Mandate Chaser report collects mandate data via investment surveys with non-profit superannuation funds (including industry, corporate, government funds), investment managers who appoint sub-advisors and implemented consultants.

By asset classes, the individual managers winning the most mandates were: Australian equities (Alphinity, Macquarie and Hyperion), international equities (Robeco, State Street, BlackRock), Australian fixed income (Macquarie, Ardea, Coolabah), alternatives (LGT, Ardea and IFM).

The most popular mandate asset class, alternatives, accounted for 47% of mandate appointments in the 12-month period, according to the report.

Asset consultant Frontier was associated with the most mandates during the year.

Superannuation funds Australian Catholic Super (34, up from 23 in 2019), Aware Super, ESS Super, LGIAsuper and NGS awarded the most mandates in the year.

Hostplus awarded the most mandates in 2019 with 35, but in 2020 it only gave out 12.

Read more: Rainmaker Mandate Chaser