OnePath awards $210m in mandates

OnePath awarded about $210 million in two separate mandates that were previously managed by UBS Asset Management.

In December, UBS AM said it was transferring some of its investment management functions to external managers under new partnerships. Melbourne-based Yarra Capital Management took over the management of its Aussie equities funds and CBRE Clarion took over the management of UBS Property Securities Fund. UBS AM's small caps team launched a new boutique named Eiger Capital.

One of  UBS AM's clients for Aussie equities and property securities was the OnePath Tax Effective Income Fund which had $300 million at May end.

The fund's internal portfolio management team reviewed UBS as the underlying investment manager and decided to replace it earlier this year.

Nikko Asset Management picked up about $120 million to manage in Aussie equities for the fund. The global firm managed about $7.5 billion in Aussie equities at December end.

"They have a history of delivering income stream/dividends in accordance with stated investment objectives over the long term," OnePath said.

The fund also picked Carlos Cocaro and Damien Barrack's Sydney boutique Renaissance Property Securities to manage $90 million in Australian real estate investment trusts.

"[Renaissance] provided consistent outperformance since inception through seeking to identify mispriced stocks and to add value through the small cap of the AREIT market where stocks tend to be under researched. In particular, they have consistently exceeded the S&P/ASX 300 A-REIT benchmark (top quartile) over rolling three years," OnePath said.

"They are a small to medium size player in this market and are able to enter and exit stocks with relative ease. Therefore, they are able to capitalise on opportunities in AREITs which are often under-researched and under owned."

The fund retained UBS AM as a manager for cash and fixed interest. The changes were implemented in February.

ANZ sold its OnePath Pension and Investments business to IOOF but the deal has faced roadblocks with a May update saying if any conditions of the transfer are not met by October 17, either ANZ and IOOF can call off the sale.

ANZ also sold the OnePath life insurance business to Zurich which completed earlier this month..

Read more: UBS AMUBS Asset ManagementAREITIOOFCarlos CocaroCBRE ClarionDamien BarrackNikko Asset ManagementOnePath PensionOnePath Tax Effective Income FundRenaissance Property SecuritiesUBS Property Securities FundYarra Capital ManagementZurich
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