Prime Super awards mandate to boutique manager

Prime Super has expanded its roster of domestic investment managers, awarding a new Australian equities mandate to Merlon Capital Partners.

The $8 billion fund will utilise Merlon's Concentrated Australian Share strategy, which focuses on high conviction, long-term investing and invests in companies that may be overlooked due to short term concerns or the pursuit of popular trends.

Prime Super has made several changes recently. In March it announced it was ending its long-standing relationship with PATRIZIA, appointing Frontier Advisors as its new asset consultant, effective June 1.

This follows a reduction in administration fees and costs, along with the streamlining of its investment menu.

Prime Super general manager, investments Michael McQueen said Merlon's appointment reflects the fund's focus on long-term outcomes for members.

"Merlon's contrarian approach, with a focus on capital preservation, will play an important role in seeking to deliver strong risk adjusted returns within our Australian equities portfolio over the long term," McQueen said.

"We look forward to working with Merlon Capital as we continue to strengthen and evolve our manager lineup."

Merlon Capital Partners, which became fully owned by its investment team in mid-2024 following a buyout from Fidante, said it has been actively bolstering its capabilities.

The firm recently added ex-Ellerston chief investment officer Chris Hall to its advisory board and client relationship manager Jack Dooley.

Merlon Capital co-founder and lead portfolio manager Neil Margolis said the mandate reflects a growing institutional interest in high conviction, active management within the Australian market.

"We are delighted to support Prime Super's members. Our approach is built on independent fundamental research and a long-term perspective, which is particularly relevant in the current environment, where valuation discipline and fundamentals are paramount to cutting through market volatility and noise," Margolis said.

"The addition of Chris and Jack reinforces our commitment to this philosophy and our aim to be a trusted partner for clients, helping them meet their goals."