Our Fund Managers
Barclays Global Investors Australia Limited
Australian Equities
Australian Fixed Interest
Barclays Global Investors (BGI) is a global investment management company providing a broad range of risk controlled active and index strategies worldwide. Since the early 1970s, Barclays Global Investors has grown to become one of the world’s largest investment managers with over A$2 trillion under management globally (as at 30 June 2007), serving over 2,900 clients worldwide. Its global network of offices spans the world's market centres, giving BGI the capability both to invest worldwide and serve the particular needs of institutional clients in any locality.
Based in Sydney, BGI Australia (BGIA) has over A$47 billion in assets currently under management (as at 30 June 2007). BGI Australia services a range of clients including Australian corporations; industry, public sector and superannuation funds; master funds; and wrap account distributors.
A single global investment philosophy underlies all BGI’s investment strategies. BGI believes that an optimal investment outcome can best be achieved through Total Performance Management – understanding, measuring, forecasting and managing the three dimensions of investment performance – return, risk and cost. This is achieved by employing knowledgeable investment professionals and leveraging their skills through the extensive use of technology.
BGI is owned by Barclays PLC, one of the UK’s largest companies, and one of the world's foremost providers of financial services with operations in over 60 countries worldwide.
Walter Scott & Partners Limited
International Equities
Walter Scott & Partners Limited (WSPL) was established in 1983 as an investment management firm specialising in global, international and regional equity investment mandates for institutional clients. The majority of the firm's clients are North American domiciled pension plans and similar institutions. More recently the firm has added clients in Australia, Japan and Europe. Global equity mandates have been at the core of the firm's activities since 1985. WSPL operates from one location in Edinburgh. As of 30 June 2007 client assets under management were A$39 billion.
WSPL has the investment philosophy that the long-term return earned from investing in a company's shares will be primarily determined by the amount of wealth that the company generates internally. WSPL's investment objective is to deliver superior long term real, after inflation returns. To achieve this, WSPL identify, analyse and invest in companies that have high internal rates of return and are growing at above average rates. The research approach is focused on stock selection, and the resultant geographic and industry structure of WSPL portfolios rarely mirrors the composition of benchmark indices.
Since 2 October 2006 WSPL has been a wholly owned subsidiary of BNY-Mellon Financial Corporation (Mellon). There has been no change in its investment activities as a result. In common with Mellon's other investment management subsidiaries, WSPL operates autonomously in terms of its business activities, investment research, portfolio management and investment administration and all other elements that impinge directly upon the investment services provided to clients. WSPL does not co-operate with other Mellon subsidiaries in its investment activities. The investment decisions reflected within WSPL client portfolios reflect its independent investment research.
Wellington Management Company LLP
International Equities
Founded in 1928, Wellington Management Company, LLP is one of the world’s largest independent investment management firms, and is a privately held partnership whose sole business is investment management. The firm is owned by 98 partners, all of whom are active in business of the firm. The history of the firm can be traced to the 1928 formation of the Wellington Fund, the first balanced mutual fund in the United States. With client assets totalling over A$704 billion under management as at 30 June 2007, the firm serves as investment advisor for over 1,400 clients based in over 40 countries.
The objective of the Global Research Equity Portfolio is to achieve long-term, total return in excess of the MSCI World (ex-Australia) Index through bottom-up security selection. The style diversified portfolio invests in equity securities of companies worldwide, emphasizing those which have above-average potential for capital appreciation. Wellington Management believes an industry-focused, bottom-up approach to managing a global equity portfolio can produce superior returns over time.
Challenger Managed Investments Limited
Australian Listed Property Trusts
Challenger is an established player in Australian financial services. Challenger offers a broad spectrum of financial products and services, including a range of quality investment alternatives across a variety of asset classes and different investment styles.
Challenger's investment approach identifies the major trends in the economy, and looks at how these trends will influence financial and property markets. By analyzing both global and domestic economic prospects, Challenger aims to position investment portfolios to take advantage of future economic developments. The level of exposure to a sector (for example, retail or office) is based on their top-down business cycle and property market analysis, combined with bottom-up company analysis. Challenger's bottom-up fundamental analysis allows them to identify those stocks that they expect will deliver superior performance over the medium to long term.
Vanguard Investments Australia Ltd.
Australian Equities
Rebalancing Manager
International Fixed Interest
Australian Listed Property Trusts
Cash
Established in 1975, The Vanguard Group Inc (US) manages over A$1.4 trillion and is one of the largest investment management companies in the world. Vanguard Investments Australia is a wholly owned subsidiary of The Vanguard Group Inc, and combines the skills of its team of Australian investment professionals with the strength of its parent.
In Australia, Vanguard has A$65 billion of funds under management as at 30 June 2007 and offers index funds in all major asset classes, including diversifed funds. Over the last 25 years, indexing has become one of the mainstays of institutional portfolios. Vanguard believe that by adopting a buy and hold approach, the costs of investing can be significantly reduced over time and lead to better returns for investors in the long term, especially on an after tax basis. As a guide, Vanguard's products are generally less than half the cost of comparable actively managed products.
Beyond its indexing sector specialists capabilities, Vanguard has developed a portfolio 'rebalancing' service. This service has been tailored to suit our investment strategies and effectively and efficiently controls and directs all cash flows. This results in fewer transactions, lower costs and ensures the strategic asset allocation of each sector trust is maintained.
PIMCO Australia Pty Limited
International Fixed Interest
Founded in 1971, PIMCO has grown to be one of the largest specialist fixed interest managers in the world with A$816 billion of assets under management. PIMCO has its head office in Newport Beach, California and offices in Canada, Hong Kong, London, Munich, Tokyo, Sydney, and Singapore.
PIMCO has managed Australian client portfolios since 1996 and established a Sydney office in 1998. PIMCO managed over A$21 billion of fixed income portfolios for Australian and New Zealand investors as at 30 June 2007.
In implementing this mandate, PIMCO applies a wide range of strategies including duration, credit analysis, relative value analysis, sector rotation and security selection. They emphasize active decision making with a long term focus. PIMCO avoids extreme swings in duration or maturity in order to create a low volatility stream of returns.
Aberdeen Fund Managers Australia Limited
Enhanced Cash
Aberdeen Fund Managers Australia Limited is a wholly-owned, Australian-based subsidiary of Aberdeen Asset Management PLC, a public company listed on the London Stock Exchange. Aberdeen Fund Managers Australia Limited was acquired from Deutsche Bank AG on 1 June 2007. This acquisition involved traditional Australian equities and Australian fixed income funds management activities, including six Registered Management Investment Schemes.
Aberdeen Asset Management has had a presence in Australia since its acquisition of a local funds management company in December 2000.
Aberdeen Asset Management PLC was established in its current form in 1983 and gained a listing on the London Stock Exchange in 1991. Worldwide, the Aberdeen Group manages funds in excess of over A$200 billion (as at 30 June 2007) for a range of individual and institutional clients, offering a range of global, regional and single country products for both equities and fixed interest.
The Aberdeen Group has offices in the USA, UK, Europe, Singapore, Hong Kong, Thailand, Malaysia, Japan and Australia. The Aberdeen Group’s exclusive focus is funds management and it is firmly committed to developing niche expertise appropriate to each market in which it operates.
Orion Asset Management Ltd.
Australian Equities
Orion Asset Management is a boutique fund manager, providing high quality equity investment products to the wholesale and retail markets in Australia. It is a small, efficient, and flexible operation with a strong investment culture.
Orion is regarded as a growth-style manager, and identifies mis-priced stocks via a rigorous bottom-up fundamental research process, intensive use of technology, and proprietary valuation techniques.
The company was founded late 2002 by Tim Ryan, who has a long and successful track record in the investment industry. Tim was joined in early 2003 by John Lobb and Dushko Bajic, both former colleagues with extensive experience in senior investment roles. Orion is 42% owned by Treasury Group, a company listed on the Australian Stock Exchange, and 58% by staff. As at 30 June 2007, the firm had approximately A$6 billion under management.
State Street Global Advisors
Currency
State Street Global Advisors, the institutional asset management arm of State Street Corporation, has been providing comprehensive investment management services to investors in world markets for over 20 years. As at 30 June 2007, State Street Global Advisors (SSgA) had funds under management globally of over A$2.3 trillion across a range of investment strategies and markets.
SSgA Australia, Limited is the Australian affiliate of the SSgA group. SSgA Australia had funds under management of over A$75.5 billion, on behalf of Australian and New Zealand based clients, as at 30 June 2007. SSgA has many years experience, both domestically and globally, in managing currency overlays. Additionally, SSgA Australia, Limited manages the single largest asset allocation overlay mandate (incorporating currency overlay) in Australia. SSgA Australia, Limited is the currency manager for us and utilises rolling currency forward contracts with the objective of hedging 50% of the active currency positions of our underlying international equities.
Colonial First State Investments Limited
Australian Fixed Interest
Colonial First State Global Asset Management (CFS GAM) is the consolidated asset management division of the Commonwealth Bank of Australia Group.
With more than $A139 billion (as at 30 June 2007) in funds under management across domestic and global equities, hedge funds, property securities, fixed interest, credit, private equity and infrastructure, CFS GAM is the largest asset manager in Australia of Australian sourced funds.
CFS GAM's overriding objective when investing in fixed interest markets is to maximize the income the funds earn over the longer term. This philosophy comes from the nature of fixed interest securities, which have a known income stream, termination date and termination value. CFS GAM believes the best aim in managing this asset class is to maximize income rather than trying to guess the capital value of securities over time. Its philosophy is to invest in securities that pay the most attractive yields after taking security and portfolio risk into account. It does not seek alpha from speculative decisions about future changes in yields or the possible time path of the capital value of securities, but from simple strategies that buy assets when they are paying a decent income and sell assets that are not providing enough of a pay-off for investment risk.
AllianceBernstein Investment Management Australia Limited
Australian Equities
International Equities
AllianceBernstein L.P. (AllianceBernstein) is one of the largest publicly traded global asset management firms in the world. AllianceBernstein provides diversified investment management services that include global and domestic growth and value equities, blend strategies and fixed income services to institutional, high net worth and retail clients worldwide. The organisation has over 5,000 employees worldwide, with offices in 47 cities across 24 countries. As at 30 June 2007, the firm managed A$875 billion in assets.
Bernstein Value Equities’ philosophy is based on research in behavioural finance that shows investors tend to overreact to short-term events. When a company’s earnings are faltering investors frequently extrapolate this weakness into the future. However, management often takes corrective action and earnings improve. Their ability to determine whether managements’ strategies are likely to succeed and to act on views different from consensus have been the lynchpins of their success over the past three decades.
The Bernstein Global Value strategy seeks to deliver premium returns by buying stocks priced below their long-term earnings power, as forecast by the company’s in-house analysts. Proprietary quantitative tools are used to aid risk control and portfolio construction. The broadly diversified portfolio, which typically includes 100 to 140 stocks, focuses on modest risk control relative to expected level of outperformance.
The Bernstein Australian Value strategy also invests in accordance with the Bernstein Value Equities philosophy outlined above. This diversified portfolio typically includes 30 to 50 stocks and focuses on modest risk control relative to expected level of outperformance.
BlackRock Investment Management (Australia) Limited
International Equities
BlackRock Investment Management (Australia) Limited is an Australian subsidiary of BlackRock Inc which is a premier provider of global investment management, risk management and advisory services to institutional and retail clients around the world. As of 30 June 2007, BlackRock’s assets under management totalled A$1.448 trillion across fixed income, liquidity, equity, alternative investment and real estate strategies. Headquartered in New York, BlackRock operates 35 offices in 18 countries, maintaining a presence in most key markets including the United States, the United Kingdom, Asia, Australia, the Middle East and Europe.
BlackRock’s corporate objective is to be the investment manager of choice for superannuation/pension funds, charities, corporations, governments and individuals. BlackRock Quantitative Investors (BQI), which is responsible for the management of the State Super Financial Services Australia portfolio, manage A$91.395 billion assets globally (as at 30 June 2007).
The BlackRock Global Equity Enhanced Index strategy is designed to outperform the MSCI World (ex. Australia) Index. The investment philosophy focuses on the belief that superior risk adjusted returns can be achieved by capitalising on a broad set of quantitative stock selection techniques and trading strategies designed to exploit predictable market anomalies. BQI combine these strategies into a highly risk controlled portfolio that shares similar risk characteristics with the benchmark. The team believes that the market is informed, but still houses inefficiencies or opportunities that can be exploited through the disciplined use of structured stock selection techniques. Financial markets have a range of participants which are either subjected to cognitive biases or whose investment objectives may not be well aligned. This creates opportunities to secure out-performance if these circumstances can be identified.
Fidelity International Limited
Australian Equities
Fidelity is an affiliation of two separate, privately owned companies, Fidelity Management & Research Corp (FMR) in the United States and Fidelity International Limited outside the United States. The combined entities manage in excess of A$1.9 trillion (as at 30 June 2007).
Fidelity International was established nearly 40 years ago and has investment management capabilities based out of London, Paris, Frankfurt, Tokyo, Hong Kong, Mumbai, Seoul, Singapore and Sydney.
The Fidelity Australian Equities discipline is underpinned by an investment team based in Sydney. The team is backed by one of the largest international networks of analysts and portfolio managers. Fidelity, in conjunction with FMR, has access to the research of more than 700 investment professionals around the world, covering around 95% of world stocks by market capitalization.
The Australian equities team employs a bottom-up, research-driven investment style consistent with the approach upon which Fidelity was founded. The analysts favour stocks that are likely to generate better relative earnings and cash-flow growth than the market expects and they seek stocks where the return on capital is rising due to cyclical or structural improvements. The team favours companies that possess good management, strong competitive advantages and favourable industry dynamics.
Cohen & Steers Capital Management, Inc.
Global Listed Property Securities
Cohen & Steers Capital Management, Inc. (Cohen & Steers) pioneered the field of listed property securities investing more than 20 years ago. Today the firm employs the largest global team of professional solely dedicated to managing listed property securities portfolios. The size of the firm, the experience, depth and continuity of their team, and their time-tested, disciplined investment process provide Cohen & Steers with a superior information advantage that they translate into investment decisions directly benefiting State Super Financial Services clients.
Founded in 1986, Cohen & Steers is a wholly owned subsidiary of Cohen & Steers, Inc., a public company listed on the New York Stock Exchange (NYSE:CNS). The firm is headquartered in New York and has offices in Hong Kong, London, Brussels and Seattle. It serves a global client of institutional and individual investors through strategic investment in high-income equity sectors including global listed property securities, large cap value, utilities and preferred securities. As of 30 June 2007, the firm had A$40.7 billion in assets under management.
Cohen & Steers employs an integrated, relative value investment process that revolves around their proprietary fundamental research. Analysts scrutinize companies strategies, corporate structures, property quality and financial strength through market and balance sheet analysis and time spent in the field interviewing management teams and viewing properties. Their analysts’ qualitative and quantitative assessments are incorporated into a proprietary valuation model that recommends a target weight for each security. Portfolio managers review those targets in concert with the analysts’ research, and make their final investment decision in the contest of risk control, diversification, liquidity and client guidelines.
LaSalle Investment Management (Securities) L.P.
SG Hiscock & Company
Global Listed Property Securities
LaSalle Investment Management (Securities) L.P. (LIMS) is a subsidiary of LaSalle Investment Management, Inc. (LaSalle), a leading global real estate investment manager with more than A$55 billion of public and private assets under management, of which A$12 billion is invested in property securities (as at 30 June 2007). LaSalle is a subsidiary of Jones Lang LaSalle, a publicly-traded company on the New York Stock Exchange that is one of the world’s leading real estate services and investment management firms, operating in over 150 markets in 50 countries on 5 continents.
LIMS is one of the oldest and largest firms dedicated to real estate securities management of institutional investors. Although ownership of it’s parent has evolved through a series of mergers, the LaSalle securities investment team has operated as an autonomous unit under the same leadership team based in Baltimore, USA since it’s inception in 1985. LIMS’ European affiliate, LaSalle Investment Management Securities B.V, was formed in 1997 in Amsterdam and more recently LIMS enhanced its Asian presence with analysts located in Hong Kong.
LIMS value-oriented investment strategy has remained consistent since inception, based on the belief that the long-term performance of real estate securities will be driven by the performance of their underlying assets and the ability of management to create value. LIMS has dedicated substantial resources to real estate and real estate securities research and analysis in order to understand these companies’ asset values, cash flows, long term growth rates and associated risks that ultimately determine the value of these firms.
SG Hiscock & Company (SGH), who manage the Australian component of the LaSalle Global Mandate, is a boutique specialising in Listed Property Trusts (LPT), Smaller Companies and Absolute Return strategies. Established in August 2001, it is 100% owned by it’s principals who have worked together for 10 years, and as at 30 June 2007, had a total Funds Under Management in excess of A$3.6 billion.
Stephen Hiscock has one of the longest track records of investing in Listed Property Trusts in Australia with 17 years experience investing in LPTs, and Grant Berry, a qualified valuer, has 14 years investing experience in property. SGH’s value based investment process is a time tested, highly disciplined and low turnover approach which seeks to maximise the after tax return for investors. SGH seeks to take a long term property-like view of LPTs, investing in undervalued securities with a positive long term fundamental outlook.
SGH have an unparalledled competitive advantage in the LPT sector with an exclusive Joint Venture relationship with the Lasalle Investment Management (Securities), a wholly owned subsidiary of one of the world’s largest property companies, Jones Lang LaSalle. This enables SGH to have unique insights into the rapidly globalising Australian LPT sector.
RREEF
Global Listed Property Securities
RREEF is the global real estate and infrastructure investment management arm of Deutsche Bank’s Asset management division. As the world’s largest alternative investments manager (Source: Global Investor/Watson Wyatt Alternatives 99 Survey, June 2007), RREEF acquires and manages investments in commercial and residential property, infrastructure and real estate securities on behalf of it’s institutional and private clients worldwide.
Its product offering is global and comprehensive, including core, value-enhanced and high yield property investments as well as investments in publicly traded real estate securities, and infrastructure. Headquartered in New York, RREEF employs more than 1,400 real estate professionals in 15 cities around the world. RREEF has been an active investor in the Asia Pacific region for almost a decade, and today has one of the broadest geographic footprints in the region – spanning nine offices across Asia, Japan and Australia. RREEF’s unique full service, full product offering in the Asia Pacific is strengthened by the global reach of Deutsche Bank.
Australian Financial Services Licence No 238430
ABN 86 003 742 756