Schroders Investment Management has picked up a key small companies mandate from Colonial FirstChoice.
Schroders Investment Management portfolio manager David Wanis said the mandate had been awarded following several months of consultation between the two companies.
The Colonial FirstChoice mandate comes less than a year after the Schroders team launched the Schroders Australian Small Companies Fund in December last year.
Wanis pointed out that the fund had already earned ‘recommended’ and ‘highly recommended’ ratings from ratings houses Morningstar and Lonsec.
The fund invests in a broad range of smaller companies specifically seeking out undervalued companies with the potential to deliver high and sustainable returns on capital relative to their cost of capital and other companies.
While not having a strategic asset allocation might be ‘uncomfortable’ for some investors, the Future Fund believes its unique investment approach helps the fund capture long-term value ahead of the curve.
The sovereign wealth fund grew $11.5 billion in the March quarter, according to its latest portfolio update, having previously voiced caution about inflation’s downward trajectory.
The property group, owned by industry super fund Aware Super, has announced two new projects with a total construction value of $320 million that will add more than 700 homes to Melbourne’s rental market.
While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their involvement in addressing the substantial capital requirements vary widely.
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