The $300 billion profit-to-member fund has linked up with Oxford Properties for a portfolio of high-quality European industrial and logistics assets that it wants to expand significantly over the next three to five years.
Australia’s megafunds are looking to international asset owners for ideas on how to invest what will soon be trillions in retirement savings. But banks – with their sharp focus on efficient implementation and balance sheet management – could also be a source of inspiration.
Cbus adopts options program for risk and retirement aims
(pictured: Tim Ridley)
Cbus has introduced an options program through QIC with the dual goal of managing risk better and providing a new capability to develop member retirement products. Such programs are likely to become increasingly popular.
Frontier Advisors has been publicly recommending such a program for the past couple of years, usually preferring to use fund managers to provide the service rather than investment banks because of price and transparency.
Late last year, Parametric announced it had developed a program for its Australian clients, prompting renewed interest in the strategy from big funds.
For QIC, Damien Frawley, the chief executive, said the “innovative volatility program” was developed and tailored specifically for the $31 billion fund, which uses Frontier as its asset consultant.
Frawley said it stemmed from “the whole-of-fund thinking embedded in QIC’s investment DNA as well as our philosophy of partnering with clients”.
Tim Ridley, the Cbus investment manager, strategy, said one of the advantages of the strategy was its flexibility to help develop new products in the retirement space.
“The introduction of the options strategy increases Cbus’ capacity to manage risk, providing the capability to not only improve outcomes for our current accumulation members, but to also further tailor our product offering to members as they near or enter retirement,” he said.
Kristian Fok, Cbus executive manager, investment strategy, said: “We view this as the beginning of a broader relationship with QIC, reflecting our shared investment values and an alignment with our focus on members. Additionally, reflecting the strong calibre of the team at QIC, the relationship gives us access to strategies and ideas that may generate more opportunities for us going forward.”
