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Article: Aussie fund cuts bond allocation to zero.(state bonds allotments )
- Article from:
- Pensions & Investments
- Article date:
- February 5, 2007
CopyrightCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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SYDNEY - The A$4.5 billion (US$3.55 billion) MTAA Super will reduce its fixed-income allocation to zero this year, after determining its "target return'' portfolio of unlisted assets can provide higher returns with less volatility.
After reviewing the fund's strategic asset allocation with consultant Access Economics late last year, officials at the Motor Trades Association of Australia Superannuation Fund decided to boost the "target return'' portfolio ceiling to 48% from 45%.
Believed to be a first for an Australian super fund, MTAA Super Deputy Chief Executive Paul Watson said the fund's abandonment of its 2% bond exposure had less to do with recent ...