Investment managers in MLC’s super, pension and investment funds
Investment managers in MLC’s super, pension and investment funds Page 1
MLC Asset Management Services Limited (MLCAM) research and continually review hundreds of investment managers from around the world to select some of the best
ones for our funds. These are the investment managers we have selected to manage your investment in:
• MLC Wholesale trusts
• MLC MasterKey Super and Pension Fundamentals
• MLC MasterKey Investment Service Fundamentals, and
• Pre Select funds.
We may use a different combination of these investment managers in each fund, and may change the managers at any time. You can find up-to-date information about
investment managers for each fund at mlc.com.au/fundprofiletool.
Our managers specialise in the following asset classes and strategies:
• Australian shares
• Global shares
• Fixed income and cash
• Property
• Infrastructure
• Alternatives and other investments
• Currency management
Investment managers in MLC’s super, pension and investment funds Page 2
Our managers specialise in the following asset classes and strategies:
Australian shares managers
Investment manager
About the investment manager
• Acorn Capital Ltd (Acorn Capital) was appointed to manage Australian shares for MLC in 2024. We are familiar with Acorn
Capital as they are an existing manager in the MLC MultiActive funds (previously known as the IOOF MultiMix funds).
• Owned by its management and Australian Unity, the firm was established in 1998.
• The team is based in Melbourne.
Acorn Capital Ltd is a specialist Australian microcap manager focused on ASX listed and unlisted securities. The allocation to
Acorn Capital’s Emerging Growth Strategy provides access to attractive investments across all industries and in developing or
early/expansion situations.
A product of Acorn Capital’s investment process is that it’s continually seeking those companies that will outperform their
industry sectors. As a result of the investment process the portfolio will tend to have exposure to thematics that are not as
prevalent in larger capitalisation securities.
• Alphinity Investment Management (Alphinity) was appointed to manage Australian shares in 2012 and global shares in
2023.
• The majority employee-owned firm was established in 2010 and is based in Sydney, Australia.
Alphinity is included in our shares strategies as they are a core Australian and global shares manager with a high quality,
experienced investment team. Alphinity use a bottom-up stock selection approach. Their Australian shares investment process
seeks to identify quality companies with strong or improving earnings potential that is underestimated by the market. The firm’s
investment philosophy and approach aim to build a portfolio that provides consistent strong risk adjusted returns across
different market cycles.
Investment managers in MLC’s super, pension and investment funds Page 3
Investment manager
About the investment manager
• Antares Capital Partners Limited (Antares Equities) was appointed to manage Australian shares, including in MLC
IncomeBuilder, and Australian property securities in 2012.
• The firm was established in 1994 as Portfolio Partners and became the Antares Equities team in 2012.
• The team is based in Melbourne, Australia.
• Antares Equities is a member of the Insignia Financial Group.
Antares Equities is a specialist Australian shares manager. MLCAM appointed Antares Equities to our Australian shares
strategies to balance the insights of our other managers and provide increased diversity of stock selection and managers’
views, as well as the range of investments in these strategies. Antares Equities believes in bottom up stock-picking. A
consistent process and detailed, quality research executed by a highly experienced, stable and diverse team underpin this
approach. The investment philosophy is based on the belief that markets can misprice stocks and these opportunities can be
identified using the proven, proprietary Antares research process.
MLCAM has appointed Antares Equities as a passive manager in Australian property securities.
• BlackRock, Inc. (BlackRock) was appointed to manage Australian shares and global property securities in 2010 and 2021
respectively.
• The firm was established in 1988 and is based in New York, US.
BlackRock is included in our Australian shares and global property securities strategies to help support consistent risk and
return outcomes for our portfolios throughout changing market conditions. BlackRock takes a quantitatively-based, active
approach to investing in Australian shares that systematises fundamental stock selection. Core to BlackRock’s approach to
managing global property securities is bottom-up stock selection aided by a deep understanding of the macro environment
and capital markets. BlackRock’s investment process complements the other investment managers in our portfolios.
‘BlackRock’ is a trademark of BlackRock, Inc. or its subsidiaries.
• Invesco Australia (Invesco) has managed Australian and global shares for MLCAM since 2021.
• The firm was established in 1935 and has offices in North America, Australia, Asia, Europe, Middle East and Africa.
MLCAM expects Invesco to deliver performance that closely tracks the market index. Invesco is a well-resourced and very
capable global investment manager and has indexation as a core capability. Invesco uses a full replication strategy for its index
portfolios, delivering close tracking of indices in a cost-effective manner. The portfolio is managed by a well-resourced
Australian-based team that also has access to Invesco’s global research and their global team of dedicated dealers that
provide strong and well-resourced execution capability and dealing insights.
Investment managers in MLC’s super, pension and investment funds Page 4
Investment manager
About the investment manager
Macquarie Investment Management
Global Limited
• Macquarie Investment Management Global Limited (Macquarie) forms part of Macquarie Asset Management, the asset
management division of Macquarie Group.
• Macquarie has managed Australian shares and global listed infrastructure for MLCAM since 2021.
• Macquarie Asset Management has offices in Australia, Asia, Europe and the US.
MLCAM expects Macquarie’s enhanced index approach to support our Australian shares strategy to deliver consistent
outperformance while meeting the risk constraints of our portfolios. Their style complements the other managers we have in
place.
MLCAM accesses global listed infrastructure through the Macquarie Hedged Index Global Infrastructure Securities Fund,
which provides market exposure after deducting fees. We’re using Macquarie’s index approach at this time in some of our
diversified funds as an efficient way to access the economically and geographically diversified global listed infrastructure
market.
• Maple-Brown Abbott Ltd (Maple-Brown Abbott) was appointed to manage Australian shares in MLC IncomeBuilder in 2001.
• The firm was established in 1984 and is based in Sydney.
We have selected Maple-Brown Abbott to manage 70% of the MLC IncomeBuilder portfolio because of the experience of the
investment team and their disciplined application of a well-defined, value-oriented investment philosophy. Their approach of
identifying high quality, undervalued Australian companies with the potential to increase dividends is consistent with MLC
IncomeBuilder’s objective of delivering capital growth while providing a sustainable, tax-aware income stream. The MLC
IncomeBuilder mandate managed by Maple-Brown Abbott typically has 25 to 40 companies.
• Martin Currie was appointed to manage Australian shares for MLC in 2024. We are familiar with Martin Currie as they are
already used in other MLC MultiActive (previously IOOF MultiMix) and MLC Managed Account strategies.
• They are a Specialist Investment Manager within Franklin Templeton.
• The team is based in Melbourne.
Martin Currie is a value biased manager with a very experienced team and a strong long-term record managing Australian
shares. Martin Currie complement the growth bias in the All Cap and Mid Cap managers in the strategy.
They have demonstrated the ability to manage a dynamic value strategy, that can move between a core and deeper value
portfolio, depending on the investing environment which is driven by both bottom-up company micro factors as well as the
macroeconomic environment.
Investment managers in MLC’s super, pension and investment funds Page 5
Investment manager
About the investment manager
• The MLCAM Portfolio Management team was appointed to manage the defensive Australian shares strategy in the MLC
Real Return, Inflation Plus and Flexible portfolios in 2016.
• The team is based in Sydney.
The defensive Australian shares strategy aims to deliver returns similar to the Australian share market over the medium term,
but with less volatility due to less exposure to stocks that are likely to have significant negative returns. It’s designed to perform
more strongly than the market when the market is falling. As a result, it is expected to perform less strongly than the market
when the market is rising. The strategy is an extension of the Portfolio Management team’s scenarios-based investment
process for MLCAM’s diversified funds, with the team applying their asset allocation insights to this Australian shares exposure.
They believe the strong alignment between asset allocation insights and decisions about Australian industry sectors and stocks
will help achieve the real return objectives of the MLC Real Return, Inflation Plus and Flexible portfolios.
• Northcape Pty Ltd (Northcape) was appointed to manage Australian shares in 2005.
• The firm was established in 2005 and is based in Sydney, Australia.
MLCAM has appointed Northcape due to their experienced investment team and selection of high quality companies.
Northcape conducts independent in-depth research to identify mispriced companies that they expect will outperform the market
over the medium term. Four portfolio managers construct Northcape’s portfolio, providing robust peer review of investment
opportunities. Northcape holds around 30 to 40 stocks in their portfolio and has shown no particular sector or style bias over the
long term.
• OC Funds Management was appointed to manage Australian shares for MLC in 2024. We are familiar with OC Funds
Management as they are an existing manager in MLC MultiActive funds (previously known as IOOF MultiMix funds).
• Led by Rob Frost, Head of Investments, OC Funds Management comprises six seasoned investors and combines over 80
years of investment management experience.
• The firm was established in 2000.
• The team is based in Melbourne.
The OC Funds Management investment philosophy incorporates a strong focus on risk management as part of a disciplined
and sustainable investment process. This process involves generally screening for unprofitable and cashflow negative
businesses, complex and opaque business models, single commodity stocks, and inaccessible and untrustworthy
management.
Investment managers in MLC’s super, pension and investment funds Page 6
Investment manager
About the investment manager
• Quest Asset Partners (Quest) was appointed to manage Australian shares for MLC in 2024. We are familiar with Quest as
they are an existing manager in MLC MultiActive funds (previously known as IOOF MultiMix funds).
• Quest have a stable and experienced investment team.
• Proven investment process
• The team is based in Sydney.
• The firm is owned by the investment team.
Quest have a quality bias with a strong long-term track record. Quest’s quality bias and mid-cap tilt complements our existing
Australian shares managers, particularly Alphinity and Antares Equities.
• Selector Funds Management Limited (Selector) was appointed to manage Australian shares for MLC in 2024. We are
familiar with Selector as they have been a manager in MLC MultiActive funds (previously known as IOOF MultiMix funds)
since 2013.
• Founders and Portfolio Managers Tony Scenna and Corey Vincent are major shareholders of Selector.
• The firm was established in 2002.
• The team is based in Sydney.
Selector who have a midcap quality growth bias will complement the OC Funds Management midcap strategy. Selector seek
businesses with leadership qualities, run by competent management teams, underpinned by strong balance sheets and with a
focus on capital management.
Investment managers in MLC’s super, pension and investment funds Page 7
Global shares managers
Investment manager
About the investment manager
• Alphinity Investment Management (Alphinity) was appointed to manage Australian shares in 2012 and global shares in 2023.
• The majority employee-owned firm was established in 2010 and is based in Sydney, Australia.
Alphinity is included in our shares strategies as they are a core Australian and global shares manager with a high quality,
experienced investment team. Alphinity use a bottom-up stock selection approach. Their global shares investment process seeks to
identify quality companies with strong or improving earnings potential that is underestimated by the market. The firm’s investment
philosophy and approach aim to build a portfolio that provides consistent strong risk adjusted returns across different market cycles.
• Arrowstreet Capital, Limited Partnership (Arrowstreet Capital) was appointed to manage global shares in 2017 and global small
company shares in 2023.
• The firm was established in Boston in 1999.
• Arrowstreet Capital is wholly-owned and controlled by members of the firm’s senior management and non-executive directors.
We appointed Arrowstreet Capital because they are an experienced global shares manager with a track record of consistent excess
returns in different market environments. Their systematic approach to portfolio construction seeks to construct well diversified, core
portfolios of attractive stocks that don’t co-vary with systematic sources of variation, such as the value/growth cycle or the
small/large cap cycle. Arrowstreet Capital complements our existing global shares managers, increasing the diversity of investment
insights.
• Brown Advisory was appointed to manage global shares in 2023.
• The investment firm was established in 1993 as an affiliate of Alex. Brown & Sons. In 1998, the current management and
investment team led a buyout to establish Brown Advisory as a private, independent investment business.
• Every Brown Advisory colleague owns an equity interest in the firm, accounting for approximately 70% of share capital.
• The firm has locations across the US, as well as offices in London, Frankfurt, Singapore and Tokyo.
Brown Advisory Global Leaders strategy follows a fundamental, bottom-up, research intensive investment selection process. They
seek to own a concentrated portfolio of 30-40 leading global companies in any sector or country that they believe are capable of
compounding excess economic returns over time. At the heart of their approach is the belief that high-quality companies that deliver
superior outcomes for their customers, have strong leadership positions and high return on invested capital (ROIC) can generate
outstanding shareholder returns for investors.
Investment managers in MLC’s super, pension and investment funds Page 8
Investment manager
About the investment manager
• Intermede Investment Partners Ltd (Intermede) was appointed to manage global shares in December 2015.
• The firm was stablished in 2014 and is based in London, UK.
• The Insignia Financial Group is a minority shareholder in Intermede.
Intermede is a global shares specialist. MLCAM appointed Intermede because of the quality and experience of its investment team,
most of whom worked together prior to establishing Intermede. Intermede is a ‘growth’ manager whose investment approach
complements those of the other managers in our global shares strategy. The manager aims to outperform global markets by
investing in companies with good management and strong market positions in attractive industries. In particular, it looks for
companies with a sustainable competitive advantage. Intermede manages a concentrated portfolio of 40-50 companies, which are
expected to be biased towards companies that sell low priced, but high value, business-critical items.
• Invesco Australia (Invesco) has managed Australian and global shares for MLCAM since 2021.
• The firm was established in 1935 and has offices in North America, Australia, Asia, Europe, Middle East and Africa.
MLCAM expects Invesco to deliver performance that closely tracks the market index. Invesco is a well-resourced and very capable
global investment manager and has indexation as a core capability. Invesco uses a full replication strategy for its index portfolios,
delivering close tracking of indices in a cost-effective manner. The portfolio is managed by a well-resourced Australian-based team
that also has access to Invesco’s global research and their global team of dedicated dealers that provide strong and well-resourced
execution capability and dealing insights.
• Pzena Investment Management (Pzena) was first appointed to manage global shares for MLCAM in December 2017.
• Established in New York in 1996. With offices in London, Melbourne and Dublin.
MLCAM appointed Pzena because they are an active, deep value manager with a proven ability to provide higher returns than the
market through stock selection, by investing in the shares of good businesses that they believe are undervalued relative to their
longer-term normalised earnings potential. Pzena complements our existing managers, as they provide exposure to deeper value
investments than the other managers.
• Royal London Asset Management (Royal London) was appointed to manage global shares in 2022.
• The firm was established in 1988 and is a wholly-owned subsidiary of the Royal London Group.
MLCAM appointed Royal London because their research and portfolio construction approach results in a high degree of risk coming
from stock selection, rather than style or any other aspects. This differentiation is attractive. As a result, style is only a small
component of the active risk, with the vast majority of the active risk coming from stock specific aspects.
Investment managers in MLC’s super, pension and investment funds Page 9
Investment manager
About the investment manager
• Walter Scott & Partners, Limited (Walter Scott) was appointed to manage global shares in 2005.
• The firm was founded in 1983 and is based in Edinburgh, UK.
MLCAM selected Walter Scott for the global shares strategy in the MLC Real Return, Inflation Plus and Flexible portfolios because
the manager’s strong focus on long-term real returns and downside protection fits well with the portfolio’s objective. Walter Scott
considers the value of stocks over a long timeframe and takes a disciplined ‘buy and hold’ approach to stock picking, resulting in a
portfolio of approximately 50 stocks.
Investment managers in MLC’s super, pension and investment funds Page 10
Fixed income and cash managers
Investment manager
About the investment manager
• Antares Capital Partners Limited (Antares) was appointed to manage Australian cash, bonds and inflation-linked bonds in 1991.
• While the firm was established in 2012, the Antares Fixed Income team members have managed fixed income since 1990. The
team is located in Sydney, Australia.
• Antares is a member of the Insignia Financial Group.
MLCAM uses Antares Fixed Income because the credit-focussed process of this highly experienced team provides a risk-controlled
exposure to domestic credit. Antares enhances returns through both core strategies (such as sector allocation, credit selection and
yield maximisation) and tactical strategies (including duration, yield curve and spread positions).
• Ardea Investment Management (Ardea) was appointed as a fixed income manager in 2021.
• The firm was established in 2008 and is based in Sydney, Australia.
Ardea uses a ‘relative value’ approach which specifically identifies whether a bond is mispriced relative to other related securities
with similar risk characteristics and therefore has potential for its price to rise or fall.
Ardea’s strategies that MLCAM invests in, tend to generate returns that are independent of interest rate direction and don’t rely on
credit or directional trades to generate returns. Ardea’s strategies are expected to provide good uncorrelated diversification of
returns to MLC’s portfolios.
• Bentham Asset Management (Bentham) was appointed as a specialist global credit and fixed income manager for MLCAM in
2023.
• Bentham is based in Sydney, Australia.
• The business was spun out of Credit Suisse Asset Management in May 2010.
Bentham believes global credit markets represent a valuable diversifying asset class to traditional asset classes (bonds and
shares). Global credit tends to offer higher income than traditional fixed income and lower levels of correlation with shares and
government bonds, which can improve the risk-return profile of a balanced investment portfolio. Bentham’s approach has robust risk
management and implements active risk mitigation.
MLCAM uses Bentham as we believe they will assist to provide better risk-adjusted return outcomes for the extended credit
strategy.
Investment managers in MLC’s super, pension and investment funds Page 11
Investment manager
About the investment manager
• Brandywine Global was appointed as a global fixed income manager in 2022.
• Established in 1986 and based in Philadelphia.
Brandywine Global applies a differentiated, proven process that combines top-down analysis of macroeconomic conditions with
bottom-up fundamental research. They seek to identify global, cross-sector opportunities that they believe offer the most compelling
combinations of valuations and durable fundamentals.
The customised Brandywine Global multi-sector fixed income strategy used in MLCAM’s portfolios takes meaningful deviations from
the market benchmark. The strategy is considered benchmark agnostic, meaning it may experience periods of both significant
outperformance or underperformance relative to the market benchmark.
• Janus Henderson Investors (Janus Henderson) was appointed as an Australian fixed income manager in 2022.
• Established in 2017 through the merger of Henderson Global Investors (founded in the UK in 1934) and the Janus Capital
Group (founded in the US in 1969).
The Australian Fixed Interest team at Janus Henderson believes that investment markets are inefficient causing market pricing to
overshoot ‘fair value’ levels. They believe that by applying a rational and disciplined valuation framework, an active approach in both
interest rate and credit management can take advantage of these market overshoots and deliver superior risk adjusted returns over
time. They focus their research on three key areas: economic, market trends, and credit.
A key attraction of the Australian Fixed Interest team is its ability to access the Janus Henderson Group’s broader global resources,
as well as its nimbleness, as they have proven ability to quickly adjust portfolios to the opportunities that present.
• Metrics Credit Partners (Metrics) was appointed as an Australian fixed income manager in 2022.
• Metrics is one of Asia’s largest specialist private debt investors with a presence in Sydney, Melbourne and Auckland.
• Metrics’ capabilities cover all the fundamentals of direct lending and private credit including origination, credit analysis, portfolio
analysis and distribution. Metrics has completed direct lending transactions exceeding A$21bn across more than 700 individual
loan transactions in the past 10 years.
• Metrics is owned 65% by the Metrics Managing Partners.
Metrics has an experienced management team that understands the various sources of income available from, and risks associated
with, corporate loans, and is best able to implement investment strategies and processes able to maximise returns from this asset
class.
Metrics has a very clear and long track record of performance where regular evidence of repayment at par without loss has been
consistently demonstrated and their governance processes across their business and funds is of the highest standard.
Investment managers in MLC’s super, pension and investment funds Page 12
Investment manager
About the investment manager
• Muzinich & Co Limited (Muzinich) was appointed to manage global high yield fixed income for MLCAM in September 2017.
• The firm was established in New York in 1988 by George Muzinich and is owned by the Muzinich family members and their
trusts.
MLCAM appointed Muzinich because they are an experienced manager of credit assets (corporate bonds and bank loans),
investing across a broad range of high yield sectors in developed and emerging markets. When choosing securities, Muzinich
applies a combination of top-down and bottom-up proprietary credit research. Muzinich complements our existing high yield
managers, who currently invest mainly in US high yield loans.
Oaktree
• Oaktree Capital Management, L.P. (Oaktree) was appointed to manage global high yield bonds and loans in 2019.
• The firm was established in 1995 in Los Angeles, US.
MLCAM uses Oaktree as they have a global, multi-sector strategy which complements our existing high yield managers. When
choosing securities, Oaktree adopts a defensive investment philosophy which provides our portfolios with downside protection.
Oaktree applies a bottom-up approach, evaluating relative value and risk-adjusted return potential of the best ideas from each of its
asset classes. Oaktree invests in high yield loans and bonds in developed markets (US and Europe) and emerging markets (Asia,
Latin America, Eastern Europe). Oaktree also invests in real estate debt, convertibles and corporate structured securities.
• PGIM Fixed Income operates primarily through PGIM, Inc. (PGIM).
• PGIM was appointed as a global fixed income manager in 2022.
• Established in 1984 and based in New Jersey.
PGIM’s Fixed Income investment philosophy is that research-driven security selection is the most consistent strategy for adding
value to portfolios. They complement that base strategy with modest credit sector rotation, duration management (or interest rate
risk management), and disciplined trade execution. Risk budgeting is central to their approach.
PGIM is an indirect subsidiary of Prudential Financial, Inc. (PFI)*, which became a publicly held company in 2001 and is a publicly
listed Fortune 500 company. PGIM’s origins from managing proprietary fixed income assets has lent the manager to a culture of
rigorous risk management and a focus on investing in areas that generate the highest risk-adjusted returns.
*PFI of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance
Company, a subsidiary of M&G plc, incorporated in the United Kingdom.
Investment managers in MLC’s super, pension and investment funds Page 13
Investment manager
About the investment manager
• Pacific Investment Management Company, LLC (PIMCO) was appointed to manage global multi-sector bonds in 1997.
• The firm was established in 1971 and is based in Newport Beach, California, US.
MLCAM uses PIMCO due to their expertise in structuring portfolios to capitalise on longer-term investment themes and their ability
to allocate risk across a broad array of fixed income securities and exposures. PIMCO aims to maximise total return while
achieving low volatility and believes this is best achieved through wide diversification across bond market sectors, issuers and
industries.
• Shenkman Capital Management, Inc (Shenkman Capital) was appointed to manage global bank loans in 2010.
• The firm was established in 1985 and is based in New York, US and London, UK.
MLCAM uses Shenkman Capital because they have a strong focus on bottom-up fundamental credit research, seeking to minimise
defaults, which is an imperative in this sector of the leveraged loan market. They concentrate their effort on identifying a subset of
the bank loan universe that they consider to have strong fundamentals from which they construct portfolios. The firm has very
experienced investment personnel who implement their proprietary credit rating process, which underpins portfolio construction.
• Stone Harbor Investment Partners (Stone Harbor) is a global institutional fixed income investment manager, specialising in fixed
income and asset allocation strategies.
• Stone Harbor was appointed by MLCAM in 2023.
• Stone Harbor became a wholly owned subsidiary of Virtus Investment Partners in January 2022. The firm is headquartered in
New York, with offices in London and Singapore. Today, Stone Harbor is a division of Virtus Fixed Income Advisers, LLC
("VFIA”), an SEC registered investment adviser.
• Stone Harbor’s established track record span over 30 years in a broad array of credit and asset allocation strategies.
Stone Harbor is a specialist emerging market debt (EMD) manager, and the team has one of the longest running track records in
the EMD asset class. Stone Harbor’s Emerging Markets Explorer Strategy is a concentrated total return portfolio of high-conviction
ideas from the emerging markets debt asset classes, including government credit, corporate credit, local duration, and foreign
currency.
MLCAM uses Stone Harbor as we believe they will assist to provide better risk-adjusted return outcomes for the extended credit
strategy.
Investment managers in MLC’s super, pension and investment funds Page 14
Investment manager
About the investment manager
• TCW Asset Management (TCW) was appointed to manage securitised debt in 2021.
• The firm was established in 1971 and is based in Los Angeles, US.
MLCAM appointed TCW as they have an extremely disciplined and downside risk-focussed approach, while being able to take full
advantage of market dislocations and inefficiencies in the securitized markets. We have a securitised debt allocation to increase
return potential for clients and broaden diversification across fixed income sectors. TCW’s investment process provides an attractive
yield with low default-risk, and is well suited to MLCAM’s fixed income funds.
• Wellington Management was appointed to manage global non-government bonds in 2010.
• The firm was established in 1928 and has invested in global bonds since 1995. The firm has 13 offices around the world
including in Sydney, Australia.
MLCAM appointed Wellington Management because of the depth and breadth of their coverage of issuers in global investment
grade credit markets and the high quality of their macroeconomic research. The team that manages global bond portfolios is
experienced and of high quality. The investment process integrates top-down analysis of global investment themes, rigorous
fundamental economic analysis, and specialist research on individual credit sectors with bottom-up security selection.
• Western Asset was appointed to manage global fixed income in 2022. It is one of the world's leading investment management
firms.
• Its primary business is managing fixed-income portfolios, an activity the firm has pursued since 1971.
The Western Asset Management High Grade Multi-Asset Credit (HGMAC) looks at opportunities across global investment grade
and high-yield corporate bonds, bank loans, collateralized loan obligations and structured credit.
Seeks to add value through sector rotation, issue selection, duration management, yield curve positioning, and tail risk hedging.
The HGMAC strategy is expected to behave well in both periods of low and high market volatility given the strategy’s fully diversified
nature, active sector rotation program, tactical duration management and the presence of tail-risk hedging strategies.
Investment managers in MLC’s super, pension and investment funds Page 15
Property managers
Investment manager
About the investment manager
• Antares Capital Partners Limited (Antares Equities) was appointed to manage Australian shares, including in MLC
IncomeBuilder, and Australian property securities in 2012.
• The firm was established in 1994 as Portfolio Partners and became the Antares Equities team in 2012.
• The team is based in Melbourne, Australia.
• Antares is a member of the Insignia Financial Group.
Antares Equities manages a passive Australian property securities mandate for MLCAM.
• BlackRock was appointed to manage Australian shares and global property securities in 2010 and 2021 respectively.
• The firm was established in 1988 and is based in New York, US.
BlackRock is included in our Australian shares and global property securities strategies to help support consistent risk and return
outcomes for our portfolios throughout changing market conditions. BlackRock takes a quantitatively-based, active approach to
investing in Australian shares that systematises fundamental stock selection. Core to BlackRock’s approach to managing global
property securities is bottom-up stock selection aided by a deep understanding of the macro environment and capital markets.
BlackRock’s investment process complements the other investment managers in our portfolios.
• ‘BlackRock’ is a trademark of BlackRock, Inc. or its subsidiaries.
• Invesco Australia (Invesco) was appointed to manager global property securities in 2022.
• The firm was established in 1935 and has offices in North America, Australia, Asia, Europe, Middle East and Africa.
MLCAM expects Invesco to deliver performance that closely tracks the market index. Invesco is a well-resourced and very capable
global investment manager and has indexation as a core capability. Invesco uses a full replication strategy for its index portfolios,
delivering close tracking of indices in a cost-effective manner. The portfolio is managed by a well-resourced Australian-based team
that also has access to Invesco’s global research and their global team of dedicated dealers that provide strong and well-resourced
execution capability and dealing insights.
Investment managers in MLC’s super, pension and investment funds Page 16
Investment manager
About the investment manager
(for MLCAM Property Asset Portfolio
Management team)
• The MLCAM Property Asset Portfolio Management team has been managing Australian direct property since 2002.
• The team is based in Sydney and Melbourne, Australia.
Direct property refers to the direct ownership of Australian property.
MLCAM includes Australian direct property in some of its diversified funds due to the strong, reliable and consistent income returns
that it generates together with increases in market value over time. The strategy aims to generate strong risk-adjusted returns to
investors over a range of market cycles and benefits from being a diversified portfolio that comprises centrally located and well
tenanted commercial office, large format retail and industrial properties in Melbourne, Sydney, Canberra, Newcastle and Adelaide.
As the strategy is internally managed, it is designed and constantly adjusted to specifically match funds’ objectives by generating
strong recurring income streams as a consequence of high occupancy and tenant retention. Only moderate financial gearing is
utilised to ensure investors’ capital is protected during all economic cycles. Since its inception the portfolio has grown to a
substantial size which has enabled the team to construct a well-diversified and balanced portfolio with a large and diversified range
of tenants.
The portfolio construction emphasises sustainable economic returns which have proven to match investors’ expectations and needs
from the property asset class.
(for MLCAM Diversified Portfolio
Management team)
• The MLCAM Diversified Portfolio Management team has been managing unlisted property since 2017.
• The team is based in Sydney, Australia.
Unlisted property refers to investment in property funds that are not listed on a securities exchange.
MLCAM includes unlisted property in some of its diversified funds because they assist the portfolios to achieve smooth long-term
returns from property assets, accessing additional return premiums due to illiquidity, diversifying sector exposures compared to
listed property assets, and providing exposures that are fundamentally related to economic growth.
The team focuses on generating a foundation of strong, reliable and consistent income returns and over time capturing increases in
market value. They invest across the key property sectors of Office, Industrial and Retail through investments in both diversified and
sector specialist property funds, resulting in a portfolio of property assets that are diversified across a large range of properties,
tenants, and Australian geographies.
• Presima, Inc (Presima) was appointed to manage global property securities in 2013.
• The firm was established in 2004 and is located in Montreal, Canada.
• MLCAM has selected Presima because they are a specialist global properties manager and their investment approach
complements the other managers in our global property strategy. Their investment team is experienced and stable and they
have a robust, disciplined investment process. A key strength of its process is rigorous peer review of investment ideas. The
firm uses extensive bottom-up analysis to create a concentrated portfolio of 30-40 stocks.
Investment managers in MLC’s super, pension and investment funds Page 17
Investment manager
About the investment manager
• Resolution Capital Ltd (Resolution Capital) was appointed to manage Australian property securities in 1995 and global property
securities in 2006.
• While the firm was established under the Resolution Capital name in 2004, members of the investment team have a long-term
investment track record managing money for MLCAM dating back to 1995. The team is based in Sydney, Australia.
MLCAM uses Resolution Capital because they are a specialist property securities manager. The knowledge and experience of the
team results in a deep understanding of all aspects of the property trust markets and the underlying property assets of each trust.
They run a relative value investment process, with a strong emphasis on the management quality of the underlying properties of
each trust. They have one of the best-resourced Australian real estate securities teams in Australia.
Investment managers in MLC’s super, pension and investment funds Page 18
Infrastructure managers
About the investment manager
• Macquarie Investment Management Global Limited (Macquarie) forms part of Macquarie Asset Management, the asset
management division of Macquarie Group.
• Macquarie has managed Australian shares and global listed infrastructure for MLCAM since 2021.
• Macquarie Asset Management has offices in Australia, Asia, Europe and the US.
MLCAM expects Macquarie’s enhanced index approach to support our Australian shares strategy to deliver consistent
outperformance while meeting the risk constraints of our portfolios. Their style complements the other managers we have in place.
MLCAM accesses global listed infrastructure through the Macquarie Hedged Index Global Infrastructure Securities Fund, which
provides market exposure after deducting fees. We’re using Macquarie’s index approach at this time in some of our diversified
funds as an efficient way to access the economically and geographically diversified global listed infrastructure market.
• The MLCAM Diversified Portfolio Management team has been managing unlisted infrastructure since 2018.
• The team is based in Sydney, Australia.
Unlisted infrastructure refers to direct ownership of assets including transportation (eg airports, toll roads, sea ports), utilities (eg
water, electricity), renewables (eg solar, wind, battery) and social infrastructure (eg hospitals, schools). MLCAM implements its
unlisted infrastructure strategy through a multi-manager and co-investment approach.
MLCAM includes unlisted infrastructure assets in some of its diversified funds because they assist the portfolios to achieve
exposure to assets with long-term, stable and predictable cashflows that are either regulated or contracted, originating from
essential service businesses with high barriers to entry. The cash flows are often linked (either explicitly or implicitly) to inflation and
can help insulate diversified funds from inflation risks.
Investment managers in MLC’s super, pension and investment funds Page 19
Alternatives and other investment managers
Investment manager
About the investment manager
(for MLCAM Alternative Strategies
Team)
• The MLCAM Alternative Strategies team was appointed to manage the opportunistic capital solutions strategy (previously
known as the Low Correlation Strategy) in 2008 and insurance-related investments in 2007.
• The team is based in Sydney, Australia.
The oopportunistic capital solutions and insurance-related investments strategies were developed specifically for MLCAM’s
diversified funds. Both strategies are designed to increase the diversity of sources of return and risk in those portfolios:
• The opportunistic capital solutions strategy achieves this by combining several carefully selected alternative strategies,
including hedge funds.
• Insurance-related investments are investments in natural catastrophe risks, where investors take on the role of an insurer. They
receive a yield – effectively an insurance premium – for taking the risk of a particular natural catastrophe causing losses above
a certain level. As the occurrence of natural catastrophes has no expected relationship with share market movements, the
strategy is an attractive source of diversification. MLCAM partners with reinsurance specialists to create tailored strategies
aligned with our desired risk-return and exposure characteristics.
These alternative strategies provide our diversified funds with sources of risk and return that are not correlated to mainstream asset
classes, helping to smooth out the portfolios’ returns.
(for MLCAM Private Equity)
• The MLCAM Private Equity team was established and appointed to manage private assets in 1997.
• The team is based in Sydney, Australia.
MLCAM includes private assets in its diversified funds because these assets provide a potential source of returns that isn’t strongly
linked with returns from mainstream assets, such as shares and fixed income. It’s a particularly attractive source of potential returns
when mainstream assets are volatile or offering low yields.
MLCAM appointed the MLCAM Private Equity team for the longevity and consistency of its approach – it has invested in private
equity globally since 1997, across market cycles. The team has close relationships with some of the world's leading private equity
partners, providing access to many high quality private equity opportunities.
Investment managers in MLC’s super, pension and investment funds Page 20
Investment manager
About the investment manager
(for Derivatives and Currency strategies)
• The MLCAM Derivatives team was appointed to implement derivative strategies in 2013 and to manage currency in 2015.
• The team is based in Sydney and Melbourne.
MLCAM uses currency and derivative strategies to help manage risk, enhance returns, and implement investment insights more
efficiently and at lower cost than investing directly in ‘physical’ securities such as shares. The strategies the MLCAM Derivatives
team employ may include using futures and options for risk management, economical or asymmetric investment exposures and/or
accessing investment exposures in areas our underlying managers don’t cover. The team provide an execution service to passively
hedge currency exposures across our investments where required. The team specialise in obtaining best execution rates for the
currency hedges to keep costs low. The MLCAM Derivatives team works closely with the MLCAM Portfolio Management team,
which manages the diversified funds.
(for Real Return Strategy)
• The MLCAM Portfolio Management team was appointed to manage the Real Return Strategy in 2016.
• The Portfolio Management team is based in Sydney.
The Real Return Strategy focuses on providing risk-controlled real (above inflation) returns. The strategy can invest in a wide range
of assets and strategies and the Portfolio Management team has the flexibility to make large changes to the strategy’s asset
allocation to manage risk and capture opportunities for returns as the investment environment evolves. MLCAM’s Portfolio
Management team believes this diversification, flexibility and ability to tailor risk exposures should help generate higher
performance for the level of risk they take in the MLCAM diversified funds and smooth the portfolios’ returns.
Investment managers in MLC’s super, pension and investment funds Page 21
Currency managers
Investment manager
About the investment manager
• J.P. Morgan Asset Management (J.P. Morgan AM) was appointed to implement a passive currency overlay in 2007.
• Has managed currency since 1989.
• The currency management team is located in London.
(for Derivatives and Currency strategies)
• The MLCAM Derivatives team was appointed to implement derivative strategies in 2013 and to manage currency in 2015.
• The team is based in Sydney and Melbourne.
• National Australia Bank (NAB) implements a passive currency overlay.
• Has managed currency since 2010.
• The currency management team is located in Sydney with a dedicated Operations team located in Melbourne.
• State Street Bank and Trust Company (State Street), acting as directed agent, was appointed to implement a passive currency
overlay in 2000.
• Has managed currency since 1992.
• The currency management team is located in Boston, US, with client service functions offered out of Tokyo, London and
Frankfurt.
Investment managers in MLC’s super, pension and investment funds Page 22
Important information
This communication is provided by MLC Investments Limited (ABN 30 002 641 661, AFSL 230705) in its capacity as Operator of MLC MasterKey Investment Service
Fundamentals and Responsible Entity for the MLC Investment Trust; NULIS Nominees (Australia) Limited (ABN 80 008 515 633, AFSL 236465) in its capacity as the
Trustee of MLC MasterKey Super and Pension Fundamentals, a part of the MLC Super Fund (ABN 70 732 426 024); MLC MasterKey Business Super, also part of the
MLC Super Fund; and Navigator Australia Limited (ABN 45 006 302 987, AFSL 236466) as Responsible Entity for the Pre Select funds. References to “we”, “us” or “our”
are references to MLC Investments Limited, NULIS Nominees (Australia) Limited or Navigator Australia Limited. We are part of the Insignia Financial Group of companies
(comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate) (‘Insignia Financial Group’).
No member of the Insignia Financial Group guarantees or otherwise accepts any liability in respect of any financial product referred to in this communication. The capital
value, payment of income, and performance of any financial product referred to in this communication are not guaranteed. An investment in any such financial product
referred to in this communication is subject to investment risk, including possible delays in repayment of capital and loss of income and principal invested.
The information in this communication may constitute general advice. It has been prepared without taking account of an investor’s objectives, financial situation or needs
and because of that an investor should, before acting on the advice, consider the appropriateness of the advice having regard to their personal objectives, financial
situation and needs.
You should obtain a Product Disclosure Statement (PDS) relating to any financial product mentioned in this communication issued by MLC Investments Limited, NULIS
Nominees (Australia) Limited or Navigator Australia Limited and consider it before making any decision about whether to acquire or continue to hold the product. A copy of
the PDS is available upon request by phoning our call centre on 132 652 or on our website at mlc.com.au.
This communication is directed to and prepared for Australian residents only.
The investment managers are current as at the date this communication was prepared. Investment managers are regularly reviewed and may be appointed or removed at
any time without prior notice to you.
We believe that the information contained in this communication is correct and that any estimates, opinions, conclusions or recommendations are reasonably held or made
at the time of compilation. However, no warranty is made as to their accuracy or reliability, which is subject to change without notice, and we shall not be under any duty to
update or correct it. We may rely on third parties to provide certain information. We are not responsible for its accuracy or liable for any loss arising from person relying on
information provided by third parties. Subject to any terms implied by law and which cannot be excluded, we shall not be liable for any errors, omissions, defects or
misrepresentations in this communication (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect)
suffered by persons who use or rely on the communication.