State Super, the $31 billion Australian superannuation fund, has announced an allocation to the All China equities fund managed by Ninety One.
The mandate represents the first time that State Super has made a single-country investment outside of Australia.
According to a statement from the New South Wales-based pension fund, the allocation was based on risk mitigation.
“The purpose of the mandate is to effectively de-risk the portfolio using a specialist. We recognise that China is part of the emerging markets portfolio. With heightened geopolitical risk, we think it is important to appoint a specialist to mitigate the risk,” the fund said in a statement.
Few super funds in Australia have invested in single-country mandates outside of the US and Europe or in China mandates. Exceptions include Victorian Fund Management Corporation and Non-Government Schools.
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