AvSuper regularly reviews investment strategies and opportunities in specific asset classes.
The Trustee believes that exposure to carefully selected alternative assets strongly complements its current investments in other asset classes and provides effective diversification benefits. Our most recent review of this sector resulted in the appointment of two new hedge fund managers with effect from 1 November as detailed below.
AvSuper’s profit-for-member approach means the Investment Committee makes all investment decisions to benefit members over the long term, helping you build your retirement savings in an effective and prudent manner.
The Fauchier Partners’ Absolute Return Trust has over $A625 million in assets under management in Australia. London based Fauchier Partners (distributed by BNP Paribas Investment Partners in Australia) is one of Europe’s leading fund of hedge funds managers.
Fauchier Partners has an outstanding 15 year track record with portfolio construction minimising correlation with listed markets and producing consistent downside protection. The Investment Committee was very impressed with the full transparency, high level of due diligence and compliance oversight conducted, and the prudent nature of Fauchier Partners’ management approach and style, which is consistent with AvSuper’s investment fiduciary philosophy.
The Aurora Offshore II Fund, a multi manager, multi strategy fund of hedge funds, was also selected by the AvSuper Investment Committee. Established in 1988, this fund similarly seeks capital appreciation with low volatility and little correlation with stock markets.
The Trustee found that US based manager Aurora Investment Management (represented in Australia by Apostle Asset Management) with over 21 years experience in hedge funds and staffed by a core group of very experienced hedge fund professionals, has a very well established investment philosophy based on extensive due diligence and the utilisation of a wide range of quantitative and qualitative processes to assess risk, and to build portfolios that achieve consistent rates of return, volatility and low correlation to stock markets.