US asset manager PineBridge Investments has formed a partnership with Sunsuper, one of Australia’s largest superannuation funds, to provide multi-asset solutions for the fund’s members.
They will share expertise and resources, with a particular emphasis on asset allocation, for the members and the wider superannuation industry, PineBridge and Sunsuper say in a joint statement on November 26.
According to the statement, Australia is the world’s fourth-largest retirement market with A$2.7 trillion (US$1.83 trillion) of total assets, and the figure is expected to increase to A$6 trillion by 2025.
Clinton Grobler, PineBridge’s managing director for Australia, says the mandate from Sunsuper will be overseen by the company’s 20-strong global dynamic multi-asset allocation team.
This team manages the PineBridge Dynamic Asset Allocation Fund in Australia and has expanded its multi-asset expertise to the pension industry, Mr. Grobler tells Asia Asset Management
The fund was launched in 2014 and now has more than A$1.4 billion of assets under management.
According to Mr. Grobler, multi-asset investing can help pension members meet their risk and return objectives in the low interest rate environment.
PineBridge will “complement [Sunsuper’s] long-term strategic allocation with an intermediate term dynamic” and “generate additional returns in order to achieve the objectives for their members”, he says.
PineBridge, which ventured into Australia in 2008, has other superannuation fund clients, including MTAA Super and Prime Super.
“Sunsuper’s partnership with PineBridge gives Sunsuper’s members access to PineBridge’s proven investment performance with the research partnership supporting Sunsuper’s internal dynamic asset allocation capabilities,” Ian Patrick, the fund’s chief investment officer, says in the statement.
PineBridge had approximately $96.9 billion of assets under management globally as of September 2019.
Sunsuper currently manages A$70 billion of funds for 1.4 million members.