Colonial outsources LPTs to Pengana
Colonial First State has awarded half of the listed property trust (LPT) portfolio in its balanced fund to Pengana Capital.
The Pengana LPT team, part-owned and run by Ern Koh and Mark Thorpe-Apps, was already accessible through Colonial Firstchoice as well as the BT and Macquarie Wraps.
This new mandate, equating to $300 million, will give advisers access to the team through Colonial’s corporate and personal super balanced funds. It replaces a previous mandate with Deutsche Asset Management.
Pengana returned a net 35.4 per cent in 2004, beating the index by 3 per cent, partly due to its ability to invest up to one-fifth of its portfolio outside the index in global property trusts and smaller local vehicles.
Now managing $500 million, Thorpe-Apps said Pengana would accept another $200-300 million of wholesale mandates, and then ‘soft close’ to retail money when it reached 2 per cent of the Australian LPT sector capitalisation - currently a figure around $1.2 billion.
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