Ipac restructures global share portfolio
Ipac has introduced a range of mandate changes in a restructure of the ‘growth-oriented’ segment of its global share portfolio to improve returns by having managers operate more concentrated mandates.
Ipac withdrew growth and value mandates with AllianceBernstein and a growth mandate with GMO in order to award growth mandates to three new managers in Harding Loevner ($375 million), Carnegie Asset Management ($240 million) and AllianceBernstein Global Thematic Research ($170 million).
Ipac also awarded a $375 million value mandate to Pzena Investment Management.
Ipac said a recent review found evidence that bottom-up fundamental managers who operated mandates focused on their highest conviction ideas were more likely to outperform over the long term.
Consideration of high conviction mandates in international shares also leads to a wider opportunity set of skilled managers applying diversifying processes and operating with different perspectives, and it is appropriate to maintain diversified mandates for quantitative managers, ipac stated.
Ipac’s growth segment makes up just under $800 million of its $2.7 billion global shares sector.
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