CFS awards $1bn fixed income mandate to global manager
Colonial First State (CFS) has announced a significant mandate in Man Group, a global investment management firm.
The firm has awarded a fixed income mandate to UK-headquartered Man Group which has US$168.6 billion ($265 billion) in assets under management.
The company’s Boston-based systematic equities and credit investment manager, Man Numeric, received the CFS mandate with an initial allocation in Q4 2024 of over $1 billion in a strategy benchmarked to the Bloomberg Global Aggregate Index.
Man Numeric’s investment team is led by co-heads of fixed income and portfolio managers Paul Kamenski and Robert Lam.
According to CFS’ chief investment officer, Jonathan Armitage, Man Group’s innovative and disciplined approach to global fixed income was what set them apart from other competitors.
“I see systematic credit and fixed income becoming a growing part of how large institutions will access asset classes that were previously the domain of fundamental managers. It’s important that we have the right partners in place to provide our clients with a range of investment options,” the CIO said.
Hersh Gandhi, head of Asia-Pacific at Man Group, said the firm is looking forward to working closely with CFS over the coming years.
“At Man Australia we see increased investor interest in systematic approaches to fixed income, particularly as market complexity and data availability continue to expand,” he commented.
“We are excited to apply our systematic approach to the Global Aggregate universe. We thank CFS for their trust in Man Numeric, and we look forward to working with them closely in the years ahead.”
Fixed income has continued to enjoy growth in recent months, particularly in the form of Australian exchange-traded funds (ETFs).
Research from AUSIEX found that financial advisers are showing “renewed appetite” for fixed income ETFs, fuelling competition among global firms.
The data revealed that actively managed fixed income ETFs have come back in favour among advisers, with total advised holdings in domestic fixed income ETFs increasing by 55.3 per cent in the year to 31 January 2025, and close to 35 per cent more advised accounts holding the securities.
The asset class was particularly popular for advisers’ Baby Boomer clients, who were making up around 19 per cent of ETF buy trades and outstripping every other ETF strategy in 2024.
It also accounted for 11.4 per cent of buy trades for advised Generation X investors over the year to 31 January, highlighting advisers’ preference for this asset type among older investors.
AUTHOR
Jasmine Siljic
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