IOOF awards $100 million mandate to Legg Mason

5 June 2013

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IOOF has expanded its multi-manager funds line-up after developing an Australian equities and listed property fund with Legg Mason, handing the latter $100 million in mandates for the two funds. 

IOOF said both funds were developed in conjunction with Legg Mason. The Australian equity offering - titled as 'Dynamic Value’ - is able to switch investment styles from its core strategy to a value strategy as markets turn. 

IOOF said the fund was developed in view of concerns that Australian equity investors might miss out on potential gains when market sentiment turns. 

IOOF stated the main benefit of the style-shifting fund was that changes could be made to the underlying portfolio between the value and core styles without having to buy and sell funds or appoint new managers. 

The listed property fund, which is a low concentration A-REIT vehicle, was developed to provide A-REIT exposure while avoiding the potential risk of over-concentration from holding too few stocks at high weightings. The fund limits the largest stocks to a maximum percentage weighting, allowing the fund to achieve active positions instead of concentrations toward smaller property trusts. 

IOOF chief investment officer Steve Merlicek said the two funds offered a point of differentiation from other multi-managers and had outcomes better designed for fund investors in the long run. 

At present IOOF manages more than $8 billion FUM across its multi-manager strategies, which it offers to planners within its own networks and independent financial advisers. 




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