Treasury Group has created an investment advisory committee to advise Premium Investors on its asset allocations to various fund managers within Treasury Group.
Treasury Group is the investment manager for Premium Investors.
The committee was created in an attempt to counter continuing market volatility, with Treasury Group managing director Mark Burgess declaring that a more active investment strategy was needed to drive above-average returns.
Burgess said that while Premium’s previous system of asset allocation was working before the change, he believed that future market volatility demanded Treasury Group “bolster” Premium’s asset allocation system.
Burgess drew attention to exposure to the Australian dollar currency and offshore exposure between markets as areas of concern.
Historically, Treasury Group determined its asset allocations through an internal investment committee, but it decided to bring in further expertise for Premium. The Premium committee would remain under the “umbrella” of Treasury Group, Burgess said.
“This group will set the macro-economic environment and make recommendations, and those will be signed off by the Treasury committee,” Burgess said.
“The committee will act as an adviser, providing economic and market outlook, which will drive the allocation of Premium funds,” Burgess said.
“We believe economic cycles have become more volatile and that this requires more active selection,” he added.
The members of the committee were recruited from outside Premium Investors and include Burgess, managing director of Pennywise Investment consultancy David Bassanese and Investors Mutual equity strategist Paul Winter.
Company shareholders and investors will be able to access the views of the committee through Treasury Group’s website.
