A $34 billion Australian superannuation fund has awarded a $700 million mandate to GSFM fund manager partner Payden & Rygel. The mandate funded in Q4 2023 at $400 million, with two additional contributions to the portfolio in 2024.

GSFM head of institutional business, Charles Levinge, said the super fund was looking for a diversified credit portfolio to complement its high-grade bond exposure, and the Payden Multi Asset Credit (PMAC) strategy was a good fit.

“This mandate is a reflection of the continued interest we’re seeing in strategies offering high yield-like return, with lower volatility, giving investors an attractive risk-adjusted option, within public fixed income,” Mr Levinge said.

“The strategy invests in a multi-sector portfolio of global government, corporate, securitised, and emerging market debt. It takes an active approach and moves dynamically across sectors and individual securities with the aim of achieving its return objective of overnight deposit rates plus 3-to-5 per cent.”

The strategy takes advantage of Payden’s broad investment resources by incorporating the most compelling risk-adjusted opportunities from each sector team.

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GSFM

GSFM focuses on creating strong alliances with high calibre investment managers, in Australia and overseas, which offer quality investment strategies not available to Australian retail and institutional investors. Today, our portfolio spans global, Australian and Asian equities, fixed income and private credit, as well as alternative strategies.

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