The Australian Meat Industry Superannuation Trust (AMIST Super) has appointed Colonial First State to manage a $12 million credit mandate.
The industry superannuation fund will invest in Colonial First State's Global Income Credit Fund.
"The focus of the fund is to take advantage of the current credit spreads, while swapping out of the underlying risk-free bond duration risk, reducing price movements if bond yields move," AMIST Super chief executive John Livanas said.
The mandate will sit in the fund's alternatives portfolio.
"We see the fund as having somewhat different characteristics of a fixed income product. As such it was more appropriate to place this in the alternative asset class portion of our portfolio," Livanas said.
He said an extensive due diligence process was undertaken with each of the trustee directors before investing in the fund.
"Each director was appraised of the specific product features, risks, returns and underlying portfolios," he said.
"So when it came time to invest in the product, our board had subjected the guys at Colonial to an extensive inquiry."
As a result of the mandate appointment the fund terminated an existing agreement with Barclays Global Investors.
