Capital International has lost part of its mandate in the MLC Global Share Fund, following a restructure.
Capital International merged the existing standard institutional global developed markets and global emerging markets product mandates into a single All Country World (ACWI) mandate.
MLC has become the foundation investor in the new mandate.
The resulting restructure sees the newly merged ACWI mandate holding drop three per cent to 18 per cent of the MLC Global Share Fund portfolio.
MLC previously had a 20 per cent and 1 per cent allocation to the global and emerging markets products respectively.
Beneficiaries of the change are Wellington Management Company and Dimensional Fund Advisors, with holdings increased by two and one per cent respectively.
The new higher conviction ACWI portfolio has three portfolio managers who manage their sub-portfolio against an "all countries" benchmark and are not constrained in terms of regional, country, sectoral or stock specific positions.
This more concentrated strategy will result in a portfolio containing about 130 stocks.
According to MLC there will be no change in the current management expense ratio.
"MLC continues to believe that Capital is one of the best global share managers in the world. However, MLC believes that a more equal allocation across managers is likely to produce more consistent performance...," a spokesperson said.
The MLC Capital International Global Share Fund, MLC Global Share Value Fund and MLC Global Share Growth Fund are unaffected by these changes.
