The Labour Union Co-operative Retirement Fund (LUCRF) has awarded a $51.5 million mandate to Aviva Investors Absolute T250 Bond Fund.
LUCRF head of investment strategy Ben Samild said the T250 product had impressive downside risk management and low correlation to traditional bond and equity markets, making it a good fit for the industry fund's long-term investment objectives.
"We are looking forward to working with Aviva Investors, a firm which demonstrates both global strength and local market expertise," Samild said.
The Aviva Investors Absolute T250 Bond Fund targeted low volatility and low correlation to traditional bond and equity markets by applying a macro fixed-income strategy focused on global sovereign bond markets and interest rate disparities, Aviva Investors said.
It is managed by Aviva Investors deputy chief investment officer of fixed income Shahid Ikram and targets an absolute return before fees of the Euro Interbank Offered Rate (Euribor) plus 2.5 per cent and invests on both a long and short basis.
"The Aviva Investors Absolute T250 Bond Fund has an interesting approach in today's challenging market conditions, as it can adapt to changing macro-economic circumstances and thus potentially outperform in falling markets," Aviva Investors Asia-Pacific chief executive Craig Bingham said.
"We are proud to be working with LUCRF Super and look forward to meeting the needs of their investors."
LUCRF has over $2.8 billion in funds under management.
