MLC chases debt market opportunities
MLC has added a Global Alternative Debt Strategy within the diversified portfolios of its retail and wholesale superannuation and allocated pension clients.
An allocation of US$370 million has been tailored within each diversified portfolio in this offering as part of the strategy.
It will make up 1.5 per cent of the total portfolio for a client with 70 per cent in growth assets and 30 in debt.
It will initially focus on investment opportunities within the liquidity-squeezed global bank loan market, but may evolve to take advantage of further opportunities.
According to MLC portfolio manager, debt, Peter Sumner, “By investing in bank loans we are taking advantage of the current debt market opportunities caused by the evolving credit crunch and its contagion effects.
“Global Alternative Debt is an opportunistic debt strategy which complements MLC’s existing Diversified Debt Strategy.
“It adds another layer of diversification and the opportunity to add returns in a part of the market that we believe is currently inefficiently priced.”
US specialist manager Oaktree Capital Management, which currently manages a high yield debt portfolio for MLC’s diversified debt strategy, will also manage the new strategy.
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