Tower enhances multi-manager line-up

TowerAustralia is rolling out the second phase of its multi-manager investment strategy, appointing DeutscheAsset Management and Macquarie Funds Management to focus on its Australian fixed interest and cash offerings.

“The successful introduction of the multi-manager approach with its robust investment disciplines has been a solid achievement resulting in competitive investment returns,” Tower’s chief executive officer Jim Minto says.

He says the group’s performance has been partly attributed to its shift to a multi-manager approach for Australian shares through Barclays Global Investors, Investors Mutual and Jenkins Investment Management.

Chief investment officer Guy Hutchings has steered the implementation of Tower’s multi-manager strategy, although he has signalled his intention to leave the group in October this year.

“Guy has driven this project extremely hard and has delivered strong investment and business outcomes. Having achieved this, Guy has decided it is time to seek new investment management opportunities and take on another more ‘hands-on’ type funds management role,” Minto says.

The Australian share portfolio delivered a gross return for the year to June 30 of 22.3 per cent, beating Tower’s benchmark of the ASX 300, which produced a return of 21.7 per cent.

Tower’s balanced growth fund returned 15.2 per cent gross for the year beating its benchmark of 14.7 per cent, while the more conservative Security Focus portfolio returned 8.6 per cent gross compared to its benchmark of 8.3 per cent.