Investment Magazine
 

IAG seeks new CIO for $11.9 billion in assets

  • 7 February, 2012
  • 0
  • print

John Stratton, who oversees $11.9 billion as chief investment officer of Insurance Australia Group (IAG), will leave the company in late April to join Brit Insurance in a similar role.

Stratton will be the London-based chief investment officer of Brit Insurance and report to chief executive Mark Cloutier, according to an IAG spokesman and a Brit Insurance statement.

Stratton has been CIO at Sydney-based IAG since 2003. IAG is assessing investment professionals within the company and at other businesses as it seeks to replace Stratton, the spokesman says.

Stratton was responsible for portfolios that invested IAG’s insurance reserves and excess operational capital. Both provided a return of 5.9 per cent for the financial year ending July 2011 but invested different amounts of capital in fixed income, cash, stocks and alternative assets, the company’s report to investors, issued on August 25, 2011, shows.

Ninety-nine per cent of IAG’s $8.3 billion in so-called technical reserves, or funds used to back outstanding insurance liabilities, was invested in fixed interest and cash securities. They helped earn income of $489 million. The remaining 1 per cent was invested in alternative assets.

Fixed income and cash securities were 58.9 per cent of the $3.6 billion of so-called shareholders’ funds, which represent shareholder equity not used in day-to-day business. The securities helped earn $213 million of income. Australian stocks were 18.1 per cent of the portfolio and international stocks 5.4 per cent. Alternative assets were 17.6 per cent.

Stratton oversaw an increase in IAG’s investments in “growth” assets. Since July 2009, the proportion of its investments in stocks and alternative assets grew from less than 22 per cent to 41.1 per cent.

© Copyright: Whole articles from this website and newsletter cannot be reproduced without permission from the editor. If you wish to publish introductions to any article please ensure that it links to original content site www.investmentmagazine.com.au, and that it shows clear attribution to Investment Magazine, plus author name and date. Failure to abide by this request will be considered a breach of copyright and legal action will be taken.

Vote
Is core property and global infrastructure heading for a price bubble?
 

Mercer to launch pooled self-annuitisation product

Mercer is to launch a group self-annuitisation product into the Australian market next week. The full details have not yet been disclosed, but ... [more]

in News

Future Fund co-invests to eke out extra return

The Future Fund is accelerating its program of co-investments as a means of improving its margin of return. Its investment team broadly agrees ... [more]

in News

AustralianSuper questions MySuper debate

AustralianSuper has broken a long silence on the MySuper debate by defending itself from criticism that it has not innovated. Alistair Barker, investment ... [more]

in News

Line-up of industry experts to choose best superannuation funds

Conexus Financial, the publisher of Investment Magazine and Professional Planner will again recognise outstanding achievement in superannuation when it hosts the third Superannuation Fund ... [more]

in News

Paul Sayer to become CEO of TWU Super

Paul Sayer is to leave his post as chief operating officer of REST Superannuation to become chief executive of TWU Super. Sayer will ... [more]

in News

Anne Whittaker to retire in December

Anne Whittaker, chief investment officer of Australian Catholic Super is to retire and will leave in December after more than six years at ... [more]

in News

Conservative options face grim five-year forecast

A scenario analysis tool developed by Frontier Advisors is confronting superannuation funds with the likelihood that their return objectives could be difficult to ... [more]

in News

Superpartners: The journey to Rhodes

“You really should visit our offices in Rhodes”. In a sector renowned for thinning profit margins and risky, expensive product development, the ebullience ... [more]

in News

Whitehelm Capital wins first advisory client in 8 years

Whitehelm Capital, formerly Access Capital Advisors, has reopened its advisory arm for targeted business after several years of being closed to new clients. ... [more]

in News

Three funds move into social impact investment space

The $31 billion QBE investment portfolio is to place $100m in social impact bonds in the belief that opportunities for such investments will ... [more]

in News

ACSI: Australian companies, probably the best governed in the world

The standard of governance among listed Australian companies leads the world, states the Australian Council of Superannuation Investors’ (ACSI), after it unveiled progress ... [more]

in News

Sunsuper seeks more smart partnerships with fund managers

Sunsuper is to expand on its success in partnering with distressed debt and private equity managers by seeking partnerships with listed equity managers ... [more]

in

Is our industry authentic about serving all members?

Many thought Alice Springs was an odd choice for last week’s AIST ASI conference. Perhaps the rationale was not explained well, but CEO ... [more]

in News

Product dashboards to reveal fund rankings

Super funds may soon have to display industry average fund performance and fees on their MySuper product dashboards. Speaking at the AIST ASI ... [more]

in News

QSuper spreads word on peer unaware benchmarks

QSuper used two sessions at the AIST ASI conference to explain its shift away from peer-benchmark investing, following its move to cohort strategies ... [more]

in News

Ken Marshman’s riposte to Grattan Institute report

An alternative set of proposals for reducing costs and boosting competition to those in the Grattan Institute Super Sting report, were presented by ... [more]

in News

Tasplan-Quadrant to lay down law to global equity managers

A combined $4 billion Tasplan and Quadrant Super is to reassess all global equity managers on their willingness to screen out tobacco stocks. ... [more]

Budget crisis? What crisis? Four investors give their views

Talk of an economic crisis has dominated the front pages of newspapers ever since Joe Hockey delivered his budget speech on May 13. ... [more]

in News

Numbers moving to SMSF stalls

David Atkin, chief executive of Cbus has declared the growth in members of industry funds leaving for self-managed super funds at an end. ... [more]

in News

Banks and industry funds unite against FSI proposals

“It is clear…. that the banking system is considerably less competitive than the superannuation system, is systemically more risky and extracts a greater ... [more]

in Opinion

The political shame in delaying rises in SGC for 7 years

There is a global pension underfunding crisis and yet Australians are set to lose $128 billion in savings because the Federal Government has ... [more]

in News

AMP Multi Asset Group structure finalised

AMP has finished the centralisation of its fund manager teams, creating four separate chief investment officer roles under the leadership of Sean Henaghan. ... [more]

in News

Future Fund creates twin leadership roles

The Future Fund has promoted internally to fill its chief investment officer role, while passing the responsibility for portfolio risk setting to another ... [more]

in News

RiceWarner: beating annuities “easy” for super funds

Superannuation funds can offer retirement accounts that easily exceed the income from annuities, believes Rice Warner. Michael Rice, chief executive of the actuarial ... [more]

AustralianSuper claims growing influence on ASX200 governance

Superannuation funds are winning their efforts to make Australian companies adopt long term thinking, according to Andrew Gray, investment manager, governance at AustralianSuper. ... [more]

in News

David Murray profile: superannuation put on trial

How worried should the superannuation industry be by the contents of the Financial System Inquiry’s interim report? The comments made by David Murray ... [more]

in News

REST credits insurance rethink as they scoop top fund award

REST Super scooped Super Fund of the Year, in large part due to pioneering a new insurance offering for members said Damian Hill. ... [more]

in News

QSuper wins pension fund of the year

QSuper has been chosen as Pension Fund of the Year for the second year running at the Chant West | Conexus Finanical Super ... [more]

Super fund award winners named

The winners of the Chant West | Conexus Financial Super Fund Awards have been announced at a ceremony at Ivy Ballroom in Sydney, ... [more]

in News

Peter Baker to lead Mercer’s custodian and manager due diligence team

Mercer has appointed Peter Baker, formerly managing director of BNP Paribas Securities and Services in Australia, as the head of its Sentinel team ... [more]

in News

Retail fund directors scrutinised over commissions

The revelation that as much as seven per cent of money in APRA-approved default funds will pay out commissions to advisers until 2017 ... [more]

in

Profile: Michael Strachan, CIO, Equip

Michael Stachan, chief investment officer, Equipsuper refers to his team as investment managers and risk managers, whose job is to preserve its $6.5 ... [more]

in News

Australia moves to second place on global pension index

The ranking of Australia’s superannuation system has moved from third to second best system in the world largely due to the recent increase ... [more]