Australian superannuation fund LGIAsuper has appointed Troy Rieck as its new chief investment officer.
Rieck is to join the Brisbane-based fund from Melbourne-headquartered Equip Super, where he had served as CIO since 2015 and overseen around A$15 billion ($10.2 billion; €9.2 billion) in assets under management. He will begin his new role on 23 September.
LGIAsuper is a not-for-profit industry superfund with its origins as the default fund for local government employees in the state of Queensland. It has approximately A$13 billion in AUM.
Its current CIO, David Todd, is retiring and will stay on through the end of 2019 to help with the transition.
Rieck is from Queensland and worked for QIC for 13 years until 2013, including serving as a managing director for its global multi-asset strategy. He also worked at insurer Suncorp Group in two separate stints, both in investment management roles.
In a statement, LGIAsuper CEO Kate Farrar said: “Mr Rieck is a highly skilled and innovative CIO with considerable experience running investments for a large superfund. In his previous role at Equip Super, his key achievements included lowering risk, producing significant cost savings and increasing returns for members.”
According to its 2018 annual report, the most recent available, LGIAsuper had 5.9 percent of its AUM invested in infrastructure.
This included commitments to several infrastructure funds, including A$414 million with Palisade Investment Partners, A$196 million with I Squared Capital, A$52 million with EQT Infrastructure and A$11 million with the Morgan Stanley Infrastructure Fund.
According to the annual report, LGIAsuper’s infrastructure assets returned “a stellar” 29.2 percent before fees and taxes in the 2017-18 financial year. “While the strong returns were attributable to extraordinary returns from our renewable infrastructure allocation, our core infrastructure assets provided ongoing reliable returns, which are expected to continue,” the fund stated in its report.
LGIAsuper primarily invests in Australian infrastructure but also across Asia, the US and Europe. “We will continue to build on this sector over the coming years,” the fund said.
It also had A$177 million invested with Westbourne Capital, classified as alternatives rather than infrastructure, and holds several investments in agriculture assets and funds.
Speaking to sister publication Agri Investor in February, Farrar said: “We know the agriculture sector pretty well. We opportunistically look for assets that will provide good outcomes for our members, but we do think that agriculture, if you get the right asset, is an attractive asset class in Australia.”