NSW Treasury ends AMP Capital infra mandate

State’s Treasury Corporation is set to internalise AMP Capital’s mandate to manage public pension fund State Super’s stakes in a South Australian ports group and a Melbourne toll road.

New South Wales’ Treasury Corporation has ended AMP Capital’s mandate to manage two key Australian infrastructure investments on its behalf.

Infrastructure Investor understands TCorp has moved to take full control of its public pension fund State Super’s stakes in Flinders Port Holdings – which owns South Australia’s Flinders Ports and Flinders Logistics – and Melbourne toll road, the Peninsula Link freeway.

Both investments had been managed by AMP Capital. The decision to end AMP Capital’s mandate was confirmed by a source close to State Super.

A source close to AMP Capital also confirmed the decision, which marks the firm’s first infrastructure mandate loss in years, noting the firm was working closely with TCorp to ensure a smooth handover.

According to the source, the firm had been aware for some time of NSW TCorp’s plan to invest in its own team with a view to internalising asset management. TCorp had expanded its infrastructure equity team over the past year and, having built out its team, had chosen to internalise the AMP Capital mandate, the source added.

Both assets are said to have performed well under AMP Capital’s management. The firm and TCorp are expected to maintain their working relationship as long-term co-investors in Melbourne Airport, where AMP Capital and State Super hold 27.3 percent and 18.5 percent stakes, respectively.

AMP Capital and State Super declined to comment.

The firm recently fought off a bid by Plenary Group to take over its A$1.4 billion ($1.02 billion; €868.9 million) Community Infrastructure Fund. Plenary’s proposal was rejected by the fund’s independent board committee in July.

In June, new chief executive Shawn Johnson was appointed to lead AMP Capital, after an almost year-long search for a new CEO. The firm has also seen a number of leadership changes within its infrastructure equity team in recent months.

The firm’s ASX-listed parent company, AMP Limited, is currently pursuing a demerger and public listing of AMP Capital’s private markets business, which is set to be completed in the first half of 2022.