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Challenger appointed ABSF investment manager

The government’s AOFM has appointed Challenger Investment Partners as the external investment manager to oversee the administration and portfolio maintenance of the new business securitisation fund.

Challenger Investment Partners will now oversee the management of the federal government’s Australian Business Securitisation Fund (ABSF).

The ABSF provides additional funding to smaller banks and non-bank lenders to on-lend to small businesses on more competitive terms.

The fund will be administered by the Australian Office of Financial Management (AOFM), which was previously involved in the residential mortgage-backed securities market in 2008.

In August, the AOFM released a request for tender, in order to find an investment management service to oversee the administration and investment portfolio.

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The manager needed to display “extensive experience managing structured credit investments” such as through warehouse facilities, either for institutional clients or in a managed fund context, according to the tender request.

Following a successful tender, Challenger Investment Partners will now be responsible for assisting with the evaluation of investment proposals sent to the AOFM, as well as provide ongoing portfolio management services to assist the AOFM in its administration of ABSF investments.

The contract with Challenger will exist for an initial two-year term, with the option to extend for another two-year term in the first renewal instance, and then a second renewal of a further one year.

There is also an option to extend the contract beyond the second renewal term, at the Commonwealth’s discretion.

The AOFM has said it is now in a position to finalise its investment proposal assessment process for the ABSF and expects to release a call for investment proposal by mid-December.

Instructions on how to submit an investment proposal, including information and date the AOFM will seek from proponents, will be released at that time.

[Related: Regulators commit to greater collaboration]

Challenger appointed ABSF investment manager
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