The $200 billion super fund has completed a major platform overhaul designed to strengthen the fund’s investment capabilities and support future growth.
Project Odin was a major multi-year technology program designed to strengthen the fund’s investment capabilities and support future growth.
The final phase of the project involved the implementation of BlackRock’s Aladdin investment platform, creating an integrated system across public and private markets and supporting the fund’s growing internal investment operations.
Previous upgrades had included the GoldenSource Investment Data Platform, Ortec PEARL Performance and Attribution and the BlackRock eFront for private markets.
Chief investment officer, Simon Warner, said the project marked a significant milestone for the fund.
“With Aladdin now in place, we have a modern, institutional-grade platform that enables our investment teams to make faster, better-informed decisions on behalf of our members,” Warner said.
“Aladdin gives us the scale and capability to manage more of our investments internally, reduce costs, strengthen risk management, and ultimately deliver stronger long-term returns.”
Aware Super said its investment team now manages around $60 billion internally, one of the highest proportions in the superannuation sector, with the upgraded platform designed to support future scale, new asset classes, international expansion and potential merger activity.
“Our members entrust us with their retirement savings, and the implementation of Aladdin helps us to ensure we can manage those savings with the sophistication and discipline of a global institutional investor,” Warner said.
“Odin has transformed the investment engine that drives their returns.”
As well as the technology upgrade, the fund has sold a majority portion of its Australian water portfolio.
The fund announced the sale of 83 gigalitres of water entitlements from the southern Murray-Darling Basin through the Commonwealth Government’s voluntary water purchase program, unlocking capital for future infrastructure investments.
The transaction forms part of Aware Super’s 143GL water portfolio, one of the largest independently-owned water entitlement portfolios in Australia, and follows a sale process involving both public and private sector buyers.
Aware Super said proceeds from the transaction would be redeployed across its $25 billion infrastructure portfolio, where water entitlements have generated member returns since the assets were originally acquired through VicSuper in 2007.
Head of infrastructure Mark Hector said the sale would provide additional flexibility to pursue new opportunities.
“We are delighted to achieve this positive outcome for our members with the proceeds received from this sale providing additional capital to pursue emerging opportunities across our infrastructure portfolio,” Hector said.
The Murray-Darling Basin spans more than one million square kilometres across New South Wales, Queensland, South Australia, Victoria and the Australian Capital Territory, supporting more than 40 per cent of Australia’s agricultural output.
Aware Super will retain approximately 60GL of water entitlements following the sale, including around 18GL linked to its almond portfolio, which comprises five horticultural properties across South Australia, Victoria and New South Wales and is currently being marketed for sale.
While reducing its exposure to water assets, the fund indicated it remains active in the sector.
“As an active manager, Aware Super will also continue to explore opportunities to maximise returns across its remaining water entitlements, including the potential for further transactions,” Hector said.
