AustralianSuper has picked up a major new corporate superannuation mandate, with New Zealand-based building products company Fletcher Building Limited outsourcing the funds covering workers at its Australian subsidiaries — Rocla, Laminex, Stramit and Fletcher Insulation.
The mandate represents a substantial win for AustralianSuper, which is the result of a recent merger between the Australian Retirement Fund and the Superannuation Trust of Australia.
The mandate involves around 2,900 employees and $200 million in funds under management.
Fletcher Building chief financial officer Bill Roest said AustralianSuper had been selected on the basis of its strong historical investment performance, solid investment process and low insurance costs.
The mandate means AustralianSuper’s corporate division now has 22,000 members and $1.2 billion in funds under management.
The sovereign wealth fund grew $11.5 billion in the March quarter, according to its latest portfolio update, having previously voiced caution about inflation’s downward trajectory.
The property group, owned by industry super fund Aware Super, has announced two new projects with a total construction value of $320 million that will add more than 700 homes to Melbourne’s rental market.
While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their involvement in addressing the substantial capital requirements vary widely.
Despite a period of increased volatility, several considerations suggest that the bull market will remain intact and the trend in shares will remain up, an economist has suggested.
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