State Street Global Advisors has been awarded three passive equity mandates by QSuper with a total value of around $10 billion.
The Australian Equities Index mandate, International Equities Index mandate and Global Real Estate Investment Trust (REIT) Index mandate all include a tax-aware component, according to State Street.
The deal reflects growing interest among superannuation funds in tax-aware mandates, while there has also been a strong market trend towards passive equities, according to State Street’s senior managing director in Australia, Rob Goodlad.
“Passive management has become a highly specialised skill and there are now a range of advanced beta strategies designed to capture unique returns, diversify portfolios or express specific investment views that aren’t achievable simply by tracking market capitalisation weighted indices,” Goodlad said.
An increase in State Street’s assets under management over the past year was mostly due to additional mandates, which could be partially attributed to the reliability of passive management in volatile markets, he added.
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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