Aware increases in-house management target
Industry fund Aware Super has increased its target for internally-managed funds, as it seeks to take advantage of the cost savings from in-house management.
In 2021, the industry super fund, which had more than $150 billion in assets under management, said it was targeting 40%.
At the time, it said: “Aware plans to increase the proportion of its internally-managed assets across its portfolios from around 20% to 22% currently to around 40% over the next five years.”
This included Australian equities, international equities, cash and fixed income.
It had now increased this percentage to 50% by 2025, covering all asset classes.
The option of whether to bring fund management in-house or have it managed by external third parties was a divisive decision with some funds opting to have large proportions in-house and others opting out completely.
Australian Retirement Trust and Hostplus have both stated they are avoiding in-house management as they feel it is difficult to retain talent and they can negotiate better deals with external managers.
On the other hand, UniSuper had over 70% of its funds under management managed internally and Australian Super was targeting more than 75% as they believe it reduced investment fees and total costs for members.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The proposed changes to the Low-Income Superannuation Tax Offset (LISTO) has been applauded by the superannuation sector.
The regulator plans to claim compensation from Equity Trustees after Macquarie’s payout to affected Shield investors.
Morningstar has found the Your Future, Your Super test delivering fewer failures, but warned against complacency as regulators review its design.
Super funds have recorded modest gains in September as global equity strength and an AI-driven rally lifted investment returns.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
3
DomaCom DFS Mortgage
67.30 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
