POWERED BY MOMENTUM MEDIA
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
Australia’s superannuation sector has expanded strongly over the June quarter, with assets, contributions, and benefit payments all recording notable increases.
The Super Members Council (SMC) has called on the government to urgently legislate payday super, warning that delays will further undermine the retirement savings of Australian women.
ASFA has highlighted that regulation should not be “set and forget” and calls for a modernised test to meet future needs.
The super fund is open to the idea of using crypto ETFs to invest in the asset class, but says there are important compliance checks to tick off first.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
