Sunday, September 9, 2012

AustralianSuper to Manage Equity In-house

The Australian has reported that AustralianSuper, Australia's largest industry superfund, is planning to manage some of its $15 billion of Australian equity investments, which are currently managed externally.

AustralianSuper head of equities, Innes McKeand told The Australian that the fund was 'in the process of putting a platform in place' to oversee some of its Australian equity investments.
The move would be a blow to the funds management industry which is already struggling with low volumes, soft equity markets and fund outflows.

The moves come as active equities managers face pressure to perform in the face of a shrinking number of investment mandates, driven by super fund mergers and a shift to other asset classes.
Mr McKeand told The Australian that while AustralianSuper would continue to award mandates to external managers, its internal platform was being built 'to cope with a significant amount of funds' to be run by fewer than 10 fund managers.

It is thought that other funds such as UniSuper and Telstra Super are considering a similar move due to their build-up of an in-house stock-picking team.