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.
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.