AustralianSuper, the $42 billion superannuation fund, is examining whether to manage more of its own money.
“If the numbers stack up we’ll look at managing more money internally,” says Peter Curtis, head of investment operations at the Melbourne-based fund.
Curtis says AustralianSuper will be analysing its investment decisions throughout the next year.
“We’re going to examine the value we’re getting from our external managers minus the cost we pay, against how else we can deliver that net benefit,” says Curtis. “If we can get a better net return for members we’ll look at managing money internally.”
Innes McKeand, formerly head of equities at Aegon Asset Management in the U.K., will become AustralianSuper’s new head of equities. He will start work September 12.
McKeand will be working with the fund’s head of fixed income, property and infrastructure and chief investment officer Mark Delaney to assess AustralianSuper’s own investment decisions.
AustralianSuper manages $24 billion in stock investments. Nine Australian equity managers manage its investment in Australian shares. Eleven non-Australian firms manage its international equities portfolio.
AustralianSuper’s balanced superannuation fund had a 6.1 per cent annual return over the decade to June 30.
“We’ll continue to examine ways to manage our equity exposure,” says Curtis.