Australia’s superannuation funds have nearly the highest proportion of internal asset management in the world, but there’s plenty of questions hanging over the practice even as funds push into more expensive niche asset classes.
The retirement chief of the $335 billion AustralianSuper, who was “instrumental” in delivering a slew of member experience uplifts across a 17-year stint with the fund, will leave this month to establish a new venture.
Schroders launches dedicated YFYS fund
Schroders has launched likely the first dedicated fund managed directly to the Your Future, Your Super (YFYS) benchmark for alternative investments.
The Global Active Allocation Fund, which has secured a foundation investment mandate from a large super fund, is a multi-asset portfolio with the objective of outperforming the YFYS benchmark applying to alternative investments and strategies by between one and two per cent per year.
“The Schroder Global Active Allocation Fund demonstrates our ability to design solutions that meet clients’ needs,” said Schroders Australia CEO Sam Hallinan. “In response to a large government super fund’s need for a strategy that managed directly to the YFYS alternative asset benchmark, we created a multi-asset fund that aims to outperform within a tracking error limit. We bring our considerable experience to bear in partnering with the fund on this investment opportunity”.
The fund “aims to provide a core solution for funds in the liquid alternatives space”, as it is risk managed to the YFYS alternatives benchmark, and will be run by Schroders’ Australian multi-asset team with Angus Sippe as lead fund manager.
“The fund takes a forward-looking approach to asset allocation and risk management, allowing for tactical positioning around the YFYS alternatives benchmark (50 per cent global equities/50 per cent global bonds),” Sippe said.
“However, the fund’s investment universe is broader and is not constrained by the constituents of the YFYS alternatives benchmark. It has a broad universe of investments including traditional assets as well as exposure to alternatives, active currency, and derivative strategies.”
The launch of the fund follows the recent promotion Simon Doyle to the newly-created role of Australia chief investment officer in addition to his role as head of multi-asset Australia. Natalie Morcos has also been appointed to the newly created role of head of product and solutions.
“The launch of this fund is an example of Schroders’ commitment to meeting our clients’ needs, to access a strategy designed for a specific purpose, and offering an all-in-one solution,” Doyle said.
