AustralianSuper

More regulatory pressure on valuation practices means big funds run the risk of missing out on attractive deals and members could face higher costs. But with Australia now at the forefront of defined contribution pensions globally, should GPs get with the program?

ASIC has launched civil proceedings against Australia’s biggest super fund over allegations it failed to consolidate the accounts of 90,000 members and continued to charge them fees.

Size, internalisation and globalisation are now front of mind for every large fund in Australia – but every fund approaches them differently, and there’s little agreement on the benefits of the new offshore push.

Australia’s biggest super fund has sharpened its focus on offshore markets with the appointment of a new head of international and private equity operating out of its London office.

Everybody’s anticipating a sweeping technological revolution, but they haven’t stopped to think about whether they’ll actually profit from it. More likely than not they’re holding onto horses when everybody’s making cars.

With Cbus eyeing the $100 billion mark, it’s figuring out what it can do well and what should be left to everybody else. And while other funds can’t wait to head overseas, it’s decided to stay home.

If greed is good in the world of private equity, it’s anathema to super funds and other pension plans with members that will never make as much money as the people who manage their retirement savings.

Some of the country’s biggest super funds have navigated volatile markets and write-downs in one of their favourite asset classes to deliver solid returns in a tough year.

Big funds can be cheaper and drive hard bargains in the private markets – but it’s easier to see them coming and harder for them to get money where it needs to go.

AustralianSuper’s appointment of a new deputy CIO with the lion’s share of responsibility for its overseas investments demonstrates the growing importance of international diversification for the country’s biggest funds.