Club Super is the latest industry fund to consider alternatives in its strategic asset allocation, making way for the asset class in its growth investment option.
It said adding alternatives to the mix would allow greater diversification for members in that investment option, with private equity, hedge funds and infrastructure considered in place of shares, property, fixed interest and cash.
The alteration allows Club Super the flexibility to invest up to 15 per cent of the portfolio in alternatives.
Additionally, the fund has been authorised to offer its balanced options as a MySuper product, which it plans to launch in September.
Australia’s second-largest super fund has explained its approach to the Asian giant and how it is balancing underlying risk, adding that avoiding China altogether may not be a “doable strategy”.
New research indicates that industry superannuation funds are poised for significant growth, posing a challenge to traditional active managers.
Challenger reported growth of 190 per cent in lifetime annuity sales, having realised an “extraordinary” opportunity in retirement.
The ethical asset manager has launched an infrastructure debt fund in association with specialist manager Infradebt.
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