Industry super fund legalsuper has expanded its mandate with State Street as a part of its move to downgrade its active manager line-up and enlist a greater proportion of passive managers.
The $160 million mandate for legalsuper's international equity index fund was awarded after the fund questioned the extent to which higher active management fees led to outperformance, legalsuper chief executive Andrew Proebstl said.
Proebstl said the fund was aiming to increase the small passive holding it held within its choice index investment option, as most members were in the default option.
A further $37.5 million was awarded to Goldman Sachs Australian equity wholesale fund following redemptions from other existing Australian equity managers.
Andrew Proebstl said the refined manager line-up had been deployed with the assistance of the fund's investment consultant JANA.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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