AustralianSuper has completed phase one of its five-year plan to build an internal investment management team.
Phase one has seen the implementation of the systems, processes and people required to support the internal management of Australian equities, direct property and infrastructure investments.
The announcement comes more than a year after the super fund announced the five-year plan, which it said would reduce costs and increase net performance for members.
“There are a number of significant benefits to this project, primarily a cost reduction of up to 15 basis points. The amount of savings will grow as the fund grows,” said Mark Delaney, AustralianSuper’s deputy chief executive and chief investment officer.
“Fifteen basis points on a $100 billion dollar portfolio is $150 million back into members’ retirement savings,” he added.
The first phase of AustralianSuper’s internal investment management project has seen the super fund hire 23 new staff, including investment managers, the trading staff, analysts and operational specialists including risk and compliance.It has involved increasing the infrastructure and property teams and establishing the direct management capability, as well as establishing an Australian equities portfolio management team, a trading and execution team and commencing trading.
“There has been a huge amount of work to ensure we have the right people, systems, technology, policies and processes to ensure the success of this project,” Delaney said.
“It has touched almost every part of the fund’s operations, not just the investment team, and I am very pleased to say it has gone to plan and been delivered on time and on budget.”