First State Super reaches $100b in FUM

First State Super has reached $100 billion in funds under management (FUM) thanks to its direct asset investments.

The superannuation fund’s chief investment officer, Damian Graham, said as the fund grew in size and scale it would access more diverse investment opportunities, reduce fees over time, and deliver better returns.

“This is a significant achievement for our fund and our members,” he said.

“Five years ago, we decided that if we were to be a large fund we needed to invest in more direct assets such as property and infrastructure, and also look at more offshore opportunities.

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“Since then, we have worked hard to build our in-house capability, enabling us to deliver on this new approach and this milestone is recognition of the veracity of this strategy.”

Graham noted, as the fund grew, it would be in a better position to generate strong returns through investments in infrastructure, transport, health, affordable housing, new technologies, and renewable energy.

“These sorts of investments can also foster innovation, drive jobs growth and genuinely contribute to our community,” he said.

“This way, we not only deliver for our members, but we put their money to work, to be a force for good in their community as well.”

He noted that the fund was focused on the risk management side and had adjusted portfolios between shares and bonds due to the current volatility and in the lead up to the US election in 2020.

“We think that this can reduce risks and enhance returns over the long term,” he said.