Industry funds-backed IFM Investors has broken ground on support for its recently-launched global index strategy.
The fund manager announced today that it had received its first mandate for the strategy with $500 million received in-specie from HESTA.
The global indexed equity strategy is the result of extensive collaboration between IFM Investors and its Australian clients, and chief executive Brett Himbury said the new mandate with HESTA is a significant milestone for IFM Investors.
"In a competitive landscape, the launch of a robust, cost-effective global indexed equity strategy demonstrates our clients' willingness to engage with IFM Investors in product development," he said.
Commenting on the mandate, HESTA chief investment officer, Rob Fowler said Australian superannuation funds increasingly required access to bespoke global equity capabilities.
"We believe IFM Investors' long-term focus will continue to benefit our members," he said.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
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