Australia’s construction and
building industry pension fund will build out its in-house investment
capabilities considerably, the fund announced Monday.
Cbus, which currently employs
an investment staff of 34, plans to boost that number to 59 over the fiscal
year as part of a new investment strategy focused on managing the fund’s
growing pool of assets. The superannuation fund, which currently manages A$34
billion (US$26 billion), said it expects to grow to more than A$50 billion in the next three to five years.
“The fund is on its next
exciting journey of growth and change, requiring new ways of investing,” said
Trish Donohue, executive manager of investment management at Cbus. “Our new
model will provide some great opportunities and challenges for the team over
the next few years.”
The new strategy is built on
three themes: taking advantage of a long-term investment horizon, taking a
total portfolio approach, and targeting investments that will “have a positive
impact on the real economy, particularly through the built environment.”
“Our new model is a clear path
to ensure we continue to deliver for our members into the future in a way that
can also make a positive contribution to the economy and society,” said
Kristian Fok, Cbus’ executive manager of investment strategy.
Fok said the fund would retain
its current external managers, but leverage a larger in-house team to make
direct investments in both new and existing infrastructure assets.
“Internal Australian and
international equities management also offers the opportunity to build
capabilities to manage specific strategies that complement our existing
managers,” he added.
To ensure the new model is
properly implemented and supported, Cbus said it will also be adding to
existing staff in the areas of compliance, operations, communications, risk
management, and performance reporting.
Largest Super to Grow Internal Team by a Third