Australia's A$2.1t pension funds working to cut out the middleman

Sydney

AUSTRALIAN pension funds are luring dozens of portfolio managers to work in-house to boost returns in a cut-throat investment environment, a move that could see external fund managers lose A$230 million (S$246 million) in annual fees.

Two of Australia's largest pension funds, AustralianSuper and Cbus, intend to manage in-house at least 20 per cent of their combined A$140 billion in assets within the next decade.