Fund Company Update

High polluters added to HESTA watchlist

AGL, Origin, Santos and Woodhouse have all been put on HESTA’s engagement escalation framework watchlist. HESTA said the companies’ strategic targets were not aligned with the Paris agreement in all facets. Companies on the watchlist are more closely monitored for progress on climate goals.

Australia has 15 top-ranked pension funds

A global survey by the Thinking Ahead Institute of pension funds has ranked AustralianSuper in 20th place in the Pensions & Investments list, alongside 14 other Australian superannuation funds. The annual survey lost one other Australian super fund off the list taking the total to 15. Many funds fell in rankings last year, said to be due to the weakening of the Australian dollar in 2021. AustralianSuper has grown, mainly due to mergers.

Aware Super launches real estate platform

Aware Super has launched Aware Real Estate, a property platform that will eventually host $7 billion in assets as part of a push for lower fees and strong returns. The platform will actively manage directly-owned Australian living, industrial, office and mixed-use property portfolio, which currently holds 11 operational assets, almost all occupied, and eight sites under planning or development.

Pendal bought by Perpetual

Penal has been 100 per cent acquired by Perpetual under a scheme of arrangement unanimously agreed by the board. Pendal shareholders will get one Perpetual share for every 7.5 Pendal shares owned, plus $1.97 per share, funded by a new debt facility. Combined assets under management with the two entities would be $201 billion and $1.4 billion in reserve. The Pendal brand will be retained, with current Perpetual chair Tony D’Aloisio chair of the combined group and chief executive and managing director of Perpetual, Rob Adams, would lead the group. Three Pendal directors will be offered a spot on the Perpetual board.

MetLife IM to buy AIM

Affirmative Investment Management (AIM) has been bought by MetLife Investment Management. AIM is an ESG-focused investment firm. MetLife IM will absorb AIM’s investment experts, processes and research capabilities to develop ESG-focused investment solutions while building on its research, underwriting and security selection processes.

Equity Trustees to acquire AET

Australian Executor Trustees (AET) has been bought by Equity Trustees for $135 million. The acquisition will add $5.4 billion in funds under management to Equity Trustees.

Mercy Super and HESTA merger talks

A successor fund transfer deed has been signed by Mercy Super and HESTA for a merger, set to go ahead by November 30. Mercy’s 13,000 members will be transferred into HESTA, creating a joint entity with over $70 billion in funds under management.

CareSuper looking to merge

CareSuper has made it known they are looking for a merger partner to create a $50 billion fund. There are no names on the table yet, but the process has begun.