Investment Strategy
Aware Super is one of Australia’s largest superannuation funds, managing approximately $160 billion in retirement savings for over 1.1 million members. The fund was formed through a series of mergers, most notably the 2020 combination of First State Super and VicSuper, followed by the integration of WA Super. Aware Super is structured as an industry superannuation fund, which means it is operated on a profit-to-member basis rather than for the benefit of external shareholders.
The fund serves members across a diverse range of industries, with particularly strong membership among public sector, healthcare, education, and emergency services workers. Aware Super offers a range of investment options for members, with the majority of assets invested in the fund’s default MySuper option, which employs a diversified multi-asset strategy.
Aware Super’s investment strategy is built on several key principles: long-term orientation, broad diversification across asset classes and geographies, active management where it adds value, cost efficiency, and integration of ESG factors. The fund’s asset allocation spans Australian and international equities, fixed income, real estate, private equity, infrastructure, private credit, and hedge funds.
The fund has built a substantial internal investment team that manages a growing share of assets in-house. This internalization strategy is designed to reduce costs, improve alignment, and give the fund greater control over portfolio construction and implementation. Aware Super’s internal capabilities span public markets, private markets, and portfolio strategy.
Private Markets Approach
Aware Super has one of the most developed private markets programs among Australian superannuation funds. Alternatives represent approximately 25% of the default portfolio, spanning private equity, infrastructure, real estate, and private credit.
In private equity, Aware Super commits capital to a diversified portfolio of external GP funds covering buyout, growth equity, and venture strategies across North America, Europe, Asia, and Australia. The fund also makes direct equity investments and co-investments, leveraging its internal team’s capabilities to source and evaluate individual transactions. Aware Super’s scale allows it to participate in larger co-investments and negotiate favorable fee terms with GP partners.
Infrastructure is a major allocation for Aware Super. The fund has been a pioneer among Australian superannuation funds in direct infrastructure investing, with a portfolio that includes airports, toll roads, ports, utilities, renewable energy, and digital infrastructure assets globally. Aware Super’s internal infrastructure team manages both direct investments and fund commitments. The fund has been active in energy transition infrastructure, investing in wind, solar, and battery storage projects.
Real estate is a significant component of the portfolio. Aware Super has a substantial direct property portfolio in Australia, including office, industrial, residential, and retail properties. The fund also invests in international real estate through fund commitments and platform investments. Aware Super’s internal real estate team manages property acquisitions, development, and asset management.
Private credit has been a growing allocation. The fund invests in direct lending, structured credit, and specialty finance strategies through external managers and internally originated transactions. These investments provide income generation and diversification relative to the public fixed income portfolio.
Aware Super’s approach to private markets emphasizes active ownership, cost efficiency, and responsible investment. The fund integrates ESG considerations into all private market investment decisions and actively engages with portfolio companies and GP partners on sustainability issues.
Frequently Asked Questions
How much does Aware Super allocate to alternative investments?
Aware Super allocates approximately 25% of its default investment option to alternative investments, spanning private equity, infrastructure, real estate, and private credit. The fund has one of the largest alternatives programs among Australian superannuation funds and has been investing in private markets for over two decades. Aware Super manages a significant portion of its alternatives investments internally through its in-house team.
What is Aware Super's background?
Aware Super was formed through the merger of First State Super and VicSuper in 2020, followed by the merger with WA Super. The fund now manages over $160 billion for approximately 1.1 million members, making it one of the largest superannuation funds in Australia. Aware Super is an industry superannuation fund, meaning it is run solely for the benefit of members rather than for shareholders. The fund serves members across a wide range of industries, with significant membership among public sector, healthcare, and education workers.
How can fund managers engage with Aware Super?
Aware Super has a large internal investment team that manages private market allocations. The fund commits to external GP funds and also makes direct and co-investments. GPs can approach the investment team in Sydney. Aware Super evaluates managers on track record, strategy differentiation, team quality, alignment of interests, and ESG integration. The fund's scale gives it significant negotiating power on fees and terms. Aware Super values co-investment rights and has the internal capability to evaluate and execute co-investments alongside GP partners.
