Industry super fund Australian Catholic Super (ACSRF) has launched a custom equities strategy to customers in its RetireSmart option, in a mandate with Parametric Portfolio Associates.
The strategy would focus on capital retention and income and was described as a “new approach to equity investing in retirement” by offering downside in falling markets and meeting specific yield targets above market benchmarks.
It would also generate consistent income while ensuring capital balances were protected from market drawdowns.
Parametric, which is part of Eaton Vance, would manage the equity portfolio as part of ACSRF’s RetireSmart pension solution which was launched in 2015.
Greg Cantor, chief executive of ACSRF, said: “We didn’t want to wait for the Government to impose its ‘CIPR’ retirement product timeline on us or the rest of the industry to really move on this. We have nearly one-third of our members in retirement, and many more making plans to retire in the very near future.
“This particular cohort of members have needs that, we felt, required a customised solution. We have established a reputation for innovation across the fund and we are building on this further by rethinking the investment challenge for retired members.”