the Australian multinational bank and life under the New York-based investment company, it has decided to seek the support of the world’s largest asset manager to run investment strategies across its $15 billion default superannuation business. This week, BlackRock Inc. won a competitive tender to lead the management of Colonial’s two MySuper products, as well as to aid its ranking in the federal government’s annual performance test from 2022.
According to the chief executive of superannuation at Colonial, Kelly Power, the agreement with BlackRock, which was supported by CBA and CFS’s new majority owner, is focused on the outperform in the long run, instead of merely passing next year’s test. “I think this makes us a better business,” she told The Australian Financial Review. “We are adding more capability. This partnership, along with the recent fee reductions, are just more proof points of us being really serious about being a competitor in this industry.”
The new superannuation performance test, which will be conducted by the Australian Prudential Regulation Authority, is one of the…
