AUSfund, launched 33 years ago as a holding fund for dormant accounts transferred from other Australian super funds, will close in May following government moves to take responsibility for those assets.
A combined A$210 million ($160.1 million) of AUSfund accounts with balances of A$6,000 or more will be transferred to Melbourne-based Hostplus effective May 21, Cath Bowtell, AUSfund's chief executive officer, said in an email.
Meanwhile, a combined A$730 million of accounts with smaller balances will be transferred to the Australian Taxation Office, she said.
AUSfund invited 25 super funds to participate in a procurement process, selecting Hostplus, Ms. Bowtell said.
The shift to Hostplus from AUSfund will effectively find those account balances taking on a more equity and alternatives-heavy asset allocation, according to details provided on AUSfund's website.
Global equities are targeted at 50% of Hostplus's portfolio but only 30% of AUSfund's portfolio. Alternatives account for 38% of Hostplus's portfolio and 6% of AUSfund's. Allocations to fixed income and cash, meanwhile, will plunge to 12% from 64%.
Hostplus managed A$47.8 billion in retirement assets as of the June 30 close of its latest fiscal year.
