Australian Retirement Trust (ART), is establishing a dedicated equities capital markets desk as it looks to expand its direct investment capabilities in the domestic sharemarket, according to a report by the AFR. 

The A$370 billion pension fund has recruited a team of three experienced market professionals to lead the initiative, headed by former Jarden investment banking chief Dane Fitzgibbon.

The new unit is expected to adopt a hedge fund-style investment approach, enabling ART to pursue opportunities in Australian equities more directly and access capital markets transactions at a lower cost.

The move represents a strategic development in the fund's approach to domestic equities, potentially reducing its reliance on predominantly passive, index-tracking strategies while creating greater flexibility to participate in individual investment opportunities.

Australian equities currently account for approximately 25 per cent of ART's overall investment portfolio, highlighting the significance of the domestic market within its broader investment strategy.

The establishment of the desk also reflects a wider trend among Australia's largest superannuation funds towards developing sophisticated internal investment capabilities and taking greater control over portfolio implementation.

For institutional investors, the development underscores the growing importance of in-house trading expertise, direct market access and execution efficiency as large asset owners seek to optimise investment costs and capture opportunities across public markets.