Two small caps managers have had to hand back $500 million to Vision Super, as the fund swaps them out for a new manager.

Kinetic Investment Partners managed about $230 million for the fund in Australian small caps while Perpetual Investment Management managed about $170 million in small caps, as at June 2018.

Vision Super terminated both the allocations in June this year.

As the replacement, the fund appointed RealIndex Investments to manage about $180 million in small caps.

The fund has $10.2 billion in funds under management.

Of this about $1.9 billion is in Australian shares, $2.5 billion in international shares, $1.2 billion in bonds, $800 million in property and about $2.5 billion in alternative investments, including private equity, infrastructure and absolute return strategies.

Currently only cash is managed internally.