Michael Wyrsch has been tasked with reducing Vision Super’s investment costs as part of his new role as chief investment officer of the $7 billion fund.
Wyrsch, who will start at the Victorian local government fund on June 2, is currently a senior investment consultant at Frontier Advisors, a role he has held for 16 years.
The appointment of the first ever CIO for Vision Super is one of the first major changes brought about by new chief executive Stephen Rowe, since his appointment in January.
Rowe said cost control was a key focus at every fund he had run and that he was not convinced that quality always had to come at a great price.
“There are some really good managers out there that do not charge the earth and there are some out there who do not perform so well, but charge a fortune. It is about being conscious of the risk adjusted return you are getting, the quality of the managers you are buying, their processes and their track record.”
He said the role of CIO would help focus the fund on the fees it was paying to its custodian (National Australia Bank), its investment consultant (Frontier Advisors) and its fund managers.
Rowe added that extra cost of hiring Wrysch would provide a return on investment from such savings and from the greater focus on strategy and risk control.
He cited Wyrsch’s experience in researching and advising on medium term asset allocation as being able to help in tilting the fund’s strategy.
Wyrsch, who was not Vision Super’s main consultant at Frontier, will bring numbers in the Vision Super investment team up to five, with Graeme Smith, the current manager of investments retaining his role.