Hedge Funds

Better beta from
less passive indexes

Tim Gardener was disgruntled. “I worry about the corporate bond space. If you invest according to market capitalisation in the corporate bond space, you invest the maximum amount of your allocated money in the most indebted companies, all else being equal,” Gardener said in an interview at AXA Investment Managers’ London office on May 25. “Lending more […]

Super fund fusion

Mergers can benefit superannuation funds: favourable mandate structures, terms and fees can be secured; co-investments or direct investments in unlisted assets can be made; more money to allocate becomes available in a capital-constrained world; and capital-gains-tax credits can be used to offset future profits from domestic stocks. What can go wrong? Funds don’t agree on […]
Hedge Funds

Inside the Qantas
investment engine

Basis points matter, according to Andrew Spence, chief investment officer of the $6-billion Qantas Superannuation Plan, because the volumes of money in superannuation are “enormous.” He is not talking about incremental investment gains on billions of dollars of invested capital. He’s speaking about saving money. Specifically, the $1.42 million that the fund saved in the […]
Policy and Regulation

AIST: tax relief to spur
more mergers

Incoming laws preventing tax losses in superannuation mergers will spur more funds to unite as they face greater compliance workloads, according to an industry peak body. The draft legislation, aiming to allow merging super funds to offset investment losses against future capital gains tax (CGT), will trigger the latent plans of many funds to join […]
Hedge Funds

Equipsuper to manage
futures in-house

Staff at the $4.6-billion Equipsuper could start making tactical investment bets through futures contracts by the end of the year. Equipsuper’s seven-person investment team aims to begin making investments in all asset classes by using futures based on major stock and bond market indexes by December. The contracts would enable the fund to place trades […]
Hedge Funds

Qantas Super tracks market threats with RiskMetrics

Qantas Superannuation Plan has begun using a RiskMetrics system to gauge how its $6 billion in assets can withstand various investment risks. The fund, which manages the retirement savings of more than 33,000 Qantas Group employees, started using the RiskMetrics product, called RiskManager, in late June to better track how changes in investment markets affect […]
Hedge Funds

One trustee, multiple funds

Managing conflicts of interest, setting rules for investment executives and thinking about what people want are part of Dick Morath’s fiduciary duty. Morath, a former chief executive of MLC’s retail and corporate fund businesses, influences how billions of dollars of Australians’ money is invested. He is a trustee of MLC Nominees, the board governing two […]
People Moves

Equipsuper advice push starts with ex-AIA man

Equipsuper wants to strengthen its financial planning unit under a newly appointed boss, Justin Sadler, a former AIA Financial Services executive. Sadler, who started work at the $4.6-billion industry fund on July 9, will oversee the advice delivered by its financial planners and the expansion of the team beyond five people. He led about 80 […]