Discussions at the most recent Fiduciary Investors Symposium made it clear that super funds have different opinions on how much exposure to active management they want in portfolios. However, what they agreed on more was a belief that active managers still play an important role in the market – that active management is not dead, and asset allocators don’t want it to be.
The gap between the median administration fee for retail and profit-to-member funds has closed over the last 15 years, research from Super Ratings has found. The researcher noted it’s now “fiendishly difficult” for funds to differentiate themselves based on fees.
ASFA CEO Mary Delahunty has distanced herself from comments made by Super Members Council CEO Misha Schubert
this week insinuating that financial advisers are “dodgy”. The two peak bodies, which have increasingly large membership overlap, are also at odds over the contentious issue of advice fee deductions from super funds.
The power of artificial intelligence to make sense of huge volumes of data and produce real business gains has obvious appeal for asset owners. Working out how to apply the technology can be overwhelming, but the Fiduciary Investors Symposium heard that the most important thing is to start.
AustralianSuper has been trimming its bond portfolio as a portion of total assets on the expectation that global interest rates have peaked. Head of fixed income, currency and cash Katie Dean says she draws on her background as an economist to meet the challenges of managing a $50 billion portfolio for the nation’s largest super fund.
Somewhat similar to Australia’s increasingly concentrated superannuation space, the $6 trillion Canadian pension market is dominated by the so-called Maple 8 public pension funds, whose model has long provided stellar learning materials for the world. But OMERS chief executive Blake Hutcheson, overseeing a Maple fund, questioned whether bundling them all together is appropriate.
Super funds have recouped some of the April losses in May and pushed the financial year to date (FYTD) return for balanced funds to 8.1 per cent, according to research house SuperRatings.
State Street has become the custodian and administrator of the $30 billion Brighter Super.
While it might not be enough to win government for the Coalition, the controversial policy allowing first home buyers to draw on super is emerging as a populist success that could reshape the ‘super wars’ forever. The industry needs to win hearts and minds on the concept of preservation or be willing to accept a more flexible retirement system.
The Fiduciary Investors Symposium in Toronto heard from four leaders who were instrumental in making the so-called “Canadian model” of institutional asset ownership what it is today. More than 40 years later, they are concerned the sound principles of the nation’s lauded pension system are under attack and need to be defended.
The Guardians of Kiwi sovereign fund NZ Super has appointed Alex Bacchus as acting chief investment officer amid Stephen Gilmore’s departure to CalPERS.
Scott Hartley, chief executive of Insignia Financial, the nation’s largest retail fund provider, has called for amendments to the fee deduction rules proposed by the government in its bill acting on the Quality of Advice Review. The government quietly made changes to the explanatory memorandum last week, but critics maintain the bill, as drafted, places additional supervision obligations on superannuation trustees and adds costs for members.
The investment intelligence behind Australia’s largest asset owners and their teams
In-depth interviews with leaders, experts and visionaries in the institutional investment community
Updates on the latest industry policy developments and regulation
The challenges and innovations of custody, technology and operational due diligence
Investment Magazine provides in-depth, monthly analysis of trends and developments for all the businesses in which superannuation funds engage‚ including asset allocation, investment manager selection, custody and fund accounting, member administration, group insurance and compliance.
We acknowledge the Traditional Custodians of this land upon which Conexus Financial sits, the Cadigal of the Eora Nation. We recognise their continuing connection and unique cultural and spiritual relationships to the land, waters and community. We pay our deepest respects to them and their culture, and to Elders both past and present.
