in the one field that refuses to rationalise
Interest rates are not the only thing going up in Australia in defiance of the rest of the world. While the transition management marketplaces of London and New York have seen a number of investment banks exit, or at least ‘transition transition’ into their custody or asset management affiliates, in Australia the broker-dealers are standing strong, and in 2009 have even been joined by new competitors claiming ‘purer’ models.
Yet this abundance creates a problem for the chief investment officer wanting to move from Manager A to B. At least a dozen competitors are marketing seriously in Australia, and putting as many different spins on their service while doing so. These spins range from broker-dealer to pure agency multi-broker, asset manager, liquidity arranger, or project manager/consultant.
There hasn’t been a good political stoush in the superannuation industry for some time. The main game in recent years has been adequacy, with debate involving not whether we should be saving more but, rather, how we go about it. Enter Jeremy Cooper, drawing the ire of new IFSA chief executive, John Brogden, for perhaps jumping to conclusions before he has completed his inquiry into the industry – not due until the middle of next year.
Well, I’ve done it. In researching this month’s cover story, I’ve spoken to every single transition manager currently offering their services in Australia. I’d like to be able to report, with apologies to Jeremy Cooper, that the super fund dog is wagging the transition management tail, but I’m afraid I can’t because after interviewing a dozen of these people, I’m so confused I don’t know if I’m looking at a canine or a cantaloupe.
