More consolidation among funds managers is predicted, as this year’s rebound is still likely to leave them with fewer assets to manage than in 2007, according to a report published yesterday by Watson Wyatt.
BlackRock/BGI sort out top management
Barclays Global Investors and BlackRock Investment Management have finalised their post-merger executive structure in Australia, with long-standing BlackRock chief executive Maurice O’Shannassy deciding to call it a day.
NGS Super overhauls group insurance…
The $2.7 billion NGS Super has negotiated a new deal with its insurer that will give members the option of income protection to age 65, death cover extended to age 70 and automatic insurance increases for trigger events.
… as fund gets financial health check
In a first for the superannuation industry, Mercer has produced a financial condition report – required by legislation in the insurance industry – for NGS Super assessing the operational risks within the fund, and now plans to roll out the service to other large superannuation funds.
Ascalon fields wave of proposals after Westpac buy-up
Westpac’s acquisition of boutique incubator Ascalon Capital Managers triggered many business pitches from funds managers worldwide aiming to access the Australian market, and saw two key BT and Westpac executives join the company’s board.
GESB goes live with over-the-phone advice
The $8 billion GESB yesterday launched a simple financial advice service covering superannuation investment options and contribution methods for all members.
Unbalanced
The name: a boutique’s most important differentiator The boutique formed by Steve Giubin and the displaced Credit Suisse Aussie equity team might not have a bean under management, but it’s already scored its first coup. Giubin and his five teammates have been allowed to call themselves Sigma Funds Management, meaning they’ve happened upon what must be the only Greek letter not already taken by dozens of investment firms worldwide. “There’s an offshore group called Sigma Asset Management, and ASIC had a record of a Sigma Seven Capital but I don’t think they are doing anything,” Giubin explains. “The six of us decided on Sigma because in upper case it means ‘the sum of all the parts’, and nearly the entire [CSAM] Aussie equity team is together in this business. But it’s one of those names you arrive at, and then it takes on new meanings. In the Greek lower case, it means standard deviation, which fits with the disciplined way we manage money, and Six Sigma is a famous customer service quality process at GE.” As Sigma starts knocking on the asset consultants’ doors, let’s hope a namesake doesn’t come out of the woodwork. It’s happened before to Aussie equity managers. Highbridge Capital was hastily rechristened Northcape Capital in 2007, after the lawyers from a New York-based alternatives manager came a-calling. Waterstone Capital became Wavestone Capital for a similar reason, while some might recall how Brian Eley and Ben Griffiths’ efforts to call their small cap start-up EGG were stymied by a certain UK online bank. Being a little obscure would probably help in such situations, and Ralph Leib has got the right idea. The former GESB investment strategist has dubbed his global long/short fund 613 Capital, which thankfully is not a forecast for the Dow Jones. “The 613 Mitzvot, Hebrew for ‘613 commandments’, are statements and principles of law and ethics contained in the Torah or Five Books of Moses, to live your life with honesty and integrity,” Leib explains. High on the spiritual, low on the actionable, well done Ralph.
Unbalanced
The name: a boutique’s most important differentiator The boutique formed by Steve Giubin and the displaced Credit Suisse Aussie equity team might not have a bean under management, but it’s already scored its first coup. Giubin and his five teammates have been allowed to call themselves Sigma Funds Management, meaning they’ve happened upon what must be the only Greek letter not already taken by dozens of investment firms worldwide. “There’s an offshore group called Sigma Asset Management, and ASIC had a record of a Sigma Seven Capital but I don’t think they are doing anything,” Giubin explains. “The six of us decided on Sigma because in upper case it means ‘the sum of all the parts’, and nearly the entire [CSAM] Aussie equity team is together in this business. But it’s one of those names you arrive at, and then it takes on new meanings. In the Greek lower case, it means standard deviation, which fits with the disciplined way we manage money, and Six Sigma is a famous customer service quality process at GE.” As Sigma starts knocking on the asset consultants’ doors, let’s hope a namesake doesn’t come out of the woodwork. It’s happened before to Aussie equity managers. Highbridge Capital was hastily rechristened Northcape Capital in 2007, after the lawyers from a New York-based alternatives manager came a-calling. Waterstone Capital became Wavestone Capital for a similar reason, while some might recall how Brian Eley and Ben Griffiths’ efforts to call their small cap start-up EGG were stymied by a certain UK online bank. Being a little obscure would probably help in such situations, and Ralph Leib has got the right idea. The former GESB investment strategist has dubbed his global long/short fund 613 Capital, which thankfully is not a forecast for the Dow Jones. “The 613 Mitzvot, Hebrew for ‘613 commandments’, are statements and principles of law and ethics contained in the Torah or Five Books of Moses, to live your life with honesty and integrity,” Leib explains. High on the spiritual, low on the actionable, well done Ralph.
They still call the default fund home
A comprehensive new survey on member investment choice switching shows that few with access to MIC were panicked by the global financial crisis. What does it take for super fund members to switch? Prior to the global financial crisis many theorised that soaring investment returns were a key reason for member complacency. Despite fears at the time, the introduction of member investment choice back in 2005 had not led to wholesale member switching – neither between, nor within, super funds. Most member were happy to call their default fund ‘home’ and – with record doubledigit returns for many – home seemed like the best place to be. Then along came the biggest financial disaster since the Great Depression. Returns went backwards, banner newspaper headlines revealed one corporate collapse after another and, by October 2008, things were nasty on a daily basis.
They still call the default fund home
A comprehensive new survey on member investment choice switching shows that few with access to MIC were panicked by the global financial crisis. What does it take for super fund members to switch? Prior to the global financial crisis many theorised that soaring investment returns were a key reason for member complacency. Despite fears at the time, the introduction of member investment choice back in 2005 had not led to wholesale member switching – neither between, nor within, super funds. Most member were happy to call their default fund ‘home’ and – with record doubledigit returns for many – home seemed like the best place to be. Then along came the biggest financial disaster since the Great Depression. Returns went backwards, banner newspaper headlines revealed one corporate collapse after another and, by October 2008, things were nasty on a daily basis.
From family office to your back office
The owners of an online funds management system spun out of the Haines family’s Portland House Group in 2004 are actively marketing for the first time, with “fundamental style” managers and family offices of up to $500 million and 30-odd trades a day the target market. Funds Management Online (FMO) is an integrated fund accounting and front-office portfolio management system, which according to chief executive officer Martin Koopman is a moderately priced solution for investment firms still using spreadsheets.
