Bold as brass, Wall Street firms are again talking big bonuses. However, a proposal that Australian super funds are being urged to sign would give shareholders of US public companies more of a say in the matter, FIONA REYNOLDS writes.
Aussie Super in reverse? CalSTRS mulls big active bump
The California State Teachers’ Retirement System (CalSTRS) will publish its business plans in the next week or so, and with a back-to-basics theme, the investment team has been directed to review its mix of active versus passive. Chief investment of CalSTRS, Chris Ailman, says the board typically asks the investment team to review three broad themes in addition to its normal portfolio level and work. “The board wants us to look at the mix of active passive in both equities and fixed interest investments. We have traditionally been heavily passive and that has helped us. Active management has been very expensive, at times it has proved its worth, at other times it hasn’t,” he says.
Aussie Super in reverse? CalSTRS mulls big active bump
The California State Teachers’ Retirement System (CalSTRS) will publish its business plans in the next week or so, and with a back-to-basics theme, the investment team has been directed to review its mix of active versus passive. Chief investment of CalSTRS, Chris Ailman, says the board typically asks the investment team to review three broad themes in addition to its normal portfolio level and work. “The board wants us to look at the mix of active passive in both equities and fixed interest investments. We have traditionally been heavily passive and that has helped us. Active management has been very expensive, at times it has proved its worth, at other times it hasn’t,” he says.
Superpartners loses project head in midst of biggest project
Superpartners’ head of project delivery left last month – in the middle of running the largest superannuation system replacement project in Australian history. A Superpartners spokesperson said that Jane Collyer, an eight-year veteran of the firm who ran the massive project to integrate administration for the AustralianSuper merger, had left for personal reasons. Collyer confirmed she had quit to look after her ailing father, but that she had left Superpartners “on great terms” and remained available to take any questions over the phone.
Superpartners loses project head in midst of biggest project
Superpartners’ head of project delivery left last month – in the middle of running the largest superannuation system replacement project in Australian history. A Superpartners spokesperson said that Jane Collyer, an eight-year veteran of the firm who ran the massive project to integrate administration for the AustralianSuper merger, had left for personal reasons. Collyer confirmed she had quit to look after her ailing father, but that she had left Superpartners “on great terms” and remained available to take any questions over the phone.
Discrete service aids hedge transparency and control
Earlier this year, Man Investments, the world’s largest hedge funds of funds manager, based in Switzerland, announced that it was migrating to a separately managed account platform (SMAP) for clients in order to give them more transparency and control. Others are expected to follow. Providing an SMAP for a client, even a big one, is not an easy thing for a hedge fund management firm to do. Most hedge fund managers are boutique operators, with outsourced administration. It is difficult enough for a boutique to provide separately managed accounts in the long-only space.
Discrete service aids hedge transparency and control
Earlier this year, Man Investments, the world’s largest hedge funds of funds manager, based in Switzerland, announced that it was migrating to a separately managed account platform (SMAP) for clients in order to give them more transparency and control. Others are expected to follow. Providing an SMAP for a client, even a big one, is not an easy thing for a hedge fund management firm to do. Most hedge fund managers are boutique operators, with outsourced administration. It is difficult enough for a boutique to provide separately managed accounts in the long-only space.
Going beyond DB vs DC for the ultimate pension
The turbulence in markets has been a catalyst for some navel gazing in the global pension market, which has the two-fold effect of re-examining pension design and the institutional elements that need to be in place to deliver cost efficiency, according to Keith Ambachtsheer, director of the Rotman International Centre for Pension Management (ICPM). “I hope that what comes out of this cycle of market turbulence is that the defined contribution versus defined benefit debate diminishes into a discussion of what the best system should look like,” he says.
Going beyond DB vs DC for the ultimate pension
The turbulence in markets has been a catalyst for some navel gazing in the global pension market, which has the two-fold effect of re-examining pension design and the institutional elements that need to be in place to deliver cost efficiency, according to Keith Ambachtsheer, director of the Rotman International Centre for Pension Management (ICPM). “I hope that what comes out of this cycle of market turbulence is that the defined contribution versus defined benefit debate diminishes into a discussion of what the best system should look like,” he says.
ACSA to turn unit registry utility talk into action
The creation of an industry utility for unit registry in Australia has been the subject of informal discussion among competitors in the fund administration business, which Bryan Gray hopes can soon be formalised through the Australian Custodial Services Association (ACSA) that he chairs. All of Australia’s major custodians run a unit registry service, but Gray suspects that no-one is providing the core registry function – record-keeping and the processing of fund applications and redemptions – because they consider it a point of a difference or a money-maker in its own right.
ACSA to turn unit registry utility talk into action
The creation of an industry utility for unit registry in Australia has been the subject of informal discussion among competitors in the fund administration business, which Bryan Gray hopes can soon be formalised through the Australian Custodial Services Association (ACSA) that he chairs. All of Australia’s major custodians run a unit registry service, but Gray suspects that no-one is providing the core registry function – record-keeping and the processing of fund applications and redemptions – because they consider it a point of a difference or a money-maker in its own right.
Alpha under threat if organisational risk ignored
Risk assessment is a big part of any investment process and the risk/return tradeoff is one of the most talked about ratios in the investment industry. But while investment risk is well documented, organisational risk has been largely ignored in the pension industry as funds have grown in size and developed in bureaucratic complexity. According to chief executive of ReGroup, Ann Oglanian, the pension industry has been particularly good at investment risk assessment but neglected wider risk management.
