A new model for industry funds

Normal 0

false false false

MicrosoftInternetExplorer4

/* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}

The future of industry funds lies in member segmentation akin to the financial planning model and sustainable value propositions that no longer focus solely on growth and price, writes KRISTEN PAECH.

Read more

Over to you, John Brogden… Gilbert’s legacy for IFSA – a group united

Normal 0 false false false MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}

Richard Gilbert steps down at the end of August after 11 years at IFSA, the last six of which as chief executive. In that time, membership has doubled, the members’ total funds under management has risen two-and-a-half times and the association’s influence grown immeasurably. He speaks with GREG BRIGHT about the highlights and lowlights of his tenure. When Richard Gilbert joined the Investment and Financial Services Association (IFSA), as deputy chief executive, in 1997, the industry was divided. IFSA had resulted from the merger of three organisations representing managers and insurers – the Australian Investment Managers Association (AIMA), the Life, Investment and Superannuation Association (LISA) and the Investment Funds Association (IFA).


Read more

Over to you, John Brogden… Gilbert’s legacy for IFSA – a group united

Normal 0 false false false MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} Richard Gilbert steps down at the end of August after 11 years at IFSA, the last six of which as chief executive. In that time, membership has doubled, the members’ total funds under management has risen two-and-a-half times and the association’s influence grown immeasurably. He speaks with GREG BRIGHT about the highlights and lowlights of his tenure. When Richard Gilbert joined the Investment and Financial Services Association (IFSA), as deputy chief executive, in 1997, the industry was divided. IFSA had resulted from the merger of three organisations representing managers and insurers – the Australian Investment Managers Association (AIMA), the Life, Investment and Superannuation Association (LISA) and the Investment Funds Association (IFA).

Read more

Don Ezra’s three lessons for even better super

Normal 0 false false false MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}

In a book he has just co-authored on America’s burgeoning defined contribution retirement system, DON EZRA finds plenty of inspiration to be drawn from Australia’s example. However, the co-chair of global consulting at Russell Investments also finds three big areas for improvement. Australia has the most advanced defined contribution (DC) superannuation system in the world. No other country with developed capital markets has such a high ratio of DC assets to GDP.


Read more

Don Ezra’s three lessons for even better super

Normal 0 false false false MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} In a book he has just co-authored on America’s burgeoning defined contribution retirement system, DON EZRA finds plenty of inspiration to be drawn from Australia’s example. However, the co-chair of global consulting at Russell Investments also finds three big areas for improvement. Australia has the most advanced defined contribution (DC) superannuation system in the world. No other country with developed capital markets has such a high ratio of DC assets to GDP.

Read more

Why super raters struggle with the long term

Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}

“If you had a retail fund PDS in front of you, what would it tell you about longterm performance objectives?” asks Warren Chant, principal at super fund ratings agency Chant West. “You’d get some waffly words, but no figures.” In their PDSs, industry super funds usually provide long-term investment objectives, for example consumer price inflation plus 3.5 per cent. But retail funds don’t. For example, according to the AXA Generations PDS, the manager’s Defensive multi-manager option targets “some growth in the short-to-medium term with smaller fluctuations in value” than the Moderately Defensive or Alternative Balanced options.


Read more

Why super raters struggle with the long term

Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} “If you had a retail fund PDS in front of you, what would it tell you about longterm performance objectives?” asks Warren Chant, principal at super fund ratings agency Chant West. “You’d get some waffly words, but no figures.” In their PDSs, industry super funds usually provide long-term investment objectives, for example consumer price inflation plus 3.5 per cent. But retail funds don’t. For example, according to the AXA Generations PDS, the manager’s Defensive multi-manager option targets “some growth in the short-to-medium term with smaller fluctuations in value” than the Moderately Defensive or Alternative Balanced options.

Read more

Linked in: the perks and pitfalls of running ILBs

Inflation is coming, and with commodity prices and property valuations in decline, some investors are allocating to inflation-linked bonds, which are built to outperform once economic growth is hit and real yields fall. But ‘linkers’ carry illiquidity and volatility risks that can undermine their appeal. How should superannuation funds approach these assets? SIMON MUMME reports. … Read more

Linked in: the perks and pitfalls of running ILBs

Inflation is coming, and with commodity prices and property valuations in decline, some investors are allocating to inflation-linked bonds, which are built to outperform once economic growth is hit and real yields fall. But ‘linkers’ carry illiquidity and volatility risks that can undermine their appeal. How should superannuation funds approach these assets? SIMON MUMME reports.

Read more

Heavy hitters at the Paul Woolley conference

The Paul Woolley Centre for Capital Market Dysfunctionality will hold its third annual conference in Australia on October 28-30 at University of Technology Sydney. Running over three days this year rather than two, the conference features some interesting academics from Australia and overseas, as well as the former governor of the Reserve Bank, Ian Macfarlane, former Federal Reserve Bank of Atlanta vice president, Robert Eisenbeis, and former boss of the old BT Australia, Rob Ferguson.


Read more

Heavy hitters at the Paul Woolley conference

The Paul Woolley Centre for Capital Market Dysfunctionality will hold its third annual conference in Australia on October 28-30 at University of Technology Sydney. Running over three days this year rather than two, the conference features some interesting academics from Australia and overseas, as well as the former governor of the Reserve Bank, Ian Macfarlane, former Federal Reserve Bank of Atlanta vice president, Robert Eisenbeis, and former boss of the old BT Australia, Rob Ferguson.

Read more

Behind the fuzziness, there’s money in UN PRI

Normal 0 false false false MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}

At least one well-known funds management identity, when speaking privately about the UN PRI, will pronounce it so as to sarcastically emphasise the ‘PR’ part. He is saying what at least some of the industry is thinking. That becoming a signatory to the grandly named United Nations Principles for Responsible Investment looks great on a press release and is a nice thing to tell your members or investors, but is fuzzy when it comes to the actions required, and the outcomes that can be reasonably expected.


Read more