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IBM offers all channels as it puts its technology stamp on super administration

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IBM Australia is this month rolling out a new digital telephone system for its super fund administration clients, including the Watson Wyatt client funds which were transitioned from April last year. Watson Wyatt, which last year switched administration outsource part­ners from the former CitiStreet Austra­lia – subsequently bought by its former client Sunsuper – to IBM, has taken an active role in the new arrangement. It was IBM’s second big win of a group of corporate super fund clients, following a similar deal with Rus­sell Investments when it entered the Australian market two years earlier.

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Switching analysis finds members buying high and selling low

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Super fund members are jeopardising their retirement savings by switching into higher risk investment options at the height of the market and into lower risk investment options as markets are falling, analysis of member switching behaviour by Watson Wyatt has revealed.  Watson Wyatt analysed around 1750 switches by members  in four of its corporate super fund clients and found they were demonstrating typical  retail investor behaviour by buying high and selling low. The findings were based on data from funds in 2007 and 2008.  In 2007, as markets were rising, “overwhelmingly people were switching into more risk”, according to David McNeice, principal of Watson Wyatt. 


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Switching analysis finds members buying high and selling low

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  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;} Super fund members are jeopardising their retirement savings by switching into higher risk investment options at the height of the market and into lower risk investment options as markets are falling, analysis of member switching behaviour by Watson Wyatt has revealed.  Watson Wyatt analysed around 1750 switches by members  in four of its corporate super fund clients and found they were demonstrating typical  retail investor behaviour by buying high and selling low. The findings were based on data from funds in 2007 and 2008.  In 2007, as markets were rising, “overwhelmingly people were switching into more risk”, according to David McNeice, principal of Watson Wyatt. 

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Two years on, Deutsche’s back in Aussie bonds

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Deutsche Asset Manage­ment (DeAM) has re-emerged with an active Australian fixed income mandate, just two years after selling its local businesses in bonds and domestic equities to Aberdeen Asset Manage­ment. The $120 million mandate is the first for the three-man team poached from Invesco’s Melbourne office a year ago – Chris Siniakov, Andrew Canobi and Steve Sutcliffe – and reflects a renewed interest in the asset class as govern­ments and semi-governments bolster their debt issuance and increase opportunities for active management, according to DeAM’s Australian chief executive, Stephen O’Brien.


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Two years on, Deutsche’s back in Aussie bonds

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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;} Deutsche Asset Manage­ment (DeAM) has re-emerged with an active Australian fixed income mandate, just two years after selling its local businesses in bonds and domestic equities to Aberdeen Asset Manage­ment. The $120 million mandate is the first for the three-man team poached from Invesco’s Melbourne office a year ago – Chris Siniakov, Andrew Canobi and Steve Sutcliffe – and reflects a renewed interest in the asset class as govern­ments and semi-governments bolster their debt issuance and increase opportunities for active management, according to DeAM’s Australian chief executive, Stephen O’Brien.

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QIC meets KIC in hunt for cross-border opportunities

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QIC meets KIC in hunt for cross-border opportunities

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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;} South Korea’s sovereign wealth fund (SWF), the US$25 billion (A$31.3 billion) Korea Investment Corporation (KIC), has signed cooperation agreements with Queensland Investment Corporation (QIC) and Malaysia’s Khazanah Nasi­onal Berhad to share resources and pursue investments with the government-owned enti­ties.  Don Lee, head of alterna­tives at KIC, said the Korean government supported the fund’s aim to build direct relationships with peer SWFs in order to access further investment talent and invest­ment opportunities, including co-investments.

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Hedge fund fees and liquidity: together at last

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Following US$700 million (A$895 million) in redemption requests in the final quarter of 2008, US hedge fund Blue Mountain introduced a new fee structure and an optional bidding sys­tem for investors in an attempt to create a nexus between liquidity and hedge fund fees. In October last year, hedge fund-of-funds investing in the multi-strategy credit fund asked for hundreds of millions of invested capital back, an event which threatened the positions of remaining investors and forced Blue Mountain to carve out part of its port­folio and create a redeeming share class to pay the requests. “The liquidating share class bore its own costs for liquidity,” Jay Bryant, managing director of the hedge fund, said.


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Hedge fund fees and liquidity: together at last

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Following US$700 million (A$895 million) in redemption requests in the final quarter of 2008, US hedge fund Blue Mountain introduced a new fee structure and an optional bidding sys­tem for investors in an attempt to create a nexus between liquidity and hedge fund fees. In October last year, hedge fund-of-funds investing in the multi-strategy credit fund asked for hundreds of millions of invested capital back, an event which threatened the positions of remaining investors and forced Blue Mountain to carve out part of its port­folio and create a redeeming share class to pay the requests. “The liquidating share class bore its own costs for liquidity,” Jay Bryant, managing director of the hedge fund, said.

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Challenger hopes for annuity explosion from Henry review

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The ‘correcting’ and steepening of the yield curve over the last three months, combined with a new aware­ness from the Government and retirees of the market risk to which they have been exposed, will help make annuities “the product for the times”, hopes the chief executive of Challenger’s life busi­ness, Richard Howes. Last month, Challenger bolstered the rates on its annuities, such that a 15-year product with ‘nil residual capital value’ – that is, one where all the initial capital is progressively returned over the term – will pay 6.5 per cent annual interest, plus the return of the principal. Challenger’s annuities are backed by a mix of investment grade corporate debt, infrastructure bonds and property.  


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Challenger hopes for annuity explosion from Henry review

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The ‘correcting’ and steepening of the yield curve over the last three months, combined with a new aware­ness from the Government and retirees of the market risk to which they have been exposed, will help make annuities “the product for the times”, hopes the chief executive of Challenger’s life busi­ness, Richard Howes. Last month, Challenger bolstered the rates on its annuities, such that a 15-year product with ‘nil residual capital value’ – that is, one where all the initial capital is progressively returned over the term – will pay 6.5 per cent annual interest, plus the return of the principal. Challenger’s annuities are backed by a mix of investment grade corporate debt, infrastructure bonds and property.  

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Flawed member data brings TFN headache to Media Super

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Flawed member data created during the formation of Media Super saw some accounts of one of the preceding funds, JUST Super, hold duplicate records without tax file numbers (TFNs), causing some member contributions to be taxed at the full marginal rate in the 2007-08 financial year.  After the creation of Media Super in 2008 from the merger of JUST Su­per and Print Super, the trustee found that some member accounts held dupli­cate records – one with a TFN advised and another without – that resulted in some contributions being taxed an ad­ditional 31.5 per cent.


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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.

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