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Don’t rely on markets to sort conflicts of interest

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The financial services industry can not always be trusted to negate its inherent    conflicts of interest, argues the University of Sydney’s MIKE RAFFERTY. In research recently completed for the AIST, Rafferty’s Workplace Research Centre found super members are best served by having their own direct representatives at    the decision-making table. Since the 1950s, the US dollar has carried the following official motto: In God We Trust. It may seem strange that god is invoked to give credibility to the world’s most used currency in a country that has a constitution that separates church and state.

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Time for tailored solutions to group risk

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Elsewhere in this issue, a roundtable of group insurance industry stakeholders came up with a number of ways to enhance Australians’ insurance coverage through group risk products. Reducing hassle and turn-around times for both making an application and receiving payment on a claim were two key suggestions, with delays at the doctors’ end of things pinpointed as an oft-overlooked area for improvement. The creation of more tailored and relevant products was also touted, as was a major education campaign to go with them. The Investment & Financial Services Association (IFSA) is already well advanced on this, writes the Association’s EMMA GRAINGE.


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Time for tailored solutions to group risk

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Normal 0 false false false MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) }   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;} Elsewhere in this issue, a roundtable of group insurance industry stakeholders came up with a number of ways to enhance Australians’ insurance coverage through group risk products. Reducing hassle and turn-around times for both making an application and receiving payment on a claim were two key suggestions, with delays at the doctors’ end of things pinpointed as an oft-overlooked area for improvement. The creation of more tailored and relevant products was also touted, as was a major education campaign to go with them. The Investment & Financial Services Association (IFSA) is already well advanced on this, writes the Association’s EMMA GRAINGE.

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Pages: 1 2 3

Risk managers still peripheral, even in the downturn

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Despite the financial meltdown, risk managers are still not getting the resources and access to boards enjoyed by revenue makers, according to StrategyLab, a private research unit funded by SimCorp. The global research found that cost pressures within financial institutions prevented further resourcing for risk managers, and that boards were far removed from the concerns of their risk management teams. Developed by StrategyLab, the survey of 90 financial industry professionals around the world was executed by AC Nielsen.


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Risk managers still peripheral, even in the downturn

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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;} Despite the financial meltdown, risk managers are still not getting the resources and access to boards enjoyed by revenue makers, according to StrategyLab, a private research unit funded by SimCorp. The global research found that cost pressures within financial institutions prevented further resourcing for risk managers, and that boards were far removed from the concerns of their risk management teams. Developed by StrategyLab, the survey of 90 financial industry professionals around the world was executed by AC Nielsen.

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A Mercer survey on more than performance

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As if any more proof were needed that “risk” has replaced “return” at the forefront of investor minds, Mercer Sentinel has globally expanded its funds manager operational risk reviews that started in Australia two years ago. Visiting Australia New York will be quite different to London, for example,” Scapino says. “Additionally, you will find different standards by asset class or investment type. For example, operations and controls supporting OTC derivatives are still very manual. We question managers’ internal controls and challenge them saying ‘we understand your operations are somewhat defined by your counterparties and market standards, but what are you doing to bring yourself up towards a safe and sound standard?’”


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A Mercer survey on more than performance

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Pages: 1 2

Group insurance technology: where it is and where it needs to be

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The economic downturn might have spurred a recent surge in new policies, but underinsurance remains a chronic problem in Australia. It isn’t helped by the clunky application process still provided by many group insurance vendors. Too many super fund members are getting part of the way into purchasing cover before being deterred by lengthy forms … Read more

Group insurance technology: where it is and where it needs to be

by

The economic downturn might have spurred a recent surge in new policies, but underinsurance remains a chronic problem in Australia. It isn’t helped by the clunky application process still provided by many group insurance vendors. Too many super fund members are getting part of the way into purchasing cover before being deterred by lengthy forms … Read more

Insourcing valuation spurs local hedge fund’s strong start

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Institutional investors have become sceptical of hedge funds, particularly since so many have proved to be no more than expensive purveyors of beta. SIMON MUMME profiles one domestic marketneutral manager, TechInvest, which argues it has lived up to the sales pitch.


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Insourcing valuation spurs local hedge fund’s strong start

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Institutional investors have become sceptical of hedge funds, particularly since so many have proved to be no more than expensive purveyors of beta. SIMON MUMME profiles one domestic marketneutral manager, TechInvest, which argues it has lived up to the sales pitch.

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Pages: 1 2 3

Out of the box: the future of quantitative funds management

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In 1978, so the story goes, the world’s first investment product reflecting a quantitative model was launched in the US by the former Wells Fargo investment division. It was a simple strategy which tilted the portfolio towards stocks that paid higher dividends. Since then quantitative investment strategies have come a long way, with both the number of quantitative managers and other institutions mushrooming along with the number and variety of strategies employed. In fact, recent criticism of the likely future effectiveness of quantitative strategies tends to centre on their popularity. Some commentators believe that the weight of money making similar bets when the world first felt the tremor of financial crisis in August 2007 contributed to the underperformance of quantitative managers. Recovered ground by those managers since has dampened the debate and the search for new and better strategies has intensified, as has the development of better risk management techniques. This is an edited transcript from a roundtable in Melbourne, sponsored by BNY Mellon Asset Management and its affiliate Ankura Capital, which looked at quantitative investments from the point of view of institutional investors and their advisers.


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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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