While institutions are keen
to own sustainable buildings, what is not widely appreciated is that the Green
Star credentials, awarded for the building structure, is only the first stage.
A building then needs to be managed and maintained with sustainability top of
mind, writes RALPH GAGLIANO, executive director of St Hilliers Group. In days gone by, the focus of many discussions
about property investment was location and yield and it would have seemed
outlandish to talk about the environmental footprint of a building and whether
it was energy efficient.
A green star building takes sustainable commitment
While institutions are keen to own sustainable buildings, what is not widely appreciated is that the Green Star credentials, awarded for the building structure, is only the first stage. A building then needs to be managed and maintained with sustainability top of mind, writes RALPH GAGLIANO, executive director of St Hilliers Group. In days gone by, the focus of many discussions about property investment was location and yield and it would have seemed outlandish to talk about the environmental footprint of a building and whether it was energy efficient.
Managing counterparty risk and transitions in a time of uncertainty
March seems to be the month where super funds are expected to resume hiring and firing their funds managers and other service providers in earnest. What are the warning signals that should lead to those decisions being made? And how to best proceed with any transition when market volatility is around record highs? Last month, Investment & Technology and J.P Morgan brought together a group of operations specialists from the superannuation and multimanager worlds, as well as consultants and an exchange-traded fund expert, to discuss the best advice they would give to their trustee colleagues. Participants in the roundtable were as follows:
Managing counterparty risk and transitions in a time of uncertainty
March seems to be the month where super funds are expected to resume hiring and firing their funds managers and other service providers in earnest. What are the warning signals that should lead to those decisions being made? And how to best proceed with any transition when market volatility is around record highs? Last month, Investment & Technology and J.P Morgan brought together a group of operations specialists from the superannuation and multimanager worlds, as well as consultants and an exchange-traded fund expert, to discuss the best advice they would give to their trustee colleagues. Participants in the roundtable were as follows:
Counterparty risk – who are you going to trust now?
In an era when counterparty risk has come to the fore of concerns for super funds, custodians may well represent the greatest potential danger, according to Brett Elvish. Elvish, principal of Financial ViewPoint, an independent consultancy specialising in backoffice advice, and a former managing director of Intech Investment Consulting, said the fact that most custodians were usually involved in cash management, foreign exchange and securities lending, alongside custody, meant that there were various risks to the fund.
Counterparty risk – who are you going to trust now?
In an era when counterparty risk has come to the fore of concerns for super funds, custodians may well represent the greatest potential danger, according to Brett Elvish. Elvish, principal of Financial ViewPoint, an independent consultancy specialising in backoffice advice, and a former managing director of Intech Investment Consulting, said the fact that most custodians were usually involved in cash management, foreign exchange and securities lending, alongside custody, meant that there were various risks to the fund.
Platform consolidation and churn rising, finds research
Administration and processing errors are the most common reason behind financial advisers switching platforms, with platform consolidation and churn on the rise. Research from Investment Trends reveals that one in five advisers would change platforms if the decision was entirely up to them. “Platform consolidation and churn are both up at the moment versus what we’ve seen in recent years,” Mark Johnston, principal at Investment Trends, told last month’s I&T/Australian Custodial Services Association Investment Administration conference. “Two years ago the market had solidified, only 12 per cent wanted to change platforms.
Platform consolidation and churn rising, finds research
Administration and processing errors are the most common reason behind financial advisers switching platforms, with platform consolidation and churn on the rise. Research from Investment Trends reveals that one in five advisers would change platforms if the decision was entirely up to them. “Platform consolidation and churn are both up at the moment versus what we’ve seen in recent years,” Mark Johnston, principal at Investment Trends, told last month’s I&T/Australian Custodial Services Association Investment Administration conference. “Two years ago the market had solidified, only 12 per cent wanted to change platforms.
Sharing of ‘commoditised’ tasks the key to managed fund STP
The flood of 16,000 faxes per day that continue to flow between wraps, custodians and funds mangers will only abate when industry leaders decide what tasks in managed fund transactions have become commoditised, and agree to centralise them. This is similar to what Australia’s banks decided years ago on cheque clearing, according to Ausmaq chief executive Rob Brown, who chaired a session at the conference appropriately titled ‘Taking a Leaf out of the Banks’ Books – Towards an Homogenous System for Funds Management Transactions’.
Sharing of ‘commoditised’ tasks the key to managed fund STP
The flood of 16,000 faxes per day that continue to flow between wraps, custodians and funds mangers will only abate when industry leaders decide what tasks in managed fund transactions have become commoditised, and agree to centralise them. This is similar to what
Australia’s banks decided years ago on cheque clearing, according to Ausmaq chief executive Rob Brown, who chaired a session at the conference appropriately titled ‘Taking a Leaf out of the Banks’ Books – Towards an Homogenous System for Funds Management Transactions’.
Securities lending and shorting: funds given qualified approval
Super funds should approach securities lending as an investment decision and manage the risks accordingly, the 2009 I&T/Australian Custodial Services Association Investment Administration conference was told. Lending and borrowing of stock were mutually co-existent, according to specialist consultant Drew Vaughan, of Dymond, Foulds & Vaughan. “Often, the institutional investor is on both sides of the equation, maybe even borrowing some of the same securities they are lending.
Securities lending and shorting: funds given qualified approval
Super funds should approach securities lending as an investment decision and manage the risks accordingly, the 2009 I&T/Australian Custodial Services Association Investment Administration conference was told. Lending and borrowing of stock were mutually co-existent, according to specialist consultant Drew Vaughan, of Dymond, Foulds & Vaughan. “Often, the institutional investor is on both sides of the equation, maybe even borrowing some of the same securities they are lending.
