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Funds urged to consider cost of not rebalancing

by

The cost of a standard Australian
equity trade has risen by more than 10 basis points during the financial crisis,
prompting super funds to think carefully about the way in which they rebalance portfolios.
According to

State Street’s
Transaction Cost Analysis, the average equity transaction cost in

Australia
rose from 25 basis points in 2007 to 38 basis points in 2008. However the cost
for a fund of not rebalancing could be even higher, according to Thomas
Chevrier, head of research at State Street Associates, Asia-Pacific.

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Funds urged to consider cost of not rebalancing

by
The cost of a standard Australian equity trade has risen by more than 10 basis points during the financial crisis, prompting super funds to think carefully about the way in which they rebalance portfolios. According to State Street’s Transaction Cost Analysis, the average equity transaction cost in Australia rose from 25 basis points in 2007 to 38 basis points in 2008. However the cost for a fund of not rebalancing could be even higher, according to Thomas Chevrier, head of research at State Street Associates, Asia-Pacific.

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Pages: 1 2

Move away from flat super fees, urges Mercer

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Industry funds should consider charging more for administration and doing so on a percentage-of-assets basis, to help retain nervous members and to survive any future automatic account consolidation regime, according to Mercer executives Russell Mason and David Anderson. Mason is Mercer’s national business leader for multi-employer superannuation, and Anderson the business leader for outsourcing. There are approximately three superannuation accounts for every Australian worker, so funds which rely on a fixed fee per account face a “one-third to two-thirds” reduction in their operating revenue if an automatic account consolidation regime is introduced, according to Anderson.


Read more

Move away from flat super fees, urges Mercer

by
Industry funds should consider charging more for administration and doing so on a percentage-of-assets basis, to help retain nervous members and to survive any future automatic account consolidation regime, according to Mercer executives Russell Mason and David Anderson. Mason is Mercer’s national business leader for multi-employer superannuation, and Anderson the business leader for outsourcing. There are approximately three superannuation accounts for every Australian worker, so funds which rely on a fixed fee per account face a “one-third to two-thirds” reduction in their operating revenue if an automatic account consolidation regime is introduced, according to Anderson.

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Pages: 1 2

‘Private debt’ a timely new investment for recession

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At a time when investors have become cautious about immediate prospects for private equity, but are bullish on corporate debt, a new asset sub-class seems to be emerging – private debt. Specialists in the field say that assessing companies for debt instruments requires a different set of skills to that of private equity investments. Causeway Asset Management, a private debt manager formed in 2003, is offering a new strategy for Australian institutional investors, which will focus on the SME corporate debt market. Until 2007, Causeway focused on running proprietary portfolios for its joint-venture partners, including a Canadian consortium bank.


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‘Private debt’ a timely new investment for recession

by
At a time when investors have become cautious about immediate prospects for private equity, but are bullish on corporate debt, a new asset sub-class seems to be emerging – private debt. Specialists in the field say that assessing companies for debt instruments requires a different set of skills to that of private equity investments. Causeway Asset Management, a private debt manager formed in 2003, is offering a new strategy for Australian institutional investors, which will focus on the SME corporate debt market. Until 2007, Causeway focused on running proprietary portfolios for its joint-venture partners, including a Canadian consortium bank.

Read more

Pages: 1 2

TAA pioneer Peter Higgs branches into global equities

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Tactical Global Management  (TGM), the specialist Australianowned  asset allocation manager, has diversified  its business through the launch  of a market-neutral global equity fund.  The TGM Tactical Global Equity  Fund will be run from the firm’s  London office by a new team including  Hicham Najem, Priya Parameswaran  and Adrian Luck, reporting to the  firm’s founder, Peter Higgs, who is also  based in London.


Read more

TAA pioneer Peter Higgs branches into global equities

by
Tactical Global Management  (TGM), the specialist Australianowned  asset allocation manager, has diversified  its business through the launch  of a market-neutral global equity fund.  The TGM Tactical Global Equity  Fund will be run from the firm’s  London office by a new team including  Hicham Najem, Priya Parameswaran  and Adrian Luck, reporting to the  firm’s founder, Peter Higgs, who is also  based in London.

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Scale helps Sunsuper cut fees, keep big pension accounts

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A combination of scale and forecast cost savings of running member administration and financial planning inhouse enabled the $12 billion Sunsuper to make a recent fee cut across pension accounts. The move echoes BUSS(Q)’s move two years ago to abolish all fees for allocated pensioners, although that has failed to attract as many of the high account balances as was hoped. In March, Sunsuper announced a 0.1 per cent reduction in fees, to 0.25 per cent, for the first $300,000 of pension accounts.


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Scale helps Sunsuper cut fees, keep big pension accounts

by
A combination of scale and forecast cost savings of running member administration and financial planning inhouse enabled the $12 billion Sunsuper to make a recent fee cut across pension accounts. The move echoes BUSS(Q)’s move two years ago to abolish all fees for allocated pensioners, although that has failed to attract as many of the high account balances as was hoped. In March, Sunsuper announced a 0.1 per cent reduction in fees, to 0.25 per cent, for the first $300,000 of pension accounts.

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Sydney manager seeded with $115m to ease your liquidity stress

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With $115 million in seed funding from an offshore equity partner, Sydney-based Shearwater Capital has begun targeting illiquid credit and special situations investment opportunities in the domestic corporate and real estate sectors. In June 2008, the manager, whose four co-founders have experience in both funds management and investment banking, was seeded by the US$3 billion Reservoir Capital Group, a US manager that invests stakes in new private equity and hedge fund managers, in addition to running its own portfolios.


Read more

Sydney manager seeded with $115m to ease your liquidity stress

by
With $115 million in seed funding from an offshore equity partner, Sydney-based Shearwater Capital has begun targeting illiquid credit and special situations investment opportunities in the domestic corporate and real estate sectors. In June 2008, the manager, whose four co-founders have experience in both funds management and investment banking, was seeded by the US$3 billion Reservoir Capital Group, a US manager that invests stakes in new private equity and hedge fund managers, in addition to running its own portfolios.

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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.

We acknowledge the Traditional Custodians of this land upon which Conexus Financial sits, the Cadigal of the Eora Nation. We recognise their continuing connection and unique cultural and spiritual relationships to the land, waters and community. We pay our deepest respects to them and their culture, and to Elders both past and present.

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