cost

Custody

APRA lambasted over cost of compliance

APRA came under fire from speakers at the Investment Administration Conference for the cost and impractical nature of  much of the compliance with new regulation. On a panel session on the subject of Stronger Super held in Sydney on February 12,  APRA general manager Greg Brunner, heard of the stress that compliance was causing for […]
Investment Strategy

2014 – the hardest year yet for compliance

Those helping super funds to manage their investment data report an industry groaning under the weight of more compliance than it has ever faced before. Providers say the cost of increased workloads and systems build will be passed back to members, while opportunity costs are being incurred from the holding up of innovation. DST Global […]
Investment Strategy

REST to run active Aussie equities in-house

The $27 billion industry superannuation fund REST will push the button and go live with its internal, actively-managed Australian equities strategy in December, expanding on its established funds management capabilities in infrastructure, fixed income and cash. REST, which has been internally managing money for over 16 years, has been running a paper Australian equities portfolio […]
Unintentional

The unintended consequences of regulation

The latest round of legislation aimed at overhauling the system has been a challenging period for super funds which have been focused on launching low-cost default MySuper products, overhauling back office transactions through the SuperStream measures, while also improving governance and disclosure. Three-quarters of super fund chief executives recently surveyed by the Financial Services Council […]
Administration

Super cost pressure building

Not-for-profit superannuation funds will struggle to deliver low-cost products to market, despite the government’s intentions with reform, according to Nathan McPhee, chief executive of SuperRatings. “The fee position that industry and not-for-profit funds have held for so long is effectively gone. There’s an enormous cost pressure that’s building in this industry,” he said at AIST’s […]
Hedge Funds

Silk: cost savings a moral imperative

AustralianSuper’s shift to running a third of its assets in house by 2018 will add $180 million to members’ returns, says chief executive Ian Silk, who sees the move as a moral imperative. The fund is setting up internal teams to run Australian equities, property and infrastructure this year and will steadily take on other […]
Retirement

Industry funds deny low-cost status

Industry funds will not own the low-cost space post-Stronger Super and the industry should be prepared for the influx of bespoke products like SMSFs and individually managed accounts (IMAs), said Paul Watson, executive manager of member choice and advice at Hostplus. Speaking at last week’s Post-Retirement Conference, held by Conexus Financial in association with AIST, […]
Administration

STP saves time, risk and cost

Since the advent of mainframes in the financial services sector, the term straight-through processing (STP) has been with us to describe the ongoing integration of the front, middle and back offices, connecting parties to each trade electronically in order to reduce inefficiencies – and risk. By allowing the automatic transfer of information from one part […]
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