By Richard Fogarty* Insurance companies have been operating in a tough market since the global financial crisis began in 2008. Investment returns have been constrained by the low interest rate environment. Global sales, meanwhile, are lagging in most regions: total real premiums fell in three of the four years between 2007 and 2011 and in…
(Pictured: Daniel Birch) Foreign exchange transactions represent, perhaps, the final challenge for pension funds around the world as they look to improve efficiencies in the implementation of investment strategies. And from all accounts, it’s worth the effort to study the common practices in this market. A lot of money can be saved … or wasted….
(Pictured: Robin Burns) Equity Trustees (EQT) has outsourced about A$2.5 billion of custody and administration to State Street under its year-old “Project Foundation” management strategy. While senior management at EQT could have been forgiven for being distracted from the management plan due to the recent battle to acquire Trust Company, the deal streamlines the remaining…
(Pictured: Nathan MacPhee) After a tumultuous year for Australia’s super funds, with the implementation of regulatory changes across a broad spectrum of their activities and with continued market uncertainties, the finalists in the SuperRatings Fund of the Year Awards should be well satisfied. The finalists are… Â Super of the Year Finalists: AustralianSuper CareSuper Catholic Super…
(Pictured: Fred Ingham) The global hedge fund industry, which has over the past few years reduced its reliance on the high net worth market by appealing more to institutional investors, looks like going through another transformation as funds gain new exposure to the advised retail sector. In Australia, global manager Neuberger Berman (NB) has developed…
(Pictured: Roger Urwin) You might expect Roger Urwin to say that big pension funds should put more time and effort into their governance. The global head of investment content for Towers Watson has devoted much of his recent career to studying fund governance. Supporting his views, he presented a case study last week of three…
(Pictured: Carl Hess) If four of the major themes driving world economic growth play out, super funds will be looking to express that in their asset allocations and portfolio construction. For Towers Watson, this means: reduced home country bias, overweight emerging markets and incorporating thematic views both within and across the equities portfolios. At its…
(Pictured: Harry Liem) With a lot of attention being devoted to risk since the global financial crisis, Mercer has issued a reminder of the importance of modeling tools which go beyond mean-variance analysis. Harry Liem, a Mercer principal, says they should be seamlessly integrated. These increasingly advanced modeling tools include: risk factor analysis – examining…
(Pictured: Michael Winchester) State Super Financial Services, which has about A$12 billion under advice and management, has introduced an alternatives program and is looking to allocate up to $200 million across its diversified portfolios to hedge funds over the next six months. Michael Winchester, investment strategist for SSFS, told the AIMA Australia conference in Sydney…
(Pictured: Rory Wainer) In an intriguing deal, Link Group, the big private equity-controlled super fund administrator and share registry company, has bought Syncsoft, a well-regarded systems business which boasts some of Australia’s largest super funds as its clients. The deal is expected to be announced today (Monday). Syncsoft’s 80-or-so staff have been told of the…
