Analysis

(pictured: Ulrich Braun)  In the past few years, ESG management has taken on a holistic hue over most big fiduciary funds as an integrated part of their strategies. It is now also starting to permeate niche asset classes that the funds invest in. The latest to be offered in Australia is European property. Through its…

(pictured: Sean Healey)  There are some big secular changes occurring in funds management and there are some cyclical or even faddish changes. Someone who studies these trends more than most is Sean Healey, the chairman and chief executive of Affiliated Managers Group. AMG is the largest multi-affiliate manager in the world, with 39 firms under…

(pictured: Lou Maiuri) Liquidity has risen to become top priority in the management of fiduciary funds for both asset owners and fund managers, according to a joint survey by State Street and the Alternative Investment Management Association. In a report published last week, London-based AIMA and Boston-based State Street say regulations stemming from the 2008 financial…

The UK financial regulator has gone to town on the country’s funds management industry calling for a raft of measures to reduce fees, improve disclosure and increase competition. In a wide-sweeping report released last week, the Financial Conduct Authority (FCA) recommends stronger investor best interest requirements for fund managers as well as introducing an “all-in…

(pictured: Ray Dalio) by Greg Bright Ray Dalio is one of the world’s great investors. He is also a self-confessed misfit. I had lunch with him in the 1990s, when he was on a rare visit to Australia – represented at the time by Sheridan Lee and Tony Tuohey. What he said then resonates now. The…

(pictured: Carol Geremia) For as long as there have been performance surveys, starting with Bruce Cook’s Mercer Campbell Cook & Knight in the 1980s, short-termism has been a problem for big super funds. They continually tell themselves not to think that way, but it seems, short-termism is very difficult to avoid. A big international survey undertaken…

(pictured: Susanne Willumsen)  As demand for smart beta strategies grows, so does the range of offerings from managers looking to assist further in the evolution of quantitative investing. For some, such as Lazard Asset Management, this involves blending factors and staying one step ahead of the herd. Susanne Willumsen, Lazard Asset Management director, portfolio manager…

(pictured: Cathy Nance) The Productivity Commission’s current review of super has the potential to turn the industry on its head. It’s the second part of the review, the report being delivered next year, and not the first part due this month, which will have all the impact. Cathy Nance, influential actuary, trustee and head of PwC…

(pictured: Oliver Hesketh)  With the Productivity Commission review looking at the efficiency of the super system, including the consideration of scale, and with regulator APRA continuing to focus on size as a potential deliverer of greater efficiencies, wouldn’t you think it would be good to look at the actual evidence? Oliver Hesketh, a partner at…

The KiwiSaver cluster-bomb incident should serve as a warning to other jurisdictions, according to global ESG research firm, Sustainalytics. Vanguard and other index providers in New Zealand are already being affected. In a paper published last week, Sustainalytics says the KiwiSaver cluster-bomb debate – that saw a range of providers ultimately change some underlying index…

(pictured: Michael Aked) When investors think about mean reversion they normally think about asset valuations. They should also think about liquidity, because transaction costs associated with liquidity also mean revert. They are currently at all-time lows and are set to shoot back up. A report by Research Affiliates of the US says that the costs to trade…

Perhaps it’s time for big super funds to elevate their retirement solutions staff with the appointment of a ‘chief retirement income officer’ to complement the role of chief investment officer, according to a report produced jointly by KPMG and Challenger. Funds have been working on the problematic retirement incomes issue for years now, well aware…