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TCorp becomes NSW’s biggest fiduciary fund
Stephen Knight
NSW Treasury Corporation (TCorp) last week completed the amalgamation of NSW’s funds management activities, it was announced by the NSW Treasurer, Gladys Berejiklian. The amalgamation makes TCorp a top-10 Australian investment manager, with more than $70 billion under management.
The amalgamation involved over 12 months of project work between NSW Treasury, TCorp and NSW’s two single-largest guardians of financial assets, Safety, Return to Work and Support (SRWS) and SAS Trustee Corporation (State Super).
The next two largest fiduciary funds based in NSW are the $53 billion First State Super and then the $36 billion REST Industry Super, both of which will overtake TCorp in time because of SG payments. State Super is a closed fund. Australia’s largest fiduciary fund is the Future Fund, with more than $100 billion, and the largest super fund is AustralianSuper, with more than $80 billion. Both are based in Melbourne.
The project was led by independent expert, Michael Cole, and involved stakeholders across the Government and the three agencies. The resulting funds management operating model, developed between TCorp, SRWS and State Super, will standardise external manager selection and due diligence, generating substantial efficiencies and savings for the State. In addition, the amalgamation aims to realise scale benefits and achieve superior risk-adjusted investment returns. The amalgamation brings together the majority of investment professionals from TCorp, SRWS and State Super. This combined investment team will manage the TCorp Hour-Glass Funds, Self Insurance Corporation’s Treasury Managed Fund (TMF), the defined benefit assets of the State Super Pooled Fund, and the assets of all five SRWS schemes
Stephen Knight, TCorp chief executive, said: “We are pleased to welcome the investment teams of State Super and SRWS as part of TCorp. Combined with our existing high-calibre investment team, we will develop a first-class investment management model for NSW public funds…
“We have worked closely with State Super and SRWS over the past year to better understand their ongoing needs from the amalgamation. As the boards of the respective agencies retain responsibility for their investment objectives and asset allocations, TCorp will continue to work collaboratively to ensure we deliver outcomes that meet their needs.”
The leadership team of the amalgamated investment management activity at TCorp comprises Mark O’Brien, general manager investments, Jonathan Green, general manager investment implementation and operations, and Steve McKenna, general manager investment and client strategy.
