Funds Management MC

Funds Management MC

How UniSuper, Cbus and Future Fund manage property climate risks

Posted by Anton Murray Consulting on . Posted in Funds Management MC

AsianInvestor

Rapidly rising appetite for Australian property among regional and international asset owners could leave the institutions exposed to billions of dollars of lost investment value. However, asset owners such as UniSuper, Future Fund, Cbus, Lendlease and fund managers argue that it’s possible to protect returns by combining active investing and pricing in climate risks. The rising dangers of a warming world are increasingly on the mind of Australian CIOs. On January 11 UniSuper chief investment officer John Pearce took an underweight position in the insurance sector, citing concerns over climate change having implications over insurers’ returns.

The country’s property sector looks particularly vulnerable. A 2019 report by the Climate Council in Australia said local real estate could lose A$571 billion ($436.31 billion) in value by 2030 due to climate change and extreme weather. Climate risks could also cost owners 1% or more of the property’s value per annum.  Despite these risks, local and international asset owners are keen to invest into more Australian property.

The rest of this article can be found at asianinvestor.net.

TelstraSuper chair calls for equality in retirement

Posted by Anton Murray Consulting on . Posted in Funds Management MC

Investment Magazine

Anne-Marie Corboy, chair of Australia’s largest corporate superannuation fund, talks to Investment Magazine about sustainability, the Retirement Income Review and the urgent need for policies that help disadvantaged women.

Q |With 30 years’ experience as a director and chair and a former chief executive of HESTA, what policies do you think Canberra should put in place to improve the retirement outcomes for women who are disadvantaged?

A |Women in Super have very sound policies in this area which they have been advocating for some time – and which I strongly support – including an increase in the superannuation guarantee, abolishing the $450 threshold and paying superannuation on parental leave. A further important issue being discussed more is the taper rate for access to the Age Pension, just another policy decision which has a major impact on women. This policy needs more discussion and reform. I would also like to see intra-fund advice expanded so that access to the Age Pension can form part of the advice in relation to superannuation balances.

The rest of this article can be found at investmentmagazine.com.au.

Super merger mania could hurt members: Bennelong

Posted by Anton Murray Consulting on . Posted in Funds Management MC

InvestorDaily

Diversity needs to be preserved as the consolidation trend in superannuation accelerates, a fund manager has warned, fearing regulators’ pressure on funds to merge could kill competition. APRA has encouraged the movement, urging small and underperforming funds to amalgamate and save their members from “suffering” further deterioration. The executive director of the regulator’s new superannuation department, Suzanne Smith, said funds should also be looking to simplify their offerings.

The House of Representatives standing committee on economics interrogated super funds for the first time last week. During the hearings, government MPs focused largely on the findings of the Productivity Commission, which estimated there are 40,000 super products available to consumers in the Australian market. Labor MP Andrew Leigh noted in a typical supermarket, there are 20,000 to 25,000 products available.

Investors demand climate change action

Posted by Anton Murray Consulting on . Posted in Funds Management MC

InvestorDaily

Financial industry heavyweights have called on governments and businesses worldwide to step up climate change efforts. A group of 415 investors who collectively manage assets worth US$32 trillion have called on governments to take stronger actions to meet goals as set out in the Paris climate agreement. The statement from the Institutional Investors Group on Climate Change was first launched in June ahead of the G7 summit in Canada but has been reissued to coincide with the current negotiations happening in Poland.

Backers of the statement include pension funds, asset managers, insurance companies and more, all calling on governments to do more to limit global warming and sets out the measure’s investors need to see to help them further shift their portfolios. “Much more needs to be done by governments to accelerate the low carbon transition and to improve the resilience of our economy, society and the financial system to climate risks,” the group said in a statement. The group has said actions like phasing out thermal coal power and fossil fuel subsidies were needed and leading on climate change would produce new jobs and investment opportunities.

The rest of this article can be found at investordaily.com.au.

World’s first blockchain marketplace set to launch

Posted by Anton Murray Consulting on . Posted in Funds Management MC

InvestorDaily

An entire firm fund transaction network will be migrated to blockchain in what is being described as the world’s first blockchain funds marketplace. Calastone, a global fund transacting network has announced that its network of over 1,700 financial organisations will be migrated to blockchain in May 2019. The migration to the company’s new Distributed Market Infrastructure is expected to reduce the cost and risk in the way which units in managed funds are brought, sold and reported.

Calastone’s chief innovation officer Campbell Brierley said the infrastructure would create a frictionless ecosystem which would eliminate risks. “By making friction-free trading accessible to all parties in the value chain, we are creating an environment that marks an inflection point for the future of the funds sector, optimised to meet the needs of customers and investors now and in the long-term,” he said. Mr Brierley said the service would allow organisations to innovate, stay competitive and offer new investment opportunities to the modern investor.

The rest of this article can be found at investordaily.com.au.

Super funds struggling with shift to digital

Posted by Anton Murray Consulting on . Posted in Funds Management MC

InvestorDaily

Researcher Investment Trends’ latest Super Fund Member Engagement report, compiled from surveys of the member services and activities of Australia’s largest 44 super funds, has found that super funds are “still learning to manage” their move to the online space. “Many super funds are making inroads in the development of their digital member service platform, but the move from internal processing systems to real-time member facing applications has been challenging,” said a statement from Investment Trends. Investment Trends technology analyst Ian Webster said the report found several super funds encountered various online stumbling blocks.

“This year, we observe many funds struggling with the reliability, consistency and quality issues in the real-time digital-based channels used to support and interact with their members,” he said. “However, super funds are gradually mastering the challenge of managing these channels more effectively, building upon basic content publishing towards digital channels that provide easy access to services and promote two-way engagement with members.” Among the top 10 super funds ranked according to overall member engagement score, nine were industry funds, with ANZ Smart Choice representing the only retail fund at tenth place.

The rest of this article can be found at investordaily.com.au.

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