Super fund administration requirements on the rise
Superannuation funds are increasingly turning to forensic risk management tools in an effort to capture their absolute exposure in a range of portfolios.
According to JP Morgan Worldwide Securities Services, the global financial crisis has led to "a seismic change" in super funds, with funds seeking a better understanding of risk investment exposure in portfolios holding public, private and alternative investments.
"Client needs have clearly shifted from wanting a mix of in-house and outsourced or simple outsourced administration to needing a partner who can provide a full service administration solution," said Jane Perry, chief executive, Worldwide Securities Services Australia, who is speaking at the Conference of Major Superannuation Funds (CMSF) on the Gold Coast today.
"Clients are being driven by their need to increase transparency and reduce risk, costs and administrative burdens."
Perry also reported "significant market demand for products that can be used independent of traditional custodial services" and an increased interest in exploring full service administration services.
"Driving this seismic change in funds' requirements is the increased need that funds have to build a greater understanding of their risk of investment exposure, as well as exposure to supplier risk associated with using a range of financial services," Perry said.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
