News

80% of Australian superannuation funds prefer outsourcing

OutsourcingAlmost 80% of Australian-based superannuation funds and asset managers would consider using an outsourced trading solution to assist with end-to-end trade execution and middle office needs, a Northern Trust survey shows. More than 80% of respondents also reported an increase in overall operating costs, with three-quarters identifying regulatory compliance or meeting technology and staff expenses as the key reasons. The firm polled approximately 100 delegates from Australian superannuation funds and asset managers with more than US$1.5 trillion in assets under management. Gary Paulin, global head of integrated trading solutions at Northern Trust Capital Markets, said: “Getting to grips with costs is a critical consideration for both asset managers and superannuation funds who are considering insourcing. The costs and risks associated with building and running a trading desk are significant. Regulators, clients and market participants are all demanding more information, greater detail, and stringent oversight and monitoring.” Angelo Calvitto, country executive for Australia at Northern Trust, said: “Superannuation funds and asset managers must work around a growing raft of global, regional and local regulation. The increasing risk of non-compliance with new regulatory obligations and complexity in achieving best-execution calls for a robust compliance and regulatory framework.” Calvitto added: “An outsourced partner for trading and execution can provide significant value by allowing funds to insource value and outsource complexity.” ©2019 funds global asia

Industry comments

Investing in tomorrow’s world

investmentAt times like these, HSBC Asset Management easily pivots towards emerging markets.

The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.

Sponsored feature: Navigating the complexities of FX execution and currency risk

A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.

Opinion

The emergence of AI-powered funds

Contradictory market sentiments from commentators have impeded the decision-making powers of the first wave of AI-powered ETFs, says Alvin Chia of Northern Trust Asset Servicing.

Transitioning to an era of scarcity

The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.

Asia credit: An outsized winner in the region’s energy transition?

Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.

A quiet revolution in Japan’s corporate governance

revolution, Japan, corporate governance, Shareholders, corporate, governance, standards, improvement, Tetsuro Takase, SuMi TrustShareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.

Executive Interviews

Executive interview: PGIM CEO on where the ESG flowers should bloom

Sep 27, 2021

David Hunt, president and chief executive of PGIM, tells Romil Patel about leading a top 10 global asset manager in times where “empowering and encouraging the kind of investment decisions as...

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...

Roundtables

India: An “obvious choice for global investors”

Jun 22, 2023

Funds Europe, the sister publication of Funds Global Asia, hosted an India investment discussion with two seasoned experts and asked if India is the ‘last one standing’ from the Brics phenomenon. We also hear that for India, the inclusion of Indian bonds in a major index may not be the desired...

Roundtable: Singapore comes of age as an Asian ESG hub

Dec 01, 2021

Strong ESG credentials strengthen the case for Singapore as a leader in Asia of the post-Covid recovery. Our panel discusses the risks and opportunities.