Almost 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 
At 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.
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.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders 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.
Robert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.
China's internet market presents one of the most compelling long-term growth potentials for investors today, given the catalysts supporting the sector from both macro and fundamental perspectives, explains Dr Xiaolin Chen, head of international, KraneShares.
