POWERED BY MOMENTUM MEDIA
Custodians face fractured future super relationships, says DST
Technology could be the circuit breaker in the close relationships many super funds have with their sole custodian, according to DST Global Solutions regional head of business solutions Rhys Octigan.
According to Octigan, Australia's largest superannuation funds have already started to split custodian duties based on "best in breed" assessments, with the industry moving further towards the US model of outsourced relationships.
"As the big (US) pension funds merged and got bigger they started to bring this sort of stuff in-house," he said
"We think there will be continual merging of (Australian) super funds and increasingly the super funds will be looking for investment data management solutions."
Multi-level custody arrangements could occur where funds utilised different providers' competitive advantage and managed other functions themselves.
A fund may choose one provider for middle office, one for its hedge fund solutions and another for its performance analytics, Octigan said.
"We're beginning to see big super funds have relationships with multiple custodians rather than a single one, and you're seeing that with some of the state sovereign wealth funds as well," he said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities.
The mega fund has announced a $2.2 billion investment in a leading data centre platform, bringing its global real assets portfolio to nearly $60 billion.
In this latest edition, Australian Retirement Trust’s head of global real assets Michael Weaver explains the fund’s approach to finding new opportunities as it surpasses $300 billion in funds under management.
Fund managers remain hopeful for a Chinese revival story despite the “disappointing” stimulus package announced this week.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
