Call for super funds to centralise portfolio management

16 May 2019
| By Hannah |
image
image
expand image

It’s time for super funds looking for new ways to value-add with their multi-manager active equity programs to get serious about using a centralised portfolio management (CPM) approach, according to a global implementation specialist.

A CPM would ideally separate the idea-generation function of each active equity manager in a fund’s system from the implementation function, as well as separating the latter.

The approach could also see funds get a whole-of-equities risk dashboard, centralise proxy voting, and minimise tax leakage on Australian and global equity portfolios, the chief executive of the specialist’s, Parametric, Australian arm, Chris Briant, said.

He also said that current market conditions invited a CPM approach, with “market volatility, over-priced equities, scarce alpha and frugal fee budgets creating a perfect storm for super funds with multi-manager active equity programs”.

“In this investment environment, the logical response is to reconsider how the multi-manager equity ‘jigsaw’ fits together and can be implemented using CPM,” Briant added.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

4 hours 36 minutes ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

22 hours 40 minutes ago

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....

23 hours 44 minutes ago