BACK OFFICE
While it is the front office that gets the glory, it is important to note the stress funds go under to make such teams possible.
The process starts with steering committees, interim project managers, external consultants, external IT companies building technology platforms and servers, putting compliance regimes in place and the internal pressure on departments such as HR to head hunt fund managers. If this is not done correctly, there is not only the reputational risk of failure externally, but also internally.
For this reason, Innes McKeand, head of equities at AustralianSuper, has gone on record as stating the fund “over-compensated” for the risk of its in-house equities project management in 2013 to ensure success.
This article has highlighted the work of the very largest Australian superannuation funds, but their successes are inspiring others. A survey by data house Super Ratings estimates that about 60% of Australian superannuation funds manage some assets in-house, with nearly one-fifth reporting a substantial commitment of 20% or more of assets.
