Professor Deborah Ralston

The pre-eminent retirement incomes research organisation, the CSIRO-Monash University Superannuation Cluster, has secured another significant private sector backer with the decision by ANZ Wealth to join its ranks.

ANZ Wealth will join five other organisations as the key supporters of the $9 million research project that brings together academics from four universities, Monash, Warwick, Griffith and Western Australia, as well as the CSIRO, to examine the challenges facing the Australia’s retirement system.

The other five organisations are BT, Cbus, Mercer, Vanguard and Challenger, which, together Treasury, the ATO, the ABS, ASFA, National Seniors and AIST, form the Cluster’s Steering Committee with eminent researcher, Professor Hazel Bateman from the University of NSW. The Australian Centre for Financial Studies (ACFS), which promotes thought leadership in the financial services sector, leads the project for Monash University.

Patrick Clarke, Head of Direct Super and Investments at ANZ Wealth, said it was a privilege to be involved with the CSIRO-Monash University Superannuation Cluster.

“Over the past 18 months the work done by CSIRO and Monash in examining the dynamics and inter-relationships between superannuation and the wider economy, as well as the transition and retirement phase of Australians over 60, has been first class.

“We believe it’s critical that this research continues so that both the public and private sectors can base their decision–making on hard data in the vital area of superannuation.”

Dr Sarah Dods, CSIRO’s Research Director, Digital Economy, Digital Productivity and Services Flagship, said it was a tribute to the research done by the Cluster that such a significant player in the wealth management sector had decided to come on-board.

“We believe the research we have been conducting in areas such as ways to improve the participation of older workers is critical if we are to get the superannuation policy settings right, and for an organisation of the reputation of ANZ Wealth to give its support further endorses the value of our work.”

ACFS Executive Director, Professor Deborah Ralston, said the sheer size of the superannuation pool, at $1.8 trillion, posed important policy issues that the Cluster had been addressing.

“In the past, much of the research focus has been on asset allocation and the accumulation phase. But much less focus has been given to the post retirement phase and Australians over 60; a better retirement system is broader than superannuation, including pensions and private savings.

“What is critically needed for better policy and product development in post-retirement is a research evidence base.

“Funding for better health and welfare, accommodation and transport, they all have a bearing on the quality of the life enjoyed by older Australians and are important issues that demand a policy response, so the fact ANZ Wealth is giving its support to the Cluster is testimony we have the right focus and are adding to the pool of knowledge around retirement incomes policy.”

–END–

The post ANZ Wealth joins Monash-CSIRO Super Research Cluster appeared first on AdviserVoice.

Mercer’s allocation to AXA IM’s SmartBeta credit strategy complements other managers within their global credit portfolio, enabling Mercer to achieve a cost-efficient and well-diversified global credit exposure without the drawbacks of market capitalisation index tracking strategies.

Craig Hurt, AXA IM’s Director of Australia and New Zealand said local funds were taking notice of these intelligent, yet cost-efficient solutions:

“Since bringing our SmartBeta credit and SmartBeta equity strategies to the Australian market we’ve seen an increasing number of institutional investors look for a more intelligent and pragmatic approach to capture the market return,” he said.

AXA IM’s SmartBeta credit strategy takes an active approach to defining the investment universe, providing Mercer with a more attractive risk/return profile than that offered by passive index tracking strategies.

From a universe of bond investments determined by a number of rules-based and fundamental filters, AXA IM’s diversified portfolio is constructed such that it is not unduly exposed to either systemic or event risk at an issuer, sector or regional level. Using relative value analysis, those bonds that are deemed to offer the best value are equally weighted in the portfolio. Given the purchase price of a bond is critical to the overall return of a buy and maintain strategy, this approach maximises the beta of the portfolio over the longer-term.

Unlike index tracking, SmartBeta credit takes a pragmatic approach to portfolio construction and aims to buy well (the fewer issues that have to be sold before maturity the better), diversify intelligently to minimise exposure to risks, and implement efficiently as unnecessary or high transaction costs can destroy returns. AXA IM now manages over $2.5 billion in SmartBeta equity and $1.8 billion in SmartBeta credit.*

“AXA IM has a long and solid track record of managing buy and maintain type strategies and we anticipate further interest in these solutions in the year ahead. Our SmartBeta strategies are gaining significant traction amongst the post-retirement investment options offered by local funds given their focus on effectively harvesting beta while also seeking to minimise losses,” Mr Hurt concluded.

The post Mercer allocates A$150 million to AXA IM’s global SmartBeta credit strategy appeared first on AdviserVoice.

EQT made the decision to partner with an external asset consultant to help ensure it maintains consistency in its asset management and risk management activities across its retail and institutional business units, and to assist in meeting its legislative and regulatory obligations.

Robin Burns, managing director of EQT, said that Mercer was selected following an intensive review process.

“Mercer met our strict criteria for delivering asset consultant services, including providing quality research and product recommendations, reporting and monitoring in line with our prudential obligations, and having the breadth and depth of resources, including people and technology on a global scale, to meet the needs of both our institutional and retail businesses.

“The board took the view that Mercer is best placed to assist EQT in achieving industry best practice and further enhancing the services we provide to all our clients.

“In particular, Mercer will work closely with George Boubouras in our newly created CIO role to help deliver consistent returns across all mandates,” Mr Burns said.

For EQT’s institutional business, Mercer will provide assistance and guidance to EQT’s board investment committee including strategic asset allocation advice, reporting and monitoring, and portfolio construction recommendations.

The EQT retail business partnership objectives include: investment research and approved product list construction; model portfolio construction; and adviser support.

Mr Burns said that Mercer demonstrated an in-depth understanding of EQT’s strategy, needs and fiduciary obligations, and therefore the need to provide consistency and rigour across all EQT business units.

“As a trustee company with a 125 year heritage, we take our trust and fiduciary responsibilities very seriously and Mercer showed that it could satisfy our stringent requirements in these areas,” Mr Burns said.

The post EQT appoints Mercer as asset consultant appeared first on AdviserVoice.

The appointment of Mercer and Macquarie Private Wealth was the result of an extensive market review.

“With Funds under Advice of more than $6bn WHK is focused on providing clients with the best possible advice. We have undertaken an extensive review of our investment research over the last six months with a view to increasing our research capability in alignment with our investment philosophy. The investment consulting offered by Mercer and share execution capabilities offered by Macquarie Private Wealth was found to be an excellent fit for WHK and is consistent with our focus on finding ‘best of breed’ suppliers to assist us,” said John Cowan, WHK’s Head of Financial Services. 

WHK also undertook an extensive market review to appoint a new Head of Research.  This review has resulted in the appointment of Jeremy McPhail as Head of Research. Jeremy was the incumbent, and it is very pleasing to confirm our talent with WHK more than meets the market benchmark.

 “I am very pleased to be appointed to the role after a rigorous process and I am excited about coordinating our use of Mercer’s expertise for research throughout WHK accompanied by Macquarie Private Wealth’s services to help put that research into practice for our clients. Mercer is a leading investment consulting and research house with deep expertise in asset allocation and managed funds while Macquarie Private Wealth is the number one ranked full service retail broker by market share. Their expertise when combined with our existing internal capabilities will provide a greater depth of expertise for our growing base of advisers and diverse needs of our clients,” said Jeremy McPhail, Head of Research at WHK.

 “With our global network of qualitative researchers, consultants and asset class specialists, Mercer will bring innovative investment strategy and portfolio construction ideas to WHK,” said Brian Long, Mercer’s Head of Wealth Management in Australia and New Zealand.

The post WHK appoints Mercer for investment research and Macquarie Private Wealth for equities appeared first on AdviserVoice.