Eagle eyes in-housing

28 April 2016
| By Hope William-Smith |
expand image

Eagle Investment Systems are working with superannuation funds that are enhancing their in-house investment capabilities, as reported by Super Review that two-thirds of Australian super funds are expecting to bring asset management options in-house over the next 10 years.

Eagle's Europe, the Middle East and Africa, and Asia-Pacific head, Marc Rubenfeld, attributed the desire to reduce costs and deliver returns as a key reason behind what is becoming a developing trend.

He also said that consolidation in the superannuation market has had a part to play, with the average fund size being driven higher.

Rubenfeld said he was confident the trend will continue, with many smaller superannuation funds likely being subsumed over the coming years.

In addition to trimming costs, Eagle found that by bringing investment management in-house, funds are looking to get closer to their assets, giving them greater flexibility and autonomy for managing assets effectively.

Eagle said the four key technological barriers to in-house management were:

  • Ability to measure risk and performance across complex investment portfolios and different asset classes;
  • Flexibility to accommodate future regulatory changes as well as new investment trends and asset classes;
  • How to manage technology: in-house, outsource, or a co-source approach; and
  • Ensuring that your technology can support future growth and will be fully supported in the long term.

Rubenfeld said that a replacement of the legacy system or development of new technological infrastructure could be a necessity, with the selection of experienced technology vendors as the first step.

Read more about:


Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sidebar 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. ...

3 months 4 weeks ago
Kevin Gorman

Super director remuneration ...

4 months 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 ...

4 months ago

While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their ...

12 hours ago

Despite a period of increased volatility, several considerations suggest that the bull market will remain intact and the trend in shares will remain up, an economist has ...

12 hours ago

HESTA has slammed Woodside’s climate transition action plan, pointing to “significant” gaps....

12 hours 58 minutes ago