Performance Magazine - Issue 24


Performance Magazine - Issue 24

September 2017

The Superannuation sector in Australia is the fourth largest in the world and ranked second in the Mercer Global Pension Index.

Deloitte Actuaries have predicted Superannuation funds will continue to develop, reaching an estimated AU$9.5 trillion by 2035. Alongside the continued rise of the Asian economy, the Australian wealth industry is ideally placed to participate.

As the Australian wealth market has grown, there has been a steady increase in portfolio diversification, with significant
opportunities for fund managers across the globe. The size and accumulation nature of the sector has also fostered the growth of world-class infrastructure investors. Australia was home to some of the world’s first infrastructure financial assets, and it continues to be a market leader in this sector with globally recognized managers such as IFM Investors, Macquarie, AMP Capital, and QIC.

In a previous edition, we published an article by IFM Investors in relation to implementing currency hedging. Now we interview QIC’s Chief Executive Damien Frawley to understand his view on infrastructure assets in Australia and overseas and why he thinks it is an investment with multiple benefits.

As the sector grows, so does its sophistication and inevitably the regulatory oversight. This regulation is as multifaceted as always, but in this edition we look at Operational Due Diligence and what local and overseas investment managers should expect as requirements come into place.

To unpack the consequences of these additional requirements, we have spoken to Philip Hope, the previous CEO of Morse Consulting and now consulting Partner in Deloitte Sydney.

In summary, Australia’s unique superannuation system has driven a large, diverse, and sophisticated market with world-class skills in asset classes such as infrastructure—a system that will drive continued growth opportunities for local and overseas managers albeit with increased regulatory demands.

Performance Magazine 24

Published: October 2017

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