Abstract:
Superannuation fund investment arrangements have become increasingly complex over the past two decades due, inter alia, to the growth in sector specialist investment management and the increase in the number of available asset classes and sector products. At the same time, corporate resources devoted to superannuation issues have reduced due to a greater focus on core business activity and reducing costs. These factors, together with a failure of superannuation funds, on average, to capture the full advantages of sector specialisation, have driven the growth of implemented consulting, i.e., the sensible outsourcing of the specialist aspects of implementing these complex investment arrangements. This paper covers these trends in the superannuation industry and how investment arrangements can be effectively implemented using a manager-of-managers approach.