Market report – Investment Management and Project Delivery. March 2022

This is aimed at providing a high-level snapshot of the recent market activity across project delivery in the Investment Management space across Australia.

Current project trends – what are we seeing

• Several businesses are currently reviewing their existing applications and operating models with a view to make transformational change across their entire eco-systems. As a result there are several RFP’s being run in parallel – OMS/PMS’s, data platforms and performance. Some large transformation projects will likely result.

• As before, continued integration and separation projects across the industry include IOOF/MLC, Resolution Life/AMP Capital, Macquarie/AMP Capital, BT/Pendal Group, QSuper/Sunsuper and numerous Super Funds. This has driven a number of integration, migration and operating model changes.

• Several organisations have been embarking on large investment data projects or are about to.

• Noticeably a couple of super funds are investing more time and money into their private markets business and systems. Expect that there will be more activity in this space over the coming years.

Employment market trends

• Over January and February there appeared to be more candidates on the market after a prolonged period of skills shortages. However this appears to be short-lived as we now appear to be returning to a market where it is tough to find quality investments project professionals.

• Most companies have now adjusted to the higher salaries and rates being demanded. Organisations still offering the same money as this time last year, or in some instances 6 months ago, may struggle to attract good quality talent.

M&A Activity (in progress)

• Resolution Life purchasing AIA Super and Investments

• CBUS & Media Super

• Hostplus & Statewide

Watch this space - questions moving forward

• 2021 was an extremely buoyant year in the Investments projects space, will this continue? Given the project trends noted above we suspect that it will.

• There has been a new legislation recently passed – Your Future Your Super (YFYS), one of the key aspects is that unperforming super funds won’t be able to acquire new members. Will this lead to even more consolidation across the industry? We think so, as a taste of what is come, APRA are now forcing EISS Super and Christian Super to merge with larger funds

• With international flights resuming, should we expect to see more skilled resources coming back onshore or skilled visas arriving?

• Will rates and salaries flatten out after a sustained period of improvement?

If you would like to discuss any of the above or would like to have a general discussion about the market, please call Steve Ash on 0439 441 758.