Market report. Investment Management and Project Delivery. March 2023

This report 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

• There are key vendor assessment processes (RFPs) happening across the industry. Several across investment data platforms and performance systems.

• Continued merger and acquisition programs are being established with consolidation and integration projects.

• Some Investment Managers are at the tail end of implementing or upgrading front office Order Management systems.

• We are seeing several integration projects across the industry between Super Funds/Investment Managers and their respective Custodians. There are 2 main reasons for this - investment data platforms being updated and clients having to ingest data from new Custody platforms.

Employment market trends

• The job market has softened and there are fewer roles available in the market. Despite this, it is still difficult to attain good talent. There are several large projects across the industry consuming project resources and the best talent is being retained.

• Rates and salaries have stabilised and are hovering at the same levels as last quarter.

• There has been a gradual shift towards employers preferring workers locally and attending the office more regularly. With all our clients we are still seeing hybrid work arrangements as the preferred option with employees/contractors often being required to work 2 or 3 days a week in the office. However many businesses are still providing the option for full-time WFH for regional or interstate workers.

M&A Activity (recent announcements or in discussion)

• Spirit Super & Care Super

• Australian Retirement Trust & Commonwealth Bank Group Super

• TWU SUPER and Mine Super

• Australian Retirement Trust and AvSuper

Watch this space and questions moving forward

• Some well known Super Funds and Investment Managers are currently in the middle of major restructures. What impact will this have on project direction?

• Early indications suggest that we won’t see a return to the old ways of working, but with the pendulum shifting around the proportion of WFH available, will we see some businesses requesting 5 days in the office?

• So far this year we have not noticed any panic or projects being cancelled. That said, with the global uncertainty around markets, inflation and rates, there is still some unease. Will any key projects be put on hold?

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.