Super software must handle multi-asset classes

As the superannuation industry moves into the next phase of change and evolution, technology that aggregates super data and investment information must be able to manage a wider range of asset classes and providers, according to DST Global Solutions.

“What we’re seeing is one parallel when looking at the United States market where what we saw there three to four years ago was that they were taking more control of their destiny, their assets and their information,” DST chief executive Arun Sarwal told financialobserver.

“That’s a trend we’re really going to see in Australia, but there’s a lot of learning we take the other way, from Australia, as well.”

As super funds experienced a proliferation of asset classes, they had to be cognisant of scenarios where information from property, hedge funds, fund-of-funds and multi-managers, for example, not only had to be collected, but the multiple data streams had to also work in order to produce coherent performance or position reports, Sarwal said.

“At the moment, alternative asset classes in some of the larger super funds here probably make up 5 per cent to 7 per cent, but one could imagine that it could grow up to 30 per cent along with property,” he said.

“Also I think global investment at the moment is largely Australian Securities Exchange-related, certainly on the equities side.

“So as we see all of that changing, the whole management of investment data is going to get that much more fragmented in one respect, but also there will be multiple providers come in.”

DST had been in discussions recently with a number of super funds in order to understand the direction they were taking when it came to managing investment data with technology, he said. “What’s been reassuring is that there are some super funds here that clearly have a tremendous vision and absolutely the right vision – they know what their priorities have to be, particularly around technology,” he said.

“I think however quickly one wants to deploy technology, first you must understand what you need and then the implementation, but there’s also the mindset change and the strategy change.

“What’s been really great to see is that there are a number of super funds that know where they need to go and after talking to them we’re going to see some real technological developments that will set them up for the next phase.”