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
The market remains active with custody transitions, particularly with NAB Asset Servicing winding down, prompting shifts to new service providers. Other large transitions are also underway.
Several Super Funds are in the midst of implementing new systems for unlisted assets (private markets). This trend is likely to continue with ongoing allocations to private assets.
Due to continued cost pressures, many Investment Managers are seeking to consolidate technology and optimise their operating models.
There is a persistent focus on migrating services from on-premise to the cloud across various investment applications, with a significant emphasis on investment data platforms.
Employment Market Trends
As we enter the new financial year, we’ve observed some positive signs in hiring, although not at the levels some had hoped for. We expect the market to rebound strongly at some point.
Many job seekers are understandably frustrated by the current market and the management of advertised roles. With competition often exceeding 100 applicants per role, we have observed some highly qualified candidates are being overlooked.
We've observed a trend towards offering more fixed-term roles rather than day-rate contracts, typically indicative of a softer market. Employers should be cautious, as they may lose resources when the market shifts back towards favouring day rates.
M&A Activity (Recent Announcements or Discussions)
Maple-Brown Abbott to be acquired by Antipodes Partners
Qantas Super to merge with ART
APEX to acquire Trustee Executors Limited (custody and investment accounting)
GDG acquisition of Lonsec
Australian Ethical to acquire Altius Asset Management
Telstra Super is in the market to be acquired
Watch This Space and Questions Moving Forward
We've noticed a recent minor uptick in merger activity after a slowdown over the past six months. If this trend continues, it will positively impact the projects and transformation market.
A small number of projects are emerging in the ESG and Sustainable Investments sectors, focusing on building more robust systems. While these business areas have grown rapidly, this hasn’t always been matched by investments in new system capabilities. Could this be about to change?
Some clients anticipate improvements in employment opportunities in October/November based on current market observations. While this is promising, it’s essential to temper expectations given recent macroeconomic conditions in Australia.
If you'd like to discuss any of the above or have a general discussion about the market, please call Steve Ash on 0439 441 758.
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