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
Several domestic and global Investment Managers currently have RFP’s/RFI’s out with custodians (back and middle office) and registry providers, or are considering making changes. In addition to this, some third parties have been appointed and the transition projects are about to start.
Some Super Funds and Investment Managers are still reviewing how to optimally leverage and utilise investments data to improve investment decisions and reporting. This is a combination of reviewing their investment data platforms and how well they integrate into internal systems and their service providers/custodians.
Several implementations are occurring across performance and attribution systems with both Investment Managers and Super Funds. Some are part of broader target operating model changes.
Employment market trends
After an initial influx of new engagements/roles post financial year-end, the level of hiring activity has certainly dropped off. Whilst there are undeniably more candidates than usual on the market, it can still be difficult to identify specialist project practitioners with deep investments expertise, in areas such as investments data, IBOR, alternative assets and performance and attribution.
There has been very little movement on rates and salaries.
We have observed that businesses are taking longer than usual to run their recruitment processes and there is less urgency to close out roles than there was at this time last year.
M&A Activity (recent announcements or in discussion)
Centric Super and encircle Super
SS&C and Iress Managed Funds
Betashares and Adelaide and Bendigo Bank
Watch this space and questions moving forward
With the continual growth of sustainable investments, we have observed that there are more ESG personnel and teams being established with Investment Managers and Super Funds. However the data and systems capability is still relatively immature from an end user and vendor perspective. There is a reasonable assumption that there will be more ESG focused projects in the near future.
2021 and 2022 experienced near record levels of recruitment across the market. With migration expected to be at pre-covid levels for 23/24 and the market conditions softening, there is more competition for roles however this can all swing around quickly. What does 2024 have in store for the market? Conversations across the market indicate some improvement in early 2024.
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.
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