In-house asset management in the Australian superannuation industry

Authors

David R. Gallagher, Centre for International Finance and Regulation, Macquarie University, Capital Markets CRC LimitedFollow
Timothy Gapes, Centre for International Finance and Regulation
Geoffrey Warren, Centre for International Finance and Regulation

RIS ID

118612

Publication Details

Gallagher, D. R., Gapes, T. M. & Warren, G. J. (2019). In-house asset management in the Australian superannuation industry. Accounting and Finance, 59 (S1), 615-655.

Abstract

We examine how executives from the Australian superannuation industry perceive and approach the choice between managing assets in-house, versus outsourcing to external investment managers. We find that decision frameworks, as well as the perceived benefits and challenges of in-house management, can be described in terms of four elements: costs, capabilities, alignment and governance. Industry participants address these four elements in diverse ways. This is reflected in a variety of decision approaches, aspects that are considered and emphasised in decision-making, and implementation structures.