Australian Super Assets Surge Driving Technology Investment

The Australian superannuation sector surged in size to $1.8 trillion in the fourth quarter of 2014, while contributions into superannuation funds with at least $50 million in assets were $22.7 billion during the quarter. Before long, the asset pool will reach $2 trillion, driven by rising asset values and compulsory superannuation contributions.

Data released in February by the Australian Prudential Regulation Authority (APRA) also reveal that over the 12 months to December 31, 2013, the value of all superannuation assets jumped by 20 per cent.

This huge inflow of money is forcing superannuation funds to update their technology to more efficiently manage this asset pool and with the view they will need technology to continue to scale into the future. The data highlights that the superannuation market is growing at such a quick pace that funds and asset servicers alike are being forced to look at technology solutions to better manage their investment data and streamline their operations.

Investing in investment data management technology now will allow those organisations to better monitor the performance of their assets and better manage their investment data to improve their operations.

There are clear regulatory incentives to improve the management of investment data. On 28 July this year, there will be over 12 new APRA data reports that superannuation funds will need to produce on Choice products.  Superannuation funds and asset servicers need to examine how they can use investment data management solutions to produce those reports in an accurate and timely manner, with APRA indicating that it won’t allow deadline extensions and that they are looking more closely at the quality of the data.

With these demands, the right investment data management solution is crucial to help superannuation funds of all sizes to scale investment data management, improve client service levels, meet increased regulatory requirements and deliver improved investment returns. With 24/7 processing capabilities, a world-class investment data management system can provide accurate and insightful performance analytics that are delivered to the people who need it, when and how they want it. Those organisations who harness the power of investment data will be able to answer the questions asked of them accurately and explicitly, and will have a firm grip on what they are doing and why they are doing it, allowing them to stay one step ahead of the competition.