Bigger On The Inside
Why funds don’t need scale to create their ideal equity investment structure
This paper is the second in a series of Parametric research briefs that explores the use of Centralised Portfolio Management (CPM) to solve problems that can keep superannuation fund trustees awake at night. CPM is a well-established solution in the U.S. which has recently become available to Australian superannuation funds. It involves unbundling the services that equity managers normally provide into two parts. The first is idea generation, with managers retaining an idea generation mandate, and the second is the implementation piece being centrally coordinated and delivered by a specialist after-tax focused CPM manager.