Areas that will be covered in detail include :
After 50 years in Financial Services Kyle has recently retired from the role of Head of Investment Operations at QSuper. Kyle joined QSuper in 2010 to form the inaugural Investment Operations team to support the insourcing of the investment management function. In addition to authoring QSuper’s Unit Pricing policies and implementing their unit pricing control framework he has introduced QSuper’s securities lending program and has been instrumental in the development of a number of industry leading strategies including Lifetime Accumulation, tax segregation of assets and development of fund wide post-tax performance measurement methodologies. Kyle has previously provided consulting services to a number of major industry players and continues to do so during retirement. He has authored numerous articles in industry publications and continues to present frequently on a range of topics at conferences both in Australia and overseas.
Workshop Timing: 9:00 am – 4:45 pm
This in depth one day workshop will expose the realities and myths
of arguments for and against asset segregation for a superannuation fund. Attendees will be provided with detailed insights into the pros and cons of a project to segregate their funds investment assets.
This one day workshop explores the pros and cons of asset segregation between accumulation and pension pools for a superannuation fund. The workshop leverages the presenter’s first hand experience of analysis and implementation of asset segregation for superannuation funds.
Asset segregation can affect many stakeholders including fund members, regulators, trustees, investment managers and custodians. The potential costs and risks are highlighted to ensure the workshop participants gain afull and balanced view of the potential impact of asset segregation on their fund.
The impact on each of the stakeholders is reviewed with examples of actions available to minmise any risks or potential additional workloads involved
The workshop commences with an overview of the “what, why and how” of asset segregation explaing at a high level what it actualy means, the reasons for undertaking this project and the process to be followed.
This is followed by a detailed explanation of the operational solutions for the initial and ongoing tarnsition of assets between the two segregated pools. This session covers all asset classes and explores the pros and cons of a number of options for achieving segregation.
The workshop then examines “notional” segregation which can provide a simple operational solution but not without significant issues that would need to be addressed. All these issues are explained in detail.
Asset segregation will typically involve ongoing in specie transfers between the accumulationa and pension asset pools. A session is devoted to the frequency of in specie transfers and operational issues and solutions, examining the pros and cons of each solution.
Tax and operational risks are a key consideration for a fund considering asset segregation. Tax implications for the fund are discussesed in addition to the tax and operational risks of the project. Examples of both tax and operational risks are demonstrated along with mitigating actions available to reduce risks in accordance with the fund’s risk tolerance levels.
In addition to the immediate and ongoing benefits of asset segregation, a successful project opens the door to additional opportunities including a transfer to pension bonus for members entering retirement, tailoring of investment strategies to the different tax environments and enhanced tax provisioning in unit pricing (providingan opportunity to address a major risk area for any superannuation fund).
The final sesions are devoted to showing practical methods to enable the initial and ongoing financial benefits to be estimated. The session also highlights the nature and quantum of costs involved in undertaking an asset segregation project.
Principal, Athena IOC