Institutional investors need advanced monitoring and investment tools to keep up with the expected increase in reporting requirements, BNP Paribas Securities Services believes.
The Federal Government's move to increase independent directors on super fund boards will place more emphasis on reporting and data analytics, the global custodian said.
BNP Paribas Securities Services head of product management, Justin Burman, said "We have noticed that an increase in new board members tends to result in an increase in reporting for senior management and those boards".
"There is also greater pressure on funds to move away from the traditional siloed view of risk to a more holistic understanding," he said.
Burman noted sophisticated technical tools to model and calculate scenarios were also needed to understand the impact to the fund's value under different scenarios.
"But the tools themselves are not enough. It is imperative to have access to data that is both comprehensive in coverage and granular in detail to be able to allow flexible scenario modelling," he said.
"Institutional investors will require advanced monitoring and investment tools and techniques to confidently handle the ever-growing variety of risks and increase efficiency and effectiveness."
The $75 billion fund has gained exposure to decarbonisation solutions in its first listed equities impact investment.
The superannuation fund is expanding its investment exposure to industrial property through a $1 billion partnership with Barings, a global investment manager.
AustralianSuper has usurped the Future Fund as the biggest Australian asset owner, jumping from 43rd to 36th place globally, according to an annual study by the Thinking Ahead Institute.
IFM Investors, the global institutional asset manager owned by superannuation funds, has signed a memorandum of understanding with the UK government to invest £10 billion by 2027.
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