Boutique collaboration can provide competitive advantage

Boutique super funds can band together to become competitive players in Australia's super industry, despite the Future of Financial Advice (FOFA) and superannuation reforms, according to Quadrant Super chief executive Wayne Davy.

Davy said following Quadrant's success with many of its collaborations, it was seeking new partners to seek mutual benefit with.

He said that although some smaller funds may find mergers and acquisitions a quick fix for regulatory reform and financial pressures, smaller funds could use the changes as an impetus to provide innovation and collaboration.

'"There will always be a place for nimble, inventive boutique funds - not every member wants to be just another faceless number to a colossus. 

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"Especially if they're working together, small funds can be competitive players in the super space because of - not in spite of - their compact size," he said.

Davy listed advice delivery, collaborative investing and pooling administration resources as ways for smaller funds to reduce costs and comply with legislation.

"Cooperation is a real and workable option for small funds.

"Partnering can be a first-rate way to achieve economies of scope and scale while maintaining a meaningful affinity with members and delivering the kind of personal service a big fund simply cannot provide," he said.

In July 2011, the fund started a joint financial advice initiative which involves Vision Super, Statewide Super and WA Local Government Super.