Chris Condon, the former head of Russell Investments and CIO of MLC, has joined with quant-orientated fund manager Peter Vann to develop a reporting service focused on retirement. They have formed CV Solutions.
The mass-customizable service involves a sophisticated stochastic model which generates a report for each member based on his or her circumstances. The service appears ideal for the new-style, member-directed, platforms being introduced by major super funds, about which there has been some concern over the level of advice which may or may not be available to members.
Condon said the efficiency of the software meant that the tailored reports could be delivered to hundreds of thousands or even millions of members.
“It takes into account ‘human capital’ (i.e. contributions to be made in the future) and deals explicitly with both investment risk and longevity risk. The reports are easy to understand, but do not dumb down the key risks of investment and longevity,” he said.
“Interestingly, it is the sophistication of the model that allows for the creation of these difficult issues in everyday language, and with easy to follow charts.
“Providing hard-copy retirement adequacy assessments to members is a way of getting them engaged. That part of the service is complemented by a website that allows members to find out more if they so desire.”
Condon left MLC in March 2010 to form his own consulting firm, specializing in strategic advice for institutional investors. Vann left the boutique Constellation Capital, which he had joined in 2000, last year. The Qantas super fund, which was a 50 per cent foundation owner of Constellation, quit its stake in 2010 and the firm was subsequently wound up in August last year.