Q&A with LUCRF's new Head of Investments
Leigh Gavin spent 14 years at Frontier, most recently as a senior consultant, before moving to LUCRF in May as the super fund's new head of investments. In a Q&A that is both wise and funny, Leigh tells Industry Moves about his goals and the challenges ahead; names the person he most admires, and why she is the "antithesis of everything that is wrong" with this industry; and reveals a talent for... well... lets just say it's hard to explain.
Leigh Gavin spent 14 years at Frontier, most recently as a senior consultant, before moving to LUCRF in May as the super fund's new head of investments. In a Q&A that is both wise and funny, Leigh tells Industry Moves about his goals and the challenges ahead; names the person he most admires, and why she is the "antithesis of everything that is wrong" with this industry; and reveals a talent for... well... lets just say it's hard to explain.
What are you most looking forward to in the new role?
The opportunity to work closer to the members. Being an asset consultant for 14 years was very enjoyable and rewarding and a great learning experience, but you are always that one step removed from the end user and the end purpose. I've already enjoyed working with the other departments at LUCRF Super and learning more about our members' needs and wants.
What are your biggest goals for the first 12 months?
Ensuring the strategy and portfolio suits LUCRF Super members. Our members are some of the hardest working and lowest paid superannuants in Australia, so imported "solutions" from North America or Europe are not necessarily right for our members, most of whom are not self-funded retirees (e.g. the vast majority are not concerned about a $1.6m lifetime contribution cap).
The decisions we make today can have a material impact on our members' ability to retire with dignity at some stage in the future. Therefore, one of the biggest risks for our members might include the risk of not taking enough risk, so long as they are being adequately compensated for those risks.
...and your greatest challenge/s?
We're increasingly not getting adequately compensated for those risks in this environment. But sandwich-board prophesies proclaiming "the end is nigh" may be premature too (possibly many years premature). It's a tough but thoroughly fascinating environment to be trying to deliver on return and risk objectives for members.
Who do you most admire and how have they influenced your life/work?
Fiona Trafford-Walker, director of consulting at Frontier, is the antithesis of everything that is wrong about this industry. She has always put members first (not just clients, but the members of those client funds) and has passed on her great sense of purpose to many people. She's one of the world's best consultants (not just my view!) and was a wonderful mentor for 14 years.
What is the best advice you've been given?
Another former mentor at Frontier used to reprise the famous old Jack Lang quote (via Paul Keating): "Always back the horse named self-interest, son. It'll be the only one trying." That simple quote explains our collective failure as a society on issues like climate change. It is also nearly as common in our industry as it is in politics. Seeing the best and worst of our industry has taught me a healthy degree of cynicism, but I still like to give people the benefit of the doubt. A lot of people in this industry genuinely put members' best interests first, and they're the ones worth spending time with.
Where did you grow up?
Ashburton in suburban Melbourne - before it had a $1 million+ price tag (but then again, you could say that about most places in Melbourne and Sydney nowadays).
What was your very first job?
A paper round in Alamein, which also gave me a World War II history lesson each afternoon. Alamein was a 1944 Victorian Housing Commission estate and most of the streets are named after WWII battles (e.g. Alamein Ave, Tobruk Rd, Tarakan Ave, Wewak Rd, Crete Ave and Victory Blvd).
Although we don't live in the area, my four-year-old son plays soccer at the same Alamein ground I used to play at, and ironically I manage to get lost around there most Saturday mornings. My wife thinks it's of little use that I can point out the WWII battle that the street refers to, when we happen to be in the wrong street!
Do you have a secret skill/hidden talent?
Apart from limited navigation skills, I have an innate (and not so hidden) ability to break bones! (By "skill", do you mean something I'm good at?). I went 20 years without breaking a bone, but have broken seven in the last 20 years or so - two on a footy field, one on a soccer pitch, two on a cricket pitch and one on a sporting field of sorts (the MCG car park - no comment!).
Having run out of sports to play, the most recent mishap was a DIY-related accident with a power drill (all the more embarrassing because the old man is a 76-year-old chippy from Glasgow who is still more handy with a power tool than me. I've brought great shame to the family).
Is there a particular cause or charity that you support?
Our family has lost too many good people too early to cancer, so we support the Cancer Council.
In addition, one lesser known cause that I researched before joining LUCRF Super, and now support, is the National Jockeys Trust . Some people may be aware of LUCRF Super's sponsorship of the NJT (in partnership with the Australian Jockeys Association), but less familiar with the cause. Under the partnership - which has existed since 2004 - all funds go to the NJT to provide relief of financial difficulties for jockeys and their families when faced with serious injury, illness and even death.
Some 880 jockeys have lost their lives since the creation of Australian racing, which is an astonishing figure. Many more have had career-ending injuries, as seen with the recent high-profile injuries to Michelle Payne, but many lower-profile cases each year lead to serious hardship for jockeys and their families. Fortunately, the NJT is there to help.
