TheAustralian Stock Exchange(ASX) has signed a heads of agreement with fund administration software provider,InfoComp, as part of its bid to launch its much awaited unlisted managed fund processing hub, ASX FundConnect, by early next year.
Under the agreement, the two parties will explore ways for InfoComp’s customers, includingPerpetual Investments,Credit Suisse Asset Management,Macquarie Financial ServicesandMerrill Lynch Investment Managers, to access FundConnect through InfoComp’s Composer fund administration software.
The deal is the second of its kind for the ASX, which announced a heads of agreement withIWLin May to allow financial planners to access FundConnect through IWL’s financial planning software.
ASX FundConnect project director Mark Spiers says the latest agreement could deliver the ASX with the critical mass of users required to make the managed fund hub viable.
“There are a number of large fund managers who use Composer to manage their unit registry, so we see a great benefit in facilitating enhancements such as straight through processing to the software package,” Spiers says
“Ultimately this would make a significant contribution to delivering a critical mass of fund managers to the ASX FundConnect service.”
The agreement also marks the latest development in the increasingly competitive race to become the pre-eminent provider of electronic processing services to the Australian managed fund market.
In May, InvestmentLink launched its transaction processing service for retail managed funds, e-Portfolio Transaction Service.
The Ausmaq group is also developing a similar service, although it is expected to concentrate on the wholesale funds management market.
The discussions between ASX and InfoComp over ways for Composer clients to access FundConnect are expected to take two months, after which both parties expect to enter into more detailed negotiations on a development plan for the service.
