Vanguard outsources to BT
Vanguard has become the fourth major fund manager to outsource its registry operations to BT Portfolio Services.
Vanguard has contracted with BT to handle the registry of its fledgling Australian retail funds business, launched late last year and aimed at investors seeking low-cost index funds.
Other fund managers to outsource registry to BT Portfolio Services include Deutsche Funds Management, United Funds Management and the wholesale operations of BNP.
Vanguard managing director Jeremy Duffield says the decision will allow Vanguard to focus on its core competencies of developing and marketing proficient, low-cost indexed investment programs direct to Australian retail investors.
Vanguard's no-load index funds do not pay advisers up-front or trailing commissions, a move aimed at keeping management fees to a minimum. Duffield says they are designed to replicate Vanguard's huge success in the US with its index funds.
Vanguard topped the US fund-inflow figures last year with net inflows of $US49 billion, eclipsing its nearest rivals by $US36 billion, according to figures from US-based Financial Research.
The decision to outsource registry services to BT Portfolio Services runs counter to its strategy in the US, where it provides full administration for its more than $600 billion-worth of funds under management.
Under the arrangement, BT Portfolio Services will provide administration for application- and redemption-processing, banking and unit-holder maintenance.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
