Aqua II no threat to platforms
The Aqua II Managed Funds Services (MFS) platform was unlikely to cannibalise platform business from other operators but rather open up a new client segment that has not yet used an investment platform, according to Equity Trustees head of corporate fiduciary and financial services Harvey Kalman.
He said the platform, which was being built by the Australian Stock Exchange (ASX) for launch in 2014, would create a shift in the market where investors communicated directly with investment managers.
However he said this would not be a problem because many of them do not already engage with an investment manager or receive financial advice.
“The biggest market we see using the MFS is self-managed superannuation fund holders who may trade online via a broker and already use the ASX as a platform,” Kalman said.
“What they haven’t got is the diversification they need within their superannuation portfolios, and they will be able to access that via MFS.”
Kalman said MFS would provide transparency and straight-through processing on the placement of investments. It would reduce unnecessary costs and provide efficiencies in the trading system.
“MFS will buy and sell via a messaging system and we expect a number of players to sit on the sidelines waiting to see if it succeeds or fails, but also expect some early-adopters to make use of what will be an addendum to an existing system,” Kalman said.
He also stated that planners were unlikely to move en masse to MFS away from other platforms if they were happy with their existing platforms and able to service their clients through those platforms.
“MFS is an addendum to an existing system and will make the ASX more like other platforms, with planners and clients seeing it as a clearing house for listed trades and investments.”
Kalman said Equity Trustees would place its flagship fixed income funds on the Aqua II Managed Funds Services platform when it becomes operational in 2014 and would add further products over time.
“We don’t want to flood that market but we do want to respond to clients’ requests to us to provide investments in alternative asset classes that provide income and yield.”
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
The alternative asset manager has expanded its Singapore office with a head of Asian distribution, representing a “critical step” for the Asian business, where it is seeking to launch new offerings.
