Speaking at a media briefing in Sydney last week, Martin Spedding, executive director of DST Bluedoor, the subsidiary of DST Systems that developed the AXA North platform, said clients in the retail and industry fund sector are seeking technology solutions to thwart the rise of SMSFs.
“SMSFs are of great interest to us and to our customers who are interested in looking at the leakage issues from their own funds to [the sector],” he said.
“The model portfolio and SMA-type capabilities that are emerging are in part addressing those leakage concerns.
“Investors are looking at [basis points], at fees and at the level of flexibility offered to them by their funds in terms of investment options and tax management.”
Mr Spedding said that previously technology providers viewed “unbundling” investment packages on managed funds to allow stock-picking and tax management control as an “administrative nightmare” but that the growth of SMSFs have made this technology a reality.
“Technology has been developed to compete with self-managed funds on the flexibility issue,” he said.