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Industry funds to develop SMSF products
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Wouter Klijn is a journalist with InvestorDaily, a Morningstar publication.
Industry super funds are looking to launch self-managed superannuation fund (SMSF) options on the back of individually managed account-type technology, according to DST Global Solutions.
"We will see certainly a number of funds launching the equivalent of self-managed super funds within the next year or two," DST Global Solutions product development executive director Mark Cassar said.
Cassar said he had been in discussions with funds that were interested in using the firm's Bluedoor platform - which also formed the basis of the Axa North platform - to create SMSF solutions.
"The number of discussions I've had with potential clients ... that is among the first questions that is being asked of us," he said.
"They want to expand their offering and offer more retail-type options. That is very much on the top of their list."
Industry funds have been losing members, especially those with large account balances, to the SMSF sector and one of the prime concerns for them is to stop these outflows.
"Industry funds are losing something like 15 to 18 per cent of their benefit payments to self-managed super funds and the ones that are going to self-managed super funds aren't the $3000 accounts, they are the high net worth accounts," Cassar said.
Cassar made the comments yesterday at the launch of an expansion of the Bluedoor platform.
Axa Asia-Pacific worked with the company on the expansion and will introduce a number of the expanded functions to its North platform, including direct equities trading, model portfolios and term deposit administration facilities.
Whether AMP Limited (AMP), which recently completed the acquisition of Axa's Australian and New Zealand businesses, will also adopt the technology is unclear.
"Obviously, we have lots of discussions about what their platform strategy will be. We hope to do a lot with AMP in the future," DST Global Solutions executive director Martin Spedding said.
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