AUSCOAL Super, a self-administered fund, has become the third client of a relatively new entrant to the member administration software market, while its investment administration manager will put his old shop to the test in a coming custody tender.
The 64,000-member fund has signed a letter of agreement to use the Wealth.net system generated by Bluedoor Technologies to perform unit registry and other administration functions for its membership.
“We’ve made the decision to go with Bluedoor,” Paul Coenraads, AUSCOAL Super investment administration manager, said.
However a formal contract between the fund and Bluedoor has not yet been signed.
If completed, the deal would make AUSCOAL the third superannuation fund client won by Bluedoor, following LUCRF Super and Axa North.
AUSCOAL intends to use Wealth.net as the platform for an upcoming range of products in which a range of manual administration functions would be migrated onto an automated straight-through-processing system, starting from next month, when the fund aims to begin implmenting the software.
Ian Mathieson, chief executive officer of DST Global Solutions, which acquired Bluedoor in late 2008, said the company was in advanced discussions with the fund but a contract had not been signed.
“We’re in dialogue with AUSCOAL, but don’t have a contract in place. We’re aware they’re favourably disposed to what we have to offer,” Mathieson said.
He said the superannuation and platform administration market should provide plenty of opportunities for Bluedoor to claim further market share in coming years, as some legacy systems in use matured to the point of obsolescence.
“It’s a marketplace that’s strewn with fairly aging pieces of technology. These things go in cycles, and we’re going into a cycle in which people are updating software or looking to do so.
“There’s a role for us to play in providing technology to third-party administrators and to funds that want to conduct their own administration.”
Watson Wyatt managed the administration software tender alongside AUSCOAL.
Meantime, AUSCOAL Super has begun preparations to tender its custody contract in coming months.
Coenraads, formerly a custodian with JP Morgan Worldwide Securities Services (JP Morgan WSS), will be running the tender, but all fund executives and investment and administration staff will provide input into the selection process.
JPMorgan WSS has been the fund’s custodian since 2003.
Coenraads flagged the consolidation of tax liabilities, and the ability to conduct more transactions online rather than by fax, would be among capabilities the fund would focus on.