Client admin costs could be cut by up to 40 per cent through Bluedoor 2.0, according to DST Global Solutions’ Philip Hogan, and the system could be the silver bullet that smaller super funds have been looking for.
Speaking at the launch of the latest version of the wealth management system for investment admin and registry, Hogan said client AXA Asia Pacific was claiming 40 per cent cost-reductions to its North product platform.
“Jeremy Cooper said that funds of less than $6 billion would not survive,” said Hogan. “But, with Bluedoor 2.0, these smaller funds will be able to compete through efficiencies.”
Financial institutions, fund administrators and asset managers will be able to do straight-through processing for direct equities trading, model portfolio and term deposits, said Bluedoor product developer Mark Cassar.
“The three immediate effects in the back-office will be in straight-through processing, long-running transactions such as rollovers, and exception-based administration,” he added.
Citing the Cooper review again, DST Bluedoor’s executive director, Martin Spedding, said that if half the costs of back-office admin were eliminated, then that could amount to almost $3.5 billion in savings.
Cassar said that several industry funds were already talking with DST about Bluedoor 2.0 because the solution would enable them to offer SMSF-like options or boutiques within the funds themselves, thus helping to stem the flow of high-net-worth individuals to SMSFs.