OneVue embraces new managed funds service

The ASX’s new managed funds settlement service will transform the market as it will ultimately reduce administration costs and make it far easier for SMSF investors to participate directly in the managed funds space, according to OneVue.

OneVue chief executive Connie Mckeage said OneVue, which specialises in providing digital SMSF solutions to a range of intermediaries and third parties, is pleased to be one of 60 foundation members of the mFund Settlement Service, as it has now been formally coined.

“A number of impressive fund managers, responsible entities, unit registrars, administrators and brokers have signed on as foundation members, and I think this is just the beginning,” Mckeage said.

“Our sense is that many more organisations, investment managers in particular, will choose to participate in the mFund service sooner rather than later.

“Through mFund we’re redefining the possibilities of the managed funds sector by enabling investors to apply for and redeem units in managed funds under a process similar to how listed securities are currently bought and sold on the ASX.”

Mckeage said most notable was the absence of a number of big name platform providers that had not signed on as foundation members.

“I understand the dilemma they have in trying to protect their existing revenue base but I learned a long time ago that change is inevitable so you may as well embrace it,” she said.

“A number of industry participants didn’t think mFund would get off the ground but despite what the sceptics thought mFund will launch before the second half of the year and I believe it will be a success.

“There are too many fund managers out there who want to regain control of their businesses and that deserve to have a direct relationship with their clients.

“Platforms take that away from them whereas mFund creates an opportunity for fund managers to reconnect directly with segments of the retail market that until now have been largely intermediated.”

Mckeage said platform providers, including OneVue, now have to adjust their operating models to adapt to this new market offering.

“OneVue is pro-active, not reactive. Any opportunity that can reduce costs, minimise paperwork and provide investors with greater product choice is something we’re going to support and support from day one,” she said.

“Currently managed funds don’t take up a big portion of SMSF holdings, so you can see why tapping into this market, which comprises more than $532 billion in savings, is going to be a huge game changer and fantastic opportunity for fund managers as well as self-directed investors and the advice community.”

Mckeage said she believes organisations that embrace new technologies now are going to be the ones better placed to deliver superior service to clients in the future.

She added that OneVue is equipped to integrate mFund into its solutions when the initiative launches.