Since the emergence of “Modern Portfolio Theory” and the “Capital Asset Pricing Model” in the late 1960s, institutional investors have taken a quantitatively driven approach to portfolio construction, looking to create portfolio diversification and obtain better risk-adjusted returns by balancing their asset-class exposures. This journey has seen several important advancements in thinking about how to optimally achieve desired results.
Funds that want to take the total portfolio approach first need to get the total portfolio view. To do that they not only need data – and lots of it – but a rock-solid understanding of exactly how they’re going to use it.
OneVue to buy Computershare’s retail unit registry unit
(Pictured: Connie Mckeage)
Financial systems company and SMA administrator OneVue is acquiring the retail unity registry business of Computershare, which was recently earmarked for closure. OneVue will lift out Computershare staff from the business unit and hopes to provide a seamless transition for funds managers and securities services clients.
The move should help bolster Australia’s under-invested retail fund administration sector, which has long been criticized by fund managers and others but with little effort to pay for its development. When Computershare attempted to significantly increase its charges to make its well-regarded registry business unit profitable early this year clients balked at the higher costs and the company decided to make an orderly exit from the field.
Administrators are nervous, too, because of the looming introduction of AQUA II by the ASX, which will allow for the end-of-day trading of managed funds. AQUA II is expected to be trialled from later this year. If successful, AQUA II could change the landscape for the administration sector.
Privately owned OneVue specialises in online investment management and administration for the financial advice, SMSF, self-directed and unit registry sectors.
The company was set up in 2008 after the amalgamation of three long-standing businesses: Pentafin, a unit trust and super software provider; Direct Portfolio Services, a managed account provider; and Australian Portfolio Administrator, a specialist provider of administration services.
The company is 80 per cent owned by directors and staff, including managing director Connie Mckeage and chair Gail Pemberton, both of whom have held senior positions at funds management and securities firms. The other 20 per cent is also held by individual investors with financial services experience.
The acquisition will leapfrog OneVue to become the biggest independent provider of outsourced retail unit registry.
An announcement is expected within days.
