HunterHall Investment Management, Australia’s largest ethical investment manager with $470 million in funds under management, has bucked the trend of investment managers outsourcing back-office administration by bringing its operations in-house.
After terminating existing administrator Glebe Asset Management, the Sydney-based fund manager will manage its own administration operations internally with the aid of technology company Powerlan’s Portfolio Manager platform.
Two members of the Glebe team, however, will join Hunter Hall allowing the Sydney-based manager to utilise their existing knowledge and expertise in administering the group.
It is understood growth in the assets under management of Hunter Hall, combined with Powerlan offering a new pricing regime, is responsible for the decision to take the admin in-house.
Last year, Powerlan changed its pricing structure in order to accommodate start-ups and boutique fund managers. The changes allow users to pay an ongoing monthly rental fee for software and support as opposed to a large upfront license and annual software maintenance fee.
“In many cases the upfront license fee can be over $100,000, and out of reach for any company with less than $100 million in assets,” says Powerlan business development director, Simon Dominguez.
Powerlan managing director Theo Baker adds: “This gives boutique managers the choice of bringing investment administration in-house rather than having to rely on the outsourcing option.”
Other organisations to adopt Portfolio Manager under the new pricing structure include Alpha Investment Management and Austock Brokers.
