• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

  • Subscribe
  • Twitter
  • RSS Feed

Investment News NZ

Investment News provides financial advisers news stories from the financial industry in New Zealand. Subscribe to our free weekly newsletter.

  • Home
  • News
  • Kiwisaver
  • Subscribe
  • About
  • Advertise
  • Contact
You are here: Home / Investment News / … as software guru tips funds management price deflation

… as software guru tips funds management price deflation

March 2, 2015

By Greg Bright*

The ‘value chain’ in funds management, currently worth about 100bps, will deflate by 70-90bps in the next five-10 years, according to Ashley Porter, the founder of the zero-fee self-managed superannuation fund admin company McLowd. He provided a shock-and-awe presentation to the industry on the Gold Coast last week.

At the ‘My Platform Rules’ conference in Surfers Paradise, February 22-24, Porter stunned the audience of super fund executives, dealer group heads and platform providers with a presentation………[link]……. about the implications of “zero marginal cost production”, which is about to permeate all industries, he argued.

Porter, who started McLowd in 2012, having run a software engineering company and was looking for a new challenge, said that every software company in the world was subject to the same reality of zero marginal cost, due to technological advances such as cloud computing.

Porter said that social capital was replacing financial capital and we may be witnessing the “eclipse of capitalism” due to its “festering inconsistencies” following about 200 years since feudalism.

He describes McLowd as an “online community” rather than a vendor, with most of the code writers working for free in the same sort of communal environment, which established Wikipedia.

Under questioning from the floor at the conference, he said that McLowd’s business model would involve clipping the ticket in various small ways, once the system is up and running.

The only bright spot for big businesses was that scale could be a saviour in a zero-marginal-cost world.

The conference attracted about 150 senior industry people and included 37 speakers over two days in a TED-style rapid delivery program.

‘Robo advice’, the hot ‘fintech’ (financial technology) subject which has attracted more than US$1 billion of investment in just a handful of US start-ups in the past two years, was discussed during several sessions. Whether algorithmic information constituted ‘advice’ was questioned, but the consensus among the audience was that robo advice was going to grow rapidly. It represented, in the least, an educational tool available to everyone.

My Platform Rules 2 will be presented on the Gold Coast in February next year. The presentations are available on the website: www.ioandc.com.

 

* Greg Bright is publisher of Investor Strategy News (Australia)

Note: the author was co-producer of the My Platform Rules conference, along with Patrick Liddy, principal of MSI Group.

Print Friendly, PDF & Email
Twitter0
LinkedIn0
Google+0
Facebook0

Read More » Investment News

Recent articles

  • Brian Gaynor: a personal obituary May 22, 2022
  • Value-for-regulation: more money for FMA as funding boost, levy rise confirmed May 22, 2022
  • Adviser association wind-up on table as PI board stoush erupts May 22, 2022
  • Budget flags annual KiwiSaver contribution spike to $9.5bn May 22, 2022
  • Trust up but CFA survey finds insto-retail crisis disconnect May 22, 2022
  • Restoring active pride, JANA debunks outperformance prejudice May 22, 2022
  • Crypto a no-go for instos: PGIM May 22, 2022
  • BetaShares comes to town as NZ product looms May 22, 2022
  • So derivative: Australian regulator moves further on regional trading standards shake-up May 22, 2022
Finished reading? Why not subscribe? To receive a weekly email enter your email address here.

Primary Sidebar

WEEKLY NEWSLETTER

Sign up here to receive our weekly newsletter.
Learn More »

Investment News

  • Brian Gaynor: a personal obituary May 22, 2022
  • Value-for-regulation: more money for FMA as funding boost, levy rise confirmed May 22, 2022
  • Adviser association wind-up on table as PI board stoush erupts May 22, 2022
  • Budget flags annual KiwiSaver contribution spike to $9.5bn May 22, 2022
  • Trust up but CFA survey finds insto-retail crisis disconnect May 22, 2022
  • Restoring active pride, JANA debunks outperformance prejudice May 22, 2022
  • Crypto a no-go for instos: PGIM May 22, 2022
  • BetaShares comes to town as NZ product looms May 22, 2022
  • So derivative: Australian regulator moves further on regional trading standards shake-up May 22, 2022
  • Vale Brian Gaynor May 16, 2022

Search by Keyword

Most Recent Investment News

Brian Gaynor: a personal obituary

May 22, 2022

Value-for-regulation: more money for FMA as funding boost, levy rise confirmed

May 22, 2022

Adviser association wind-up on table as PI board stoush erupts

May 22, 2022

Budget flags annual KiwiSaver contribution spike to $9.5bn

May 22, 2022

Trust up but CFA survey finds insto-retail crisis disconnect

May 22, 2022

Investment News Archive

Most Popular Articles

  • NZ share-trading splurge could trigger tax alarms… posted on October 5, 2020
  • Flint set to spark platform competition posted on August 17, 2020
  • Westpac NZ flags retail advice sale to Forsyth Barr posted on October 19, 2020
  • The horror year in technicolour: free KiwiSaver 13 report released posted on September 30, 2020
  • Four to the core: Smartshares to expand, rearrange and reprice ETFs posted on June 22, 2020
  • Government dumps five defaults adds two in major overhaul posted on May 14, 2021
  • Kiwi Wealth hits the bigger time posted on November 26, 2017
  • NZ Funds directors back on board posted on April 24, 2016

Sponosored Content

Why timing the market is a fool’s game

An active investment manager’s lockdown toolkit: impacts, learnings and benefits

Mint chief executive, Rebecca Thomas

Join the club: financial wellbeing for women

Ensuring good customer outcomes

Quick-links to Popular News

  • FAP Compliance
  • Coronavirus
  • New Appointments
  • Financial Markets Authority (FMA)
  • Kiwisaver
  • Climate Change
  • Crypto Currency
  • Blockchain
  • Insurance

Secondary Sidebar

Recent News

  • Brian Gaynor: a personal obituary May 22, 2022
  • Value-for-regulation: more money for FMA as funding boost, levy rise confirmed May 22, 2022
  • Adviser association wind-up on table as PI board stoush erupts May 22, 2022
  • Budget flags annual KiwiSaver contribution spike to $9.5bn May 22, 2022
  • Trust up but CFA survey finds insto-retail crisis disconnect May 22, 2022
  • Restoring active pride, JANA debunks outperformance prejudice May 22, 2022
  • Crypto a no-go for instos: PGIM May 22, 2022
  • BetaShares comes to town as NZ product looms May 22, 2022
  • So derivative: Australian regulator moves further on regional trading standards shake-up May 22, 2022
  • Vale Brian Gaynor May 16, 2022

Footer

Copyright ©2022 InvestmentNews.co.nz — All Rights Reserved — Terms & Conditions