Netwealth hatches baby wrap
Friday, 4 July 2008 12:05pm
Platform provider netwealth Investments launched its Investor Rewards Program that allows investors access to a cost efficient ‘baby wrap' style investment menu.
The baby wrap is integrated into the firm's existing Investment Wrap and Super Wrap platforms and provides access to a shortened list of 40-50 investment grade funds at a lower cost through a rebate structure.
The rebate will be calculated daily based on the investments held by the investor and will be paid into their account every six months.
The firm is currently receiving submissions from investment managers seeking to be included on the Investor Rewards Program, with a finalised list of managers expected at the end of this month.
Matt Heine, netwealth director of distribution and marketing, said the Investor Rewards Program allowed investors to choose from a wider range of investments because it did not use a mandate structure.
In addition, the Investor Rewards Program also includes a choice of three model portfolios which have been created by the firm.
Each model portfolio uses three netwealth multi manager diversified options at its core, and a range of satellite funds chosen from the baby wrap menu.
The firm will rebalance and manage the portfolios and provide detailed information to dealer groups, advisers and investors.
“There appears to be a move by advisers to use model portfolios in effort to boost efficiency in their business, they realise the investment function should be outsourced to professionals," said Heine.
He said adding a baby wrap type platform option was a natural progression for netwealth.
“We've been looking at the market for a while and the idea of a baby wrap has come up to some degree, but we also wanted to do something that was different to what's already available in the market," he said.
Michael Hobbs
This story was found at: http://www.financialstandard.com.au/news/view/23435
Printed: Friday, 21 November 2008 7:59pm