netwealth has become the latest provider to unbundle its super offer with the launch of a next generation product to tailor investment and insurance requirements to the desired fee level.
Matt Heine, executive director at netwealth investments said the Super Accelerator was designed as an alternative to industry funds and bank-owned products.
"It is becoming more difficult for firms that don't have vertical integration to survive. In the platform market banks are increasingly using platforms as a distribution point for their in-house bank products like term deposits, brokerage services etc," said Heine.
"Our focus continues to be on providing responsive and full featured platform services that are built to meet the needs of advisers and their clients and not those of any institutional parent."
"As a result of improved technology and product development we're better able to manage multiple segments in the market. Depending on a client's life stage, a client might be looking for a low cost proposition without the bells and whistles but still want the flexibility to add features or investment choice as their situation changes."
The netwealth Super Accelerator is similar to Asgard Infinity, launched in October last year, although the structure allows clients to invest via the 'Core' menu or 'Plus' menu depending on required strategy. They also have an option to reduce cost by investing via a rewards menu, which carries 55 funds from around 27 managers and lowers costs by 10 basis points.
Administration costs for the Super Accelerator 'Core' offering are 0.35% of account balances up to a maximum account balance of $250k.
The Super Accelerator 'Plus' offering has a fee cap at $1m and allows up to 6 accounts to be linked for fee aggregation purposes.
Heine believes the regulatory environment is behind a number of platforms providing FOFA compliant products that offer wholesale pricing, stripped of distribution margin.
It may in fact be the precursor to low-cost platforms going direct to market.
"The introduction of My Super will see an increased focus on direct offerings and scaled advice tools and services for advisers and also direct to members," said Heine.
netwealth is currently used by approximately 700 advisers from a variety of dealer groups across the country.