BT Financial Group-owned platform provider Asgard is set to unveil a new wrap that targets investors with lower account balances or specific needs.
Infinity eWrap would be available to financial advisers from next month and would “break the traditional platform model” by charging clients only for the features they used, Asgard national product manager Kelly Power said.
“On Infinity, investors will only pay for the features they use,” Power said.
For instance, a client with $50,000 could choose to invest in just the core offering of 11 managed funds on Infinity, which incurs an administration fee of 30 basis points.
They could later pick from a deeper investment menu of 70 managed funds for an additional 15 basis points or from the full list of 400 products for an extra 0.20 per cent.
The ability to invest in direct equities would cost another 10 basis points, while the gearing option has a charge of five basis points.
“It will put advisers in control – giving them the power to choose from the full range of optional platform features, such as equities, term deposits and insurance, and as clients’ needs and balances change and evolve they can simply add new options,” Power said.
She said Infinity would also suit investors with specific needs, such as those who were only investing in cash and equities and who did not need or want to pay for a full-featured platform.
“We think this will have particularly strong appeal to the fast-growing self-managed super fund market as it’s suited to the way they invest and also addresses their higher sensitivity to fees,” she said.
“It will also help advisers grow their client base by tapping into other important and growing client segments, such as younger Australians and industry super fund clients.”
BT Financial Group is banking group Westpac’s wealth management business.
