BT Wrap will release a series of equities and managed fund models targeting the financial planning sector, as part of $15 million of spending on product development.
“That $15 million is what we’re going to spend in the bank financial year. We’ve already spent some, but we’re spending a lot more,” BT Wrap head Chris Freeman said.
The major focus of the BT Financial Group (BTFG)-owned group’s product development is a three-year equities program, Freeman said.
One of the main drivers for the development stems from increased interest in the self-managed superannuation fund market from financial planners, he said.
“A lot of people use direct shares to optimise the tax outcomes for their clients … plus of course the big one in terms of tax is the franking credits they can get in Australia,” Freeman said.
“So we’re seeing an increase in demand for direct shares and we’re trying to build an equities platform that will make life easy for planners in terms of managing those direct share portfolios.”
Freeman said the group is building equities and managed fund models that will be released in September.
Meanwhile, BT Wrap and its corporate super solution drew net inflows of $4.5 billion in the half-year ended 31 March.
Overall, BTFG fared well as the investment markets recovered and reported a 40 per cent rise in cash earnings to $301 million for the period.
Average funds under advice across units including BT and Asgard jumped 23 per cent to $77.9 billion, while funds under management rose 12 per cent to $44.5 billion.
