netwealth targets mid-2014 for SMA rollout

By Tim Stewart
 — 1 minute read

Financial services firm netwealth is undertaking a "big technology build" as it looks to launch an integrated separately managed account service by the middle of 2014, according to executive director Matt Heine.

While there has been a surge of interest in managed accounts in recent months, the SMA market has been dominated by standalone products, he said.

“Everything we’re developing has been about saying that it should be an integrated offering – you’ve got your managed funds, you’ve got your direct equities and then you can allocate to portfolios within the broader portfolio,” said Mr Heine.


netwealth has had a product in place called SMART (Sophisticated Modelling and Rebalancing Technology) since 2010, which allows advisers with their own discretionary licences to run industrial-scale managed portfolios, he said.

"The new product that we’re building at the moment – looking to launch mid-year – is actually an integrated SMAs where you’ll be able to access a range of professionally managed portfolios,” he said.

Advisers will be able to access a number of “large-name” managers to construct portfolios while netwealth dynamically rebalances the portfolios in the background – removing the need for the adviser to hold a discretionary licence, said Mr Heine.

"It’s a way of providing a very tailored outcome but on a mass scale.”

But the project will require a “big” technology build, he said.

There are a number of different parts to the project that are running parallel,” said Mr Heine. 

“Legal and compliance is obviously a big one [too], because for the service on the investment side we’ll be the responsible entity,” he said. 


netwealth targets mid-2014 for SMA rollout
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