BT Compact Wrap targets mass market

18-May-2015

By Julie May

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BT Financial Group (BT) was aiming to help advisers tap into new client segments through the launch of its BT Compact Wrap, which was rolled out last November.

Head of platforms Kelly Power told financialobserver on Friday the business had developed the offering in conjunction with both aligned and non-aligned advisers.

“Advisers have told us they need solutions for a range of clients: those starting out, cost-conscious investors and those with straightforward needs who don’t currently need full advice but may in the future,” she said.

“There are a number of advice clients out there [in addition to those who don't currently seek professional advice] who require simple investment strategies and who don’t need a broad mix of investment options that you’d expect from a full wrap service.”

BT Compact Wrap had no minimum fee, had an investment minimum of $500, and its flat pricing structure was attractive to a range of investors just starting on their wealth creation journey, she said.

“This offering really attracts those lower-touch clients in the mass market as it provides a simple way to get investment exposure with the help of an advice professional,” Power said.

Financial planners across the board had been asking for an offering like BT Compact Wrap, but Power acknowledged that advisers BT worked with in the independent space were largely the drivers behind the development of the new platform.

“We’re helping planners access new markets and we see this product competing well with industry funds,” she said, adding it suited newer advice clients and also, according to industry estimates, the 80 per cent of Australians who did not have a relationship with an adviser.

Power said BT Compact Wrap fully integrated with BT Wrap, so clients could migrate to a full offering as their needs developed.

In addition to a simple fee structure with reduced investment costs, the offering provided access to well-rated funds, Power said, pointing to the “Investment Trends 2014 Planner Technology Report”, which revealed the number one driver for advisers switching platforms was high fees.

She said current funds under administration for BT Compact Wrap stood at $3.7 million, with the average balance around $44,000.

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