SMS - Strategies Day 2016
SMS - Strategies Day 2016

netwealth’s next private label deal imminent

29-Jul-2015

By Julie May

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Netwealth’s second private label managed account partnership was weeks away from being revealed, following the launch on Monday of its first private label platform for dealer group GPS Wealth.

Speaking to financialobserver yesterday, netwealth joint managing director Matt Heine said the group launched its separately managed account service in April, which provided access to four managers, including UBS, Ralton and Bennelong, with Ibbotson Associates overseeing various netwealth options.

As part of a wider managed account service play, the group said it would roll out a private label service to licensees wanting access to netwealth’s managed account offering and that were also looking to provide their own model portfolios where they had in-house investment expertise.

“There are more private label deals in the works,” Heine said, pointing to a large pipeline, with the next announcement to take place in August.

He said he expected the private label deals the group initiated would make up the largest part of its managed accounts business, and where licensees added their own models, netwealth would do the implementation and trading on their behalf.

In June, Heine told financialobserver the overall number of accounts that had been opened since netwealth launched its managed account service was around 100, adding yesterday that the figure had more than doubled and was now at 237.

“We’re seeing a far broader take up [of managed accounts] by advisers and their clients on the back of a significant education program,” he said, pointing out that while the take up had been a bit slower than anticipated, education was very important when it came to managed accounts.

He said advisers and clients wanted to know things such as who were the underlying model managers involved and what were the different mechanics.

In separate news, netwealth was named the number one platform earlier this month for overall adviser satisfaction in the annual Investment Trends planner technology report for the third year in a row.

Heine said the landscape had changed dramatically over the past few years and the business was winning market share as planners looked for greater functionality and product choice, opted for more reform-friendly business models and prepared for further digital disruption.

In the meantime, the business was looking to launch a number of global models in the fourth quarter, he said, adding two well-known managers had been identified.

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