Avanteos adds to defensive arsenal
Melbourne-based wrap platform administrator Avanteos has added term deposits to its range of defensive investments in response to growing demand from advisers and their clients for products that will help them weather market volatility.
“Advisers want a range of options to suit differing needs,” Avanteos general manager, product and distribution, Steve Thomas, said.
Avanteos’ new Commonwealth Bank term deposit carries an AA- rating and is available for terms of one, three, six and 12 months with rates of up to 8.2 per cent per annum. The minimum investment is $25,000. The company will also offer a 12-month Adelaide Bank deposit for those looking to invest upwards of $50,000.
Thomas said the term deposits complement the Avanteos platform’s range of negotiable certificates of deposit, which have proved popular since their introduction last year.
“We’ve experienced a six-fold increase in funds under administration into this investment type over the past few months, which simply highlights the demand for defensive investments,” he said.
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.