E*Trade moves into funds
Online broker E*Trade has announced the roll out of a system which will allow the research and trading of retail and wholesale managed funds.
Access to over 170 managed funds and portfolio management tools will be available through the new Managed Funds Centre with no fund exit or entry fees being charged.
Customers will pay on-going fees to the fund manager plus an E*Trade portfolio fee with the median fee over all their funds working out at less than two per cent.
E*Trade marketing manager, Bill Wileman, says many major funds are already offered through the Centre and "a couple of high profile funds are coming on soon".
Wileman says the product is aimed mainly at the public but there may be a facility for planners developed later, similar to E*Trade's on-line broking system.
"The market for self-directed investors is largely untapped in the managed funds market," Wileman says.
"A couple of people already traded on the website before we even began marketing it."
By aggregating orders the system will also give customers access to wholesale funds with a minimum investment of $1000.
The service makes use of research software supplied by Morningstar Australia that enables clients to choose investments using over 40 different parameters.
E*Trade chief executive officer Michael Deleray, says the Managed Funds Centre will streamline the decision-making and transaction process.
"With the E*Trade Managed Funds Centre, the entire process can take place in one session. There is no waiting around for information to be received and sent by mail," Deleray says.
"Our customers can research funds, click on a prospectus and place an order on-line. Orders come directly through the website into our vetting engine, are aggregated and then passed on to the fund manager. The process allows E*Trade Australia to offer wholesale and retail managed funds at very competitive prices."
Deleray says another benefit of the product is its ability to track and record customer's transactions.
"There's no need for our customers to dump the proverbial shoe-box on their accountants desk at tax time any more. All relevant tax-related information is held in one place on the website."
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
