FirstChoice cracks $4 billion
Colonial First State’s FirstChoice master trust has cracked $4 billion in invested funds after only 17 months in operation.
With commission paid to planners set at 60 basis points, interest in the low-cost platform has fuelled inflows equating to an approximate average inflow per month since inception of $220 million, after Colonial kicked off the fund with $300 million of existing funds rolled in from other platforms operated by Colonial and the group’s parent - the Commonwealth Bank.
However, a Colonial First State spokesperson says the rate of inflows into FirstChoice have actually increased over time, with the last billion taking only three months instead of close to four in the past.
Colonial says FirstChoice’s competitive pricing, with an average management expense ratio of less than 1.9 per cent as well as its levels of service are the key reasons for the broad support displayed by the market.
Approximately 26 per cent of inflows into the platform come from clients of Commonwealth’s tied advisers, 36 per cent from the group’s internal planning groups,Financial WisdomandCommonwealth Financial Solutions, and 38 per cent from independent financial advisers.
Colonial introduced enhancements to the platform in back in February, including the addition of four new single manager options and a management fee rebate.
The four new options were managed byUBS Global Asset Management,Platinum Internationaland 452 Capital, as well as a multi-manager Australian small companies portfolio.
Investors within the platform presently have over 50 investment options and can choose between both single manager or multi-manager portfolios.
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
