Grenfell plots direct path
Grenfell Securities is looking to beef up its presence in the self-directed retiree market with the launch of a fixed interest product.
Grenfell Securities is looking to beef up its presence in the self-directed retiree market with the launch of a fixed interest product.
Grenfell Securities managing director Colin Grady says the group will continue to distribute the product direct to retirees rather than through financial planners who have not embraced the products due to their lack of commissions.
More than 90 per cent of clients directly access the group’s two funds and the ma-jority of the client base is in the retiree market.
Currently Grenfell has about 350 investors with $9 million funds under manage-ment but hopes to more than double that to $20 million by the end of the year.
"We haven't really pushed into this market until we found a niche in the mortgage fund area and hopefully the market will take notice of what we are doing," Grady says.
“Seniors will be interested as our style is akin to an old fashioned bank manager where people can ring up and check their investments and have a yarn at the same time."
However given this return Grady says planners are still not keen on the product due to the low commissions on offer.
"Planners are still working in a commission environment where a 3 per cent com-mission on a $100,000 unit trust with a bank nets a $3000 commission. Compared to our products offering offer 10.5 per cent over five years with only a quarter per cent fee which is worn by us as fund managers," Grady says.
"Grenfells sees itself continuing to fill a niche by offering investments to those with a few thousand in the bank at a few per cent, and who wouldn't be picked up elsewhere, but we offer them better rates for a lower minimum investment," Grady says.
AUTHOR
Jason Spits
Recommended for you
After seven years at the company, Iress’ chief technology officer for wealth management APAC, Anthony Gerrits, has departed as the firm commences a search process to fill the role.
With advice firms thinking about scaling up in 2025, research has detailed the main avenues financial advisers say they have used for successful recruitment.
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
