Netwealth adopts changes to wrap service

Netwealth has introduced a $3 million fee cap on its wrap service as well as giving investors the ability to link accounts to qualify.

Investors can now link all accounts held by family groups, superannuation funds, family trusts and companies to qualify for the fee cap.

Also included are accounts held by de-facto partners and same sex couples.

Netwealth director Matt Heine said the move was made to help investors who are struggling in the current financial crisis.

“Platforms, fund managers and advisers are working in difficult times,” he said.

“Platforms must focus on ensuring the delivery of superior administration and super solutions to ease the increased workload on advisers from anxious investors.”

The platform provider has noted funds under administration have fallen 9 per cent in the past 12 months, with a dramatic fall in the past two weeks.

In an attempt to shore up support, Netwealth has introduced a rewards program where investors receive a 10 basis point cash refund a year on managed funds on the platform’s menu.

“We believe the introduction of fee aggregation and fee capping shows that Netwealth is fully committed to helping our investors in these difficult times,” Heine said.