New dual platform from IOOF
IOOF has launched a new platform product aimed at retail clients offering two different investment models to cater for the diversity in consumers’ financial sophistication and investment needs.
The platform is called Pursuit and consists of an option labelled ‘Select’, which encompasses a wide range of investment solutions, and another known as ‘Core’, which is a simpler model that requires less maintenance.
“Our research has shown that customers want greater flexibility in terms of their investment options. However, they also want simplicity and do not necessarily want a ‘one size fits all’ approach,” IOOF head of product Andrew Polson said.
Customers who choose Select will have access to more than 80 managed funds and a range of multi-manager options. In contrast, clients who choose Core will only have access to 25 managed funds, which also include multi-manager options.
Investors will require an initial amount of $10,000 to participate in Pursuits’ Select model, which increases to $20,000 for pensions, while those looking to place their funds in the Core offering will only need an initial amount of $2,000 or $10,000 for pensions.
The fee structure is different for both streams, with the Select strategy also charging a tiered administration fee that is capped at an account balance of $500,000, and the Core option levying a flat administration fee that has a ‘dial-down’ adviser trail. No entry or exit fees exist for the product.
Investors will also be able to switch between models at any time without having to pay a switching fee and without triggering a capital gains tax event.
“We are genuinely excited about Pursuit and its ability to meet investors’ different requirements in a tailored, cost-effective manner. We believe its flexibility and breadth of choice will be well received, as already indicated by preliminary feedback from advisers and the market,” Polson said.
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