Sealcorpwill not pitch its low cost platform, Elements, into the market on the basis of price, stating such a move would reduce it to the level of a commodity, according to Sealcorp chief executive Geoff Lloyd.
Money Managementexclusively revealed in late January that Sealcorp would be making its move into the low cost platform space and Lloyd says the group will not reveal its pricing structure until the full rollout of Elements next month.
“We want advisers to look at the quality of the deliverable service because they said they wanted a product that had reduced costs but still offered a wide range of services,” Lloyd says.
The pricing on the Elements platform has been based on a range of selective managers with 10 multi-manager models on offer from 29 underlying external fund managers andAdvance, also owned by St George, offering funds into the platform.
Lloyd says the group is finishing up the next phase of construction on the Asgard platform and will consider the core functions advisers need and pitch further development to that space.
“There has been a land grab by platforms, based on functionality, to entice planners to use them. However advisers only use 30 to 50 per cent of the functionality available and we are concerned we are not delivering in those areas,” Lloyd says.
“We will size up that 30 to 50 per cent space and ensure it is a core strength in the provision of products and services.”
Sealcorp has already unveiled a number of other initiatives this year with the launch of SuperLink, a self-managed superannuation fund (SMSF) administration service pitched at accountants and reported inMoney Managementback in early February.
Lloyd says the exemption carve-out in the Financial Services Reform Act for accountants would not affect the new offering but would probably create more interest in the service.
“The growth of the SMSF market and the demand that accountants will now face under the carve-out means they will need more help and this administration service fits in that space,” Lloyd says.
