Platforms adopting pay-for-use fee model
Platform providers appear to be embracing a pay-for-use fee model in which they provide a core offering and allow clients to add on new features for which they pay as they go.
The new trend has emerged as the demand for low cost solutions increases and the pressure to cut costs mounts, and is evident in a number of new product launches from platforms such as Asgard, AMP and netwealth.
netwealth has announced the launch of Super Accelerator, which will operate on a pay-for-use, capped fee model.
Executive director Matt Heine said the new super product would provide fee and investment flexibility that only charges investors for the service stream they use.
Its 'core' menu will start at 35bps and cap at $250,000, while its 'plus' menu will also have a $1 million fee cap, allowing up to six accounts to be aggregated, Heine said.
Asgard's Infinity product has a similar offering. At its core is Advance multi-manager options, plus cash and term deposits, with additional features available. Launched last October, the offering has so far attracted close to $1 billion.
"Advisers and their clients have been asking for real alternatives to industry funds and bank owned products," Heine said. "Clients now have real choice when it comes to what they want to invest into and the type of insurances they hold.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
