Strong outlook for Challenger platforms
The outlook for Challenger platforms will remain strong as net fund flows favour the non-aligned platforms, according to Powerwrap’s chief executive, Will Davidson.
The platform, which offered a range of alternative investments, has an average portfolio of around $1.4 million each, with more than 435,000 high net worth investors in Australia who were responsible for $1.72 trillion in investable assets.
Funds under administration (FUA) increased 22 per cent between FY17 and FY18 to $7.8 billion, as of the end of September quarter.
According to Davidson, headwinds from the Royal Commission’s scrutiny of the vertically integrated wealth management business model had the potential to drive growth of non-bank platform providers.
“Net funds flows are clearly favouring the challengers and this is likely to continue,” he added.
Davidson also said that the turnkey services were particularly attractive to advisers looking to set up more independent operations.
AUTHOR
Oksana Patron
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
