An ASIC report notes the boom in demand for this asset, saying it heightens the need for “better-quality data” about the size of this sector where estimates range between $1.8 billion and $188 billion.
CPA Australia has weighed into the debate about the cost to oversee the industry, adding its voice to those who argue the fee structure favours the larger funds.
Russell marketer launches direct NZ fund platform
Implemented Investment Solutions (IIS), headquartered in Wellington, New Zealand, has launched a new online investment platform aimed at the growing direct market in that country.
IIS managing director, Anthony Edmonds, said the InvestNow service would start with a range of products in addition to the Russell Investments funds the firm already markets.
“Initially, we were just looking to make it easier for people to access the Russell funds via InvestNow,” Edmonds said. “But we quickly realised the logic of opening up the platform to a wider product range. For example, we already have funds available from managers such as Vanguard and Mint.”
He said InvestNow, which currently lists more than 20 funds, would expand its product menu based on investor demand.
In a note to prospective clients, IIS says InvestNow users would “simply pay the fees and costs associated with the investments they select”.
“This means that an investor in the Vanguard International Shares Select Exclusions Index Fund will pay ongoing management fees of just 0.20 per cent per annum,” the IIS note says. The Cash Advantage Fund, which invests exclusively in a deposit with Rabobank New Zealand branch, has no fees.”
According to Edmonds, while he had the InvestNow concept in mind since the dawn of the internet, the platform was now viable after recent technological developments and the evolution of the NZ funds market.
“InvestNow born out of frustration with traditional process for investors transacting in managed funds,” he said, which has become further complicated with compliance burdens such as anti-money laundering (AML) checks.
Edmonds said InvestNow streamlined all of the compliance and investment administration processes in a single online platform.
“Having an online site allowing clients to buy, sell and manage their own investments is a no brainer,” he said.
While InvestNow was initially targeted at self-directed, high-net worth investors, Edmonds said financial advisers and wholesale clients would also find it useful.
“InvestNow clients can allow their advisers to see their portfolio, adding efficiency to the advice process,” he said.
Fellow Wellington-based firm, Adminis, will supply the technology and custody for InvestNow.
InvestNow is separate from the IIS fund-hosting business launched last year to provide the NZ retail wrapper for third-party managers.
– David Chaplin, Investment News NZ
