Distribution group Quantum Financial Solutions has added a wrap account to its range of products.
Quantum, which is majority owned by National Mutual, has chosen National Australia Bank-owned wrap account provider Ausmaq and Grosvenor Financial Services to supply the service.
Quantum chief executive Paul Arrowsmith says the service is very similar to one financial planning firm Rutherford Rede are operating (click here for earlier story).
One of the key concepts behind the structure is that the traditional funds management operation has been dismantled and put back together in such a way as the planning firm has more control over the various elements.
This is done this through a company called Grosvenor which is a joint venture between Rutherford Rede and former banker Alan Yeo. Grosvenor's chief investment officer is former NZ Funds staffer Matthew Walker.
Arrowsmith describes Grosvenor as being the "middle office system" which sits between the Quantum adviser and Ausmaq. It handles client transaction generation according to risk profiles, monitoring services and executing direct securities trades. Ausmaq, he says, is the engine which executes online investment transactions, portfolio administration and it automates much of the paperwork.
The prime differences between the Quantum service and Rutherford Rede is that Quantum will have its own asset allocation committee and it is sourcing its research from different providers.
Wrap accounts, which are a relatively new service, have been the focus of much attention in Australia and New Zealand.
From next week Good Returns will be starting a series on wrap accounts.
Distribution group Quantum Financial Solutions has added a wrap account to its range of products.