April launch planned for Pie Wealth
Pie Funds is to launch its own advice business - in part because the amount of money coming in via advisers has dwindled.
Tuesday, February 27th 2018, 6:00AM
by Susan Edmunds
Chief executive Mike Taylor said the fund manager would launch an advice business, probably in April.
Two advisers have been hired and Taylor said the firm would consider what expansion in numbers happened from there.
"It's very complementary to what we do anyway."
He said Pie Funds' main competitors, Milford Asset Management and Fisher Funds, each had an advice offering.
"It's a natural revolution of the business. We have a number of clients come in asking for advice. Going forward we'll be able to assist those people rather than sending them away."
By comparison, Milford has nine authorised financial advisers and Fisher has seven.
Taylor said the number of independent advisers in the market was shrinking and an increasingly small number of people controlled advised-money.
Pie Funds received very little money via the third-party channel. "It tends to come direct."
The advice service would be for existing and new clients, he said. "We think we can attract a different type of clients."
The move would add an extra level of compliance to the business, he said, but the existing compliance team would handle it. Pie would start under the FAA regime and transition to FSLAB as required.
Taylor said the wealth advisers would focus first on client asset allocation and make product selection a secondary consideration.
Its own funds would be recommended where appropriate. Pie advisers would be able to help with other products such as fixed income, when needed.
The last details are being worked through, including the investment platform Pie will use and its risk-profiling tools. Former Westpac financial planner Simon Hepple will lead the venture.
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