If we are to believe the marketing brochures, financial markets today are far too complex to "do it yourself". Better to delegate the job of reading those investment statements to a stockbroker or financial planner.
Monday, September 27th 2004, 8:20AM
by The Landlord
The administration of these investments is also increasing in importance and cost.
Many advisers employ a third party, most commonly their favourite fund manager, to undertake the overall management of each of their client's accounts via a mastertrust structure.
A mastertrust is a computer-based platform that permits investors access to a range of fund managers and unit trusts through one investment door. Many of New Zealand's largest financial planning firms base their business around a mastertrust structure. Although mastertrusts are promoted as making the administration of their investments cheaper and simpler for clients, a closer look at these products suggest their fee structures are prohibitive and what benefits there are accrue principally to the adviser.
