InvestNow opens platform to advisers
Anthony Edmonds' InvestNow platform is opening its doors to advisers as an alternative solution for clients.
Friday, August 30th 2019, 6:00AM
InvestNow offers 111 managed funds and term deposits from four banks and currently has around $330 million in funds under management.
While the platform was set up for retail investors it is about to start offering its services to advisers. This change comes at at time when there is significant change in the platform market.
The ASB-owned Aegis, which arguably dominates the adviser market, is up for sale; NZX starts to ramp up its Wealth Technologies platform and Good Returns understand an Australian-based player is planning to enter the market next year.
Edmonds says InvestNow is not chasing or targeting advisers, rather its focus is on the end client. However it has made changes to the platform to allow advisers to charge fees through the service.
This is similar to Mint Asset Management, Smartshares and Nikko Asset Management which have all set up arrangements where adviser fees can be paid out of a client's assets under management.
Edmonds says this requires a written agreement from clients and the system is set up in such a way that the client gets advance notification that a fee is going to be paid. Also investors have to provide an authority allowing advisers to see their portfolios.
The actual fee is an agreement between an adviser and the client. It could be fee-based or a percentage of assets under management. InvestNow has no involvement or say over the fee deal.
He says InvestNow has similar functionality to the other platforms but is smaller in the number of funds it has on board.
"It suits advisers looking for solutions for smaller investors."
He says a number of advisers are already using InvestNow.
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