Adviser numbers at Wealthpoint are growing strongly, with investment advice emerging as its fastest-growing business line and mortgage advisers increasingly looking to KiwiSaver and other products to diversify their businesses.

The co-operative has 52 member firms and is about to reach 170 advisers, compared with around 150 to 155 a year ago.

Wealthpoint chief executive Simon Manning told Good Returns at its annual conference in Dundedn recently, that there is no sign of recruitment slowing.

“We have about 15 in the pipeline at the moment. We actually almost seem to constantly have 10 to 15 in the pipeline, so very strong recruitment.”

Wealthpoint’s structure means its member businesses are equal shareholders, irrespective of whether they have one adviser or a larger team. Businesses buy a share when they join and the co-operative buys it back when they leave.

Manning says adviser attrition, which historically ran at about 10%, has also fallen.

He says this could partly reflect the end of the post-licensing retirement cycle, but member businesses are also performing well and growing.

While general insurance remains Wealthpoint’s largest business line, investment advice is producing some of its strongest growth.

“Investment is our fastest-growing line,” Manning says.

"If you came here seven years ago, we probably would have only had 10 or 15 [specialist investment advisers]. Now we’ve got maybe 40 or 45.”

General insurance has had a tougher year following several years of premium increases, while life and health business remains relatively stable.

Wealthpoint’s investment proposition covers KiwiSaver, savings products and investment platforms rather than focusing on one part of the market.

Lending remains its smallest business line, with about 20 advisers actively writing mortgages and another 10 to 15 doing some lending.

However, Manning says lending is an important client acquisition tool and creates opportunities for advisers to build relationships across other areas.

“Where we’re really strong is if someone is saying, ‘I’m a mortgage broker and I want to move into KiwiSaver’, or general insurance, and bring that string to their bow.”

That diversification is becoming increasingly relevant as mortgage advisers contend with changes to bank remuneration.

“The mortgage space has been really difficult. We’ve worked hard to support our crew with the changes.”

Wealthpoint met Westpac and worked with Financial Advice New Zealand to provide feedback after the bank decided to remove trail commissions.

Manning says Westpac was entitled to make a commercial decision, but Wealthpoint disagreed with it.

“They made a business decision and they’re entitled to do that. We didn’t agree with it. We didn’t agree with the rationale that they gave.”

He says trail commissions have an important role in supporting sustainable advice businesses and ongoing client servicing.

“Trails are an important part, so that you’ve got to keep the lights on, right? And when your customers call for help six months or a year down the track, you’re there to support them.”

Manning says KiwiSaver is consequently becoming a natural extension for mortgage advisers wanting to build broader and more sustainable businesses.

He expects KiwiSaver to become increasingly important as political parties focus more attention on retirement savings and contribution levels.

Its immediate strategy, however, is to maintain steady rather than aggressive growth.

Manning says preserving Wealthpoint’s “family feel” remains important, but if its current growth continues the co-operative will be in a significantly stronger position this time next year.