netwealth benefits from insto 'inward-looking'
Non-institutional platform provider netwealth has hit $4 billion in funds under management (FUM), pointing to strong interest from the independent financial adviser (IFA) market.
The FUM figure signifies 35 per cent year-to-date growth for the platform provider – a subsidiary of the netwealth group launched earlier this year, which includes Bridgepoint, Financial Planning Services Australia (FPSA) and Licensee Pathway Services.
netwealth founder and managing director Michael Heine said the results reflect the company’s strong affinity with IFAs and their business needs.
“Increasingly the IFA market is looking for greater choice,” he told ifa.
“Where insto platforms are becoming more inward looking and becoming a conduit to selling insto product, we have really taken the opportunity to open up our insurance offering and give the IFA market what they need and want.
“With the Best Interest Duty coming into play, advisers will want administration and product options on their platform, so we anticipate it will become more popular.”
However, while the platform provider has made significant inroads into the IFA market, Heine explains that advisers from netwealth’s own affiliated dealer channels only account for six per cent of total FUM.
“It’s still embryonic in terms of take-up rate within the group,” he said. “Across Bridgeport and FPSA, probably around 55 to 60 per cent use the platform. A majority of the success has come from independent market relationships.”
netwealth’s traction with IFAs stems partly from the fact that, as a financial services licensee and advice group, the company is at “the coalface” and not merely a product manufacturer, Heine said.
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