The initial offering provides a diversified ETF model, a growth ETF model and a diversified ex Australian shares ETF model to simplify the investment discussion advisers have with clients.
“Adviser using our platform are increasingly adopting ETFs, and many have asked us to source ETF model portfolios,” Praemium commercial director Andrew Varlamos said.
“This is a first in Australia- to offer professionally managed diversified ETF model portfolios through a separately managed diversified ETF model portfolio through a separately managed account (SMA) platform,” ETF Portfolio Solutions managing director Tim Bradbury said.
“These portfolios enable advisers to advise- and not have to be investment managers too.”
Mr Bradbury said the Australian ETF industry grew more than 60 per cent in asset under management (AUM) in the last 12 months reaching $8.8bn.
He said with the boom of the industry, advisers are increasingly looking for cost effective deliver of investment products.
“Financial advisers are attracted to ETFs as a way to build a stronger, more complaint, simpler and profitable advice business,” Mr Bradbury said.
“Cost of delivery of advice is front of mind for advisers. Now they can reduce the cost of delivery whilst simplifying and enhancing the investment outcome.”
What’s with all these ETF models lately. May as well use an active balanced fund, probably cost the same after you’ve paid all your consultants.
4 or 5 ETFs is all you need maximum. Buy direct or use a platform. Too many middlemen in this industry getting paid for nothing.
That’s my Friday jab