Macquarie and BT were the most expensive wraps in terms of total cost to the investor over a five-year period, according to research from Investment Trends undertaken on behalf of RaboPlus.
The customised research compared platform fees on a $50,000 investment in 10 common investment funds over a one- to five-year period, as well as a blended model portfolio over a five-year period.
"We compared fees over a five-year time horizon because fund managers across most asset classes believe that investors should consider investing in these managed funds long term," Investment Trends researcher Andrew Knox said.
A select group of wraps including Colonial First Choice Wholesale, BT Wrap and Macquarie Wrap were included in the customised survey as well as discount brokers.
The research is the first of its kind and compares wraps, which are usually only accessible by financial planners, brokers and online platforms designed for direct brokers, according to RaboPlus.
The Macquarie and BT platforms were the most expensive based on an initial investment of $50,000.
Colonial First Choice Wholesale was not included in the comparison as only two common funds were represented on the platform.
"The BT and Macquarie wraps are only available through financial advisers. The fees, therefore, took into account a planner fee in addition to the administration fee," Knox said.
At the end of year five, RaboPlus charged the lowest fees for six out of the ten common managed funds.
Minimum investments to wholesale managed funds, platform administration, online tools and investor education were also compared in the survey.
RaboPlus also offered investors the lowest minimum investment into wholesale funds at $250 compared to all the other platforms.
E*Trade was the second lowest at $1000 and CommSec ranged from $1000 to $20,000. BT and Macquarie Wrap had the highest minimum investments at $50,000.
The research also showed RaboPlus and E*Trade were stronger in transaction and administration services, with Colonial First Choice Wholesale having the fastest application transaction times.
