Platform provider netwealth will offer a cap on its wrap fees, in a bid to shield clients from volatile markets, according to a director of the firm.
A $3 million fee cap is being introduced to netwealth's investment wrap from November 1, netwealth director Matt Heine said.
"We believe the introduction of fee aggregation and fee capping shows that netwealth is fully committed to helping our investors in these difficult times," Heine said.
The cap is the second such fee-based offering netwealth has made to its clients in the last month.
The firm announced its Investor Rewards Program earlier this month, which offers a 10 basis point cash refund per annum on any investment in managed funds on the menu.
Netwealth has also added a dollar cost average feature to the investment and superannuation platforms.
"Platforms, fund managers and financial advisers are working in difficult times. Volatile stock markets and best of breed platforms must focus on ensuring the delivery of superior administration and super solutions, to ease the increased workload on advisers from anxious investors," he said.
Despite the financial climate, netwealth's funds under management has held up well with the firm experiencing strong net inflows, Heine said.
With a cautious outlook going forward, netwealth's profitability in the current financial year continues to be strong, with the company carrying no debt.
"During these times we see ourselves attracting many new dealer groups to the netwealth products," he said.
In June, netwealth announced it had increased its stake in dealer group Financial Planning Services Australia.
