In a statement issued yesterday, the licensee announced it had received a number of business benefits since “turning its back on expensive master trusts and wrap platforms”.
GPS Wealth – a dealer group formed in 2012 by former Professional Investment Services advisers Greg Holman and Rob McGregor – has penned a deal with specialist MDA operator managedaccounts.com.au in order to provide clients with a “more efficient investment and administration solution”.
“Platforms and managed funds are still very expensive and inflexible, and our philosophy is to add value through asset allocation and by keeping fees down and preventing clients from making silly, emotional investment decisions,” said GPS Wealth managing director Grahame Evans.
“The future of financial planning is one where investments are held in the investor’s name, costs are minimised by using passive investments where suitable and advisers better educate their clients about behavioural finance.”
Client fees have dropped from up to 1.5 per cent of assets under advice to an average investment management fee of “between 0.6 and 0.8 per cent” of FUA, the statement explained, adding that the firm now intends to transition 60 per cent of total FUA to MDA structures.
David Heather, chief executive of managedaccounts.com.au, said the deal with GPS reflects the benefits of MDA structures for financial planning professionals.
“Advice businesses can centrally manage and implement direct portfolios and advisers can focus on delivering portfolio solutions that meet their clients’ personal needs and objectives without the need to produce a Record of Advice for each change to the portfolio,” Mr Heather said.
“There’s less administration and paperwork and more time in front of clients."
